“Some orders are no longer accepted.” In the past two years, this sentence basically appeared when the market conditions were very good and the orders were too late to be filled. However, this year, the textile boss said When he said this, there was a hint of helplessness in his tone, “We are not taking these custom-woven orders now because we have too much inventory. After the custom-woven production is completed, there will definitely be some extra inventory, which will not be digested. .”
It’s hard to find an order in today’s market, so why aren’t you taking orders?
To answer this question, we first need to explain clearly the attributes of the company. This textile boss runs a spot company. The company’s regular product inventory already has about 4 million meters. Therefore, if he receives another order for custom weaving, he will only need to It will increase direct production costs. Nowadays, the inventory on the market is getting higher and higher. Not to mention the gray fabrics on hold in trading companies. According to the data monitoring of Silk City.com, the inventory of gray fabrics in Jiangsu and Zhejiang is 36.7 days, an increase of 0.6 days compared with last week. in stock.
It can be seen that the oversupply phenomenon in the market is becoming more and more obvious, so for weaving enterprises, the enthusiasm for production is getting lower and lower, and due to the strong demand during “Double Eleven” and Christmas, it is not very ideal. On the contrary, due to the impact of logistics restrictions in various places, end customers’ ordering sentiment has also declined. At this point, a vicious cycle has slowly begun to take shape.
To make matters worse, there is also a discount for refunding money.
Because the market conditions are not very ideal, the smooth flow of funds is very critical for every textile enterprise. And precisely because the market conditions are not ideal, the financial pressure is increasing. One is that the cloth cannot be sold, and the other is The payment arrears are getting worse and worse. “Our payment was supposed to be 500,000 yuan, but in the end the customer paid 350,000 yuan, so there is nothing we can do.” A textile boss revealed to the editor. With this conversion, an order is fully discounted by 30%.
Thinking about life, a 30% discount is enough to open a shopping festival, let alone such a large transaction. This can really be said to be a discount that breaks the leg. In addition to the refund discount, now The price of fabrics is inherently easy to fall but difficult to rise. Customers continue to lower prices. The profits that textile workers can obtain have been squeezed and there is no room. As some bosses said, they are now maintaining old customers in order to wait for the future market.
What we’re saying is that we can’t sit still and wait for death.
Although life is sad, we still can’t sit still and wait for death. We have to find a way to improve the current situation. In “Dream of Red Mansions”, when the Jia family’s economy was difficult to maintain, Tanchun came out to manage the family and used two methods: “increase income” and “cut expenditure”. Method, now for textile people, “saving” is very important, but for the textile industry, “saving” not only refers to more reasonable cost control, but also takes into account the production capacity requirements. Carry out control.
In this regard, spot companies can be used as a good example, because spot companies have a lot of gray fabric inventory, and how to control these inventories has become a core issue. Just like a spot company, they originally had a single product. When the color is lower than 500 meters, the product of that color will be stocked. But now, except for the hot-selling colors, even if the price is lower than 500 meters, the stock will not be stocked. The production point will be blocked to cope with the current situation. Because it’s not far away from the New Year holiday.
Generally speaking, many textile people are still not very optimistic about the future situation of the textile market and still maintain a cautious attitude. However, in this year, when the market is very poor, textile people are experiencing oversupply. The body that once ran too fast, the soul that still lags behind after waiting.
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