Everyone must have had a preliminary impression of this year’s Double Eleven. I feel that this event is not very powerful. After asking friends around me, I found that many people purchased less after the pre-sale started this year. What is this? why?
Many people say that since this year, there are more and more shopping festivals. There is no need to wait for Double Eleven. Various shopping festivals are stimulating consumption. But by the time of Double Eleven, there is no need to buy many things.
For textile people, the same thing happened.
Nowadays, many textile people feel that orders are being received all the time, but they rarely receive orders at a certain point in time (peak season). This may be the fundamental reason why the peak season is slow and the off-season is slow.
Terminal mode change
In fact, to put it bluntly, the business of textile people depends on the needs of terminal clothing companies. The demand of terminals determines the number of orders in the textile market. In terms of domestic trade, the demand pattern of terminal apparel companies has changed significantly compared with the past.
With the rise of live streaming, e-commerce sales channels are becoming more and more popular. As a new media model, e-commerce’s natural attributes include fast updates and fast sales.
This requires textile workers to respond quickly to orders. In recent years, spot goods and quick response have become a very mainstream business model in the market.
A business owner who specializes in polyester taffeta told the editor: “There is no shortage of orders in our factory now. They are all small orders, but there are many batches. From time to time, customers will place orders.”
Textile order tile
It can be seen that it is not that there are fewer orders, but that the orders are scattered. The most fundamental reason for the scattered orders is the demand issue of terminal clothing companies we just mentioned.
Shopping festivals that happen every now and then have tightened the pace of terminal companies, and stocking shopping festivals can always bring a little vitality to the textile market.
Originally, there were only one or two shopping festivals a year, and merchants could place centralized orders. However, the increase in shopping festivals has naturally caused orders to become sparse, spreading from one point in time to the whole year.
For enterprises, there is actually no big difference between the overall order volume after tiling. So why are textile people saying that this year’s market is not as good as before?
Profits fell sharply
This year, what most textile people are complaining about is not the lack of orders, but the low profits. The current low profits of textile people can be divided into three points: 1. Customers lower prices; 2. High prices for raw materials; 3. Competition from peers.
Customers lower prices
Why are there so many shopping festivals? It is obvious that in order to stimulate consumption, the consumption that needs to be stimulated must be because consumption is sluggish, which means that the life of end customers is actually not easy, so for greater profits, customers come to us textile people When discussing business, the natural starting point is to lower the price.
High price of raw materials
In recent years, we have been in an era of high-priced raw materials, and crude oil has experienced sharp rises and falls from time to time with various fluctuations in international factors. When the price of raw materials rises sharply, the price of raw materials goes up, and when it falls sharply, customers find that the price of raw materials can be high. Taking advantage of this opportunity to further lower prices, textile workers are struggling to survive.
peer bidding
Since the expansion of textile production capacity in 2018, the textile market has quickly entered an era of high inventory. The inventory of weaving companies can reach more than one month. After supply exceeds demand, it is inevitable for peers to involute. And because customers now have high expectations for the quality of fabrics The focus is lower than price, so price-only markets make peer bidding even more serious.
To sum up, in the current situation where terminal sales have undergone major changes, we textile people have been greatly affected. Whether it is changes in order acceptance or decline in profits, it means that the textile market has entered a new stage. In this low-profit era, how to create more added value from fabrics will become a core topic.
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