In this current market, it is normal for orders to be reduced and canceled. However, it is a good thing to have some orders in hand, but it is difficult to guarantee whether these orders can be completed normally. It has often happened that the process is halfway through but suddenly canceled. The textile company in the picture below encountered this kind of situation. All crepe dyeing orders were canceled halfway by the customer. The only thing they could do was to make them all white in the hope that they could be used for other purposes later.
Compared to direct cancellation of orders, orders that are canceled halfway are more annoying. However, the pneumonia epidemic in Europe and the United States has become more and more serious. It is inevitable that fabric orders from these regions will be postponed and canceled. But the most worrying thing is that half of the orders have been canceled. If today’s textile workers receive an order, they are somewhat confused: Should the order be made or not? If you don’t do it, the delivery date will not be met; if you do it, it may be canceled halfway, which will waste investment and increase inventory.
The customer was hesitant and the contract was delayed
“The order quantity and color have been negotiated, and we have agreed that we can proceed, but the contract will not be issued. . We pressed for two weeks before sending the contract over. Without a contract, we would not dare to proceed at all, wasting two weeks in vain. And the customer was so hesitant about placing a contract, which made us very nervous now, fearing that the order would be filled halfway. If it is cancelled, the investment in gray fabric and dyeing fees will be wasted, and a lot of inventory will be increased.” A textile trader said helplessly.
Customers consider many issues when placing fabric orders, such as this year’s fashion trends and whether they can sell well. However, the pneumonia epidemic and the global economic recession have caused the cancellation of various fashion shows and fashion exhibitions, leaving fashion trends unclear. The lockdown of various places has restricted consumers from going out to spend, and it is impossible to talk about the sales of clothing. Especially in the first half of the year, the sales of spring and summer clothing are difficult to pick up. It is understandable that orders for various fabrics are either canceled or on the way to cancellation.
The dyeing factory rushes production and ships the goods before the customer cancels
If you want to have an order, but don’t want half of the order to be canceled by the customer, you can only wait until the customer has told you. Ship before “Cancel Order”.
There are not a few textile people who have this idea. Nowadays, many dyeing factories in the market are concentrated on all kinds of quick orders and urgent orders. Some textile companies even prefer to pay expedited fees to make products in a short time. Ship. It is not uncommon for goods to be delivered at night or in the middle of the night.
But if the customer wants to cancel the order, is it really enough to send the goods as soon as possible? Clearly impractical even if the order is delivered before the customer cancels the order. After all, the end of the fabric order does not end with the delivery of the goods. The most critical thing is whether the payment can be fully returned. At present, most textile markets are settled monthly, three months, or even half a year. Fabric orders are delivered, but customers do not use them. In the future, there is a high probability that the payment will be withheld, or even payment will be postponed indefinitely.
Orders were canceled halfway, flooding the finished product market
In general, there are orders in the textile market Cancellations are inevitable, especially on half-finished orders. Such orders will basically not flow to the original customers in the end. Most of them will be backlogged in traders’ warehouses, waiting for an opportunity to be processed, and then flow to the processed cloth market or various finished fabric markets.
On the other hand, traders may be more cautious when operating orders because orders may be canceled at any time. For those fabrics and colors that can be found in the finished product market, traders may be more inclined to purchase the finished product directly instead of using gray cloth to be processed in a dyeing factory. And it can be purchased at the end of the delivery period, avoiding inventory backlog and money waste caused by customer order cancellation.
For a period of time, a lot of finished fabrics will flow to the finished product market at low prices, and at the same time, there will also be many orders that choose the finished product market to avoid risks. The market for finished fabrics may develop over a period of time.
Although due to the pneumonia epidemic, the cancellation of fabric orders is considered force majeure. But it will definitely waste the textile people’s time and energy, occupy their working capital, and severely damage their confidence. Therefore, textile customers need to look at the market conditions rationally and avoid unnecessary losses that may be caused by placing orders. </p
