Before the holiday, a textile person said with emotion, “There are countless quotations every day, but most of them will eventually fall into the dust. Hundreds of people compete for an order, and it is a life-and-death struggle. In the end, even if the order is received, the money may not be earned.”
At the turn of the “Golden Nine and Silver Ten”, it stands to reason that textile companies should be quite busy, so why did this textile person express this emotion?
Buyers dominate, and the involution situation becomes more and more intense
It is understood that what troubled him was a difficult order, the first order was 10,000 meters, and the follow-up order was 60,000 meters. Because the fabrics are not conventional, there are only a handful of local manufacturers that can produce them.
Judging from the volume of the order alone, this order can be regarded as a “hot cake”. After all, the current textile market is rapidly changing, and the ordering mode has gradually changed. The volume of orders received by textile companies is generally small, especially this is A less conventional fabric.
When the textile professional completed the inquiry and quotation according to the normal process, “trouble” also followed. Feedback from the gray fabric factory stated that in just 2 hours, four people came to inquire about fabric orders of the same specification and quantity. It can be inferred from this that this order is most likely to be a real one, and there are many competitors. If you want to win this order, price gaming may be inevitable.
I don’t know since when, the textile industry has become a trend of “involution” and has become a proper buyer’s market. Some people have to say that it is normal to shop around! It is true that once upon a time, due to limited information, buyers had relatively limited choices. But now the situation has reversed. Overcapacity has led to a serious imbalance between supply and demand. Coupled with an increasingly transparent market environment, the buyer’s right to speak is no longer what it used to be.
Market research shows that during daily negotiations, textile companies not only have to face various price reductions from customers, but also need to beware of low-price competition from peers. If you are not careful, your orders will be dropped, and you will even lose money and make a profit.
There are many uncontrollable factors and it is difficult to guarantee profits.
In addition to dealing with the upcoming price competition, the biggest difficulty with this order is the fabric itself. This fabric is called full cupro jacquard. Although the technical difficulty is not high, the supply of its raw material cupro wire is very tight. As a result, it takes a lot of time just to get the raw materials, and the delivery time is even more difficult to control.
Since there are so many uncontrollable factors in this order, why are textile companies still hesitating?
On the one hand, because the market sentiment is not as good as expected, the order performance of textile companies is not optimistic enough, and some textile companies have difficulty maintaining orders. Even in the traditional peak season, some companies can only maintain orders for about half a month.
On the other hand, the profit from this order is really exciting. As we all know, the profit margins of conventional fabrics have become increasingly thin, while the profit performance of unconventional fabrics is relatively stable, and most can be maintained within the normal range. Taking this order as an example, under normal quotation, there is a profit of about 10 yuan/meter.
When this textile person was having trouble with the quotation, a relevant person said, “How to quote mainly depends on the attributes of the customer. If it is a brand, it is okay if the quality is good and the price is expensive; if it is a clothing factory, of course the cheaper the better. ; But if the order comes from a fabric middleman, then it’s okay not to quote the price.”
If you want to take a chance on an order with many competitors, the company will lose part of its pricing power, and customers and peers will have the final say on profits. Bicycles may not turn into motorcycles!
Question:
Faced with this dilemma, if it were you, what would you choose? Welcome to leave your answers in the comment area!
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