September-October is the traditional peak season for consumption. In the textile industry, the saying “Golden Nine and Silver Ten” is even more popular.
Looking back at this round of market conditions, there is a certain gap between the overall market performance and expectations. Judging from the feedback, the vast majority of textile companies expressed their reluctance, and many felt that they were not as good as before. Some even said, “The end of Silver Ten means that this year’s market has also come to an end…”
At this time, there is a textile company that is neither short of orders nor worried about payment. Doesn’t it seem a bit unusual?
A new force emerges, and the hot sales of clothing drive the volume of fabrics
Recently, I believe everyone should have read a lot of information about “the clothing industry is “seizing” jackets across the board”.
From this information, we extracted some key data:
In the whole year of 2022, Douyin jackets sold 2 billion yuan, with sales soaring 382.31% year-on-year, nearly five times more than in 2021.
From January to July 2023, Douyin’s jackets sold 1.3 billion yuan, with sales soaring 336.57% year-on-year. The full year is expected to exceed 2.5 billion yuan.
From January to August 2023, the cumulative sales of jackets on JD.com platform increased by 140% year-on-year, and the cumulative sales increased by 157% year-on-year.
Through the data, it is not difficult to find that as the demand for outdoor travel continues to explode, the category of jackets has suddenly emerged. The entire clothing market’s desire for jackets has become increasingly obvious. In addition to related companies that continue to increase their investment, new companies are also entering the market.
The popularity of the jacket track is undoubtedly a great benefit to outdoor functional fabrics. Coincidentally, the company at the beginning was a textile company specializing in outdoor functional fabrics.
According to the person in charge of the company, we can currently place orders until the end of the year, and the order types are mainly imitation memory, small Oxford, nylon, etc. Among them, the monthly sales volume of Oxford fabrics is 400,000-500,000 meters, and that of nylon fabrics is about 150,000 meters. In comparison, orders performed better in September and were slightly weaker in October.
Here, we would like to focus on the Little Oxford fabric. It is reported that in early September, a domestic clothing market purchased small Oxfords and Oxford strips in large quantities. It was later learned that this type of fabric is often used to make outdoor clothing such as jackets after treatment.
Strictly control repayments to create a virtuous cycle in the capital chain
After talking about the order situation, let’s take a look at the most troublesome problem for textile companies-difficulty in getting money back. For enterprises, the importance of funds is indescribable. After all, if the funds are not withdrawn, we will not be able to pay wages, let alone buy raw materials. If the situation is serious, the company will be paralyzed.
In fact, in the entire industrial chain, textile enterprises are a relatively weak link. The problems of slow and difficult payment collection did not occur overnight, but have accumulated over many years. Even, as the market competition becomes increasingly fierce, some textile companies have voluntarily relaxed the payment period in order to grab more orders and maintain good relationships with customers.
However, this textile company admitted that it was “not under great pressure to collect payment”. What’s the secret?
It is understood that the company originally focused on foreign trade and had very strict quality control requirements. After subsequently opening up the domestic market, due to the excellent product quality, it gradually accumulated a stable customer base. With a customer base, you will have confidence in negotiations, and it will also help you select customers. In the words of this textile boss, “I can fill orders as quickly as possible, but I won’t handle large arrears!”
It avoids the problem of payment collection and helps the company’s capital chain to form a virtuous cycle. The flowing funds can be better utilized, such as investing in new product research and development, expanding customer sources and maintaining customer relationships. wait. Subtly, it can also lead to the improvement of the overall strength of the enterprise.
Taken together, the polarization of the textile industry is becoming increasingly intense. If we only hope that the general environment will improve, we will only become more passive. After all, the days when everyone could make money amid the waves are long gone.
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