Time has come to late May, and the textile company that sold goods at low prices in the early stage has new developments! However, the frequency of releasing information about the sales this time is very different from the past. Since mid-May, the number of relevant information released has reached 9.
Prior to this, this textile company had released no more than 3 pieces of information about selling goods. But in May, the company frequently released such information. What are the reasons behind it?
Prices keep falling again and again. There is no lowest price, only lower prices.
February 23 was the time when this company first released information about selling goods. At that time, the price of 190T polyester taffeta was 0.82 yuan/meter; the second information was released on April 12, and the price dropped from the original 0.82 yuan/meter. 0.8 yuan/meter; the quotation was lowered again by 0.2 yuan/meter to 0.78 yuan/meter. At the same time, this situation also occurred in the price of 210T polyester taffeta, and the decline was even greater.
As early as when the company first released the information about selling goods, many textile companies expressed emotion that “the textile market is really too big!” With the release of the second and third information, even the onlookers were surprised. I can’t help but ask, “Is this price true or false?”
Small profits but quick turnover is a normal business method. Textile companies choose to sell goods at low prices in order to quickly mobilize funds.
However, in order to attract customers, some companies do not hesitate to sell at a “loss”, and their quotations have been reduced again and again. What’s more, at the expense of product quality, they gain attention with low prices and constantly overdraw the trust of customers. In the long run, can these companies really survive?
Supply and demand imbalance, high inventory is more likely to affect prices
In the past, the rise and fall of raw materials would directly affect fabric prices, causing fluctuations in the procurement costs and production costs of related companies.
However, judging from enterprise feedback, the textile market prices and profits are now becoming more transparent, and the impact of raw material fluctuations on fabric prices is gradually weakening. For example, last time the price of mainstream polyester varieties increased by more than 500 yuan/ton, but fabric prices remained stable.
“Downstream buyers are unwilling to pay for the increase in raw material prices. Now inventory and demand are the key factors affecting fabric pricing.” A weaving company revealed.
At present, terminal demand is showing a volatile and weak trend, and the supply and demand in the textile market are out of balance. Some fabric companies are experiencing unsatisfactory sales, and there are relatively few products for sale, especially those conventional fabrics that occupy a large market share, such as polyester taffeta and pongee. For textiles and the like, sales were not as good as expected, and the pressure on inventory accumulation also increased.
A large amount of funds are occupied by inventory that is difficult to sell. Once the liquidity of funds is tight, the phenomenon of selling goods at low prices will occur as expected, and the originally stable fabric prices will loosen.
Overcapacity, where should conventional products go?
In recent years, the textile industry has experienced crazy expansion of production capacity, production capacity transfer and blind production, and the situation of overcapacity has become increasingly serious.
“As peripheral production capacity increases, it becomes more and more difficult to receive orders. Sometimes, instead of letting cloth pile up in the warehouse and collect dust, it is better to sell it early to collect funds. If you sell it early, you may lose less.” A certain cloth company So said.
Since the beginning of this year, there have been frequent sales of goods in the textile market, and the prices offered have a feeling that they will never give up until the sales are completed. The chaotic prices also reflect the indifference of the market from the side. In just half a month, a textile company sent out nine sales messages in a row. Does this mean that there is no one to take over the inventory?
If low-price competition doesn’t work, then there is only one way left for the company – transformation and upgrading. In fact, there is still room for transformation and upgrading of textile enterprises. For example, you can develop into more subdivided and professional fields, or innovate and develop products with high added value, etc.
The pain caused by transformation is inevitable, but if you blindly indulge in vicious competition, it may only be a matter of time before you are eliminated by the market.
In the eyes of many people, the textile industry is a traditional industry. In early May, the official announcement was that traditional industries ≠ “low-end industries”. We must persist in promoting the transformation and upgrading of traditional industries and cannot simply withdraw from them as “low-end industries”. Traditional industries solve rigid needs. Through their own upgrading and transformation, their development potential has not disappeared.
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