Since the beginning of this year, the domestic epidemic has repeatedly disrupted and neighboring countries have accelerated the resumption of work and production, resulting in the transfer of domestic textile and clothing orders to Southeast Asia at an accelerating rate. As a result, our local textile market has been greatly affected. The order volume this year is compared with previous years. dramatically drop.
Now the arrival of the traditional peak season has boosted the market, but the extent is not obvious.
Orders repeatedly missed due to epidemic
From a global perspective, although the global economic level has declined this year and the consumption structure has changed, which has led to a decrease in textile and clothing orders, the cake is smaller but not gone. You must know that foreign trade accounts for a large proportion of the textile and clothing industry. The degree is quite large. The editor was watching videos two days ago and saw a video saying: “There are 1 billion users in China, but there are 2.3 billion users in the English region. This market is very huge.”
Due to the recurrence of the epidemic this year, the lockdown has led to a disconnect between end users and the market, and many end-user companies have had their orders taken away by other companies. An owner of a company that specializes in bags and bags reported: “I have several customers in Yiwu and Shandong. The lockdown was just lifted two days ago. When they came to us for inquiries, their orders had already been taken away by other companies.” As for textiles, There is a relatively clear time point for trade. If the city is closed due to the epidemic, orders will be missed. Some of these orders were transferred to Southeast Asian countries.
Textile production capacity transferred to Southeast Asia?
Due to the transfer of orders to Southeast Asian countries, the “southeast flight” of the textile industry seems to have become a common phenomenon. We can see a lot of news about textile companies starting production in Southeast Asia. I still remember that in 2018, production capacity in Jiangsu and Zhejiang was transferred to the central and western regions. At that time, Almost everyone is afraid of being too late to seize the opportunity, but will the situation be like this when the textile industry flies to the southeast this time?
After some research, the editor found that this possibility seems unlikely:
A textile boss who specializes in nylon foreign trade said: “It is still difficult to transfer the weaving industry. The printing, dyeing, finishing and other industries in the textile industry chain require long-term accumulation and high technical content, otherwise it will be impossible to survive and produce qualified products.” Fabrics, so currently it is more of the most labor-intensive industry such as garment making.”
Another textile boss who is mainly engaged in the foreign trade of Shumei Silk also reflected: “Expanding in Southeast Asia requires a large amount of the company’s working capital, which is inappropriate in the current international economic downturn. Some large companies may do this, but Small companies currently don’t have the energy.”
It can be seen from the above two points that although orders have shifted, fortunately, currently they are mainly reflected in the garment manufacturing level. The overflow of orders in Southeast Asia is partly due to the imperfect infrastructure in the region, which leads to the inability to meet the production capacity. Orders received. The feedback from enterprises in the survey also reflects this.
The overall foreign trade of the market is due to domestic sales
Generally speaking, Southeast Asia is currently undertaking basically our foreign trade orders. The loss of these orders has indeed had a certain impact on the foreign trade situation in the textile market. However, after market research, we found that the market as a whole is currently When it comes to foreign trade, the situation is still better than domestic sales.
A boss who specializes in four-sided bombs said: “Foreign trade is indeed better. Domestic market demand is insufficient, and foreign trade is not very good compared with previous years.”
A boss who specializes in polyester taffeta also said: “Overall, foreign trade is good, but domestic sales have not recovered. Domestic sales were mainly affected by the epidemic in the first half of this year.”
It can be seen that although orders have been diverted, there are still certain advantages overall. By comparing the products made in Southeast Asia, we can find that the current domestic foreign trade orders are generally dominated by brand manufacturers. These orders are in terms of feel, There will be higher requirements on color difference and other requirements, and this is the advantage brought by the complete industrial chain and mature technology of the domestic textile industry!
It has to be said that the current textile market is indeed experiencing an unprecedented trough. In this trough, the textile industry is encountering various challenges, whether it is capital collection, cost pressure or order reduction. The most fundamental of these problems is The reason is that the market situation is relatively sluggish. The market is waiting for a shot in the arm, and recovery of the market still needs to wait.
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