Recently I heard that many textile bosses are still producing stocks one after another. The reason is also very simple, just to ensure production and workers.
“Our factory is currently producing filament slub cotton on air-jet looms. This type of product is a regular product in the market and is very large in volume. However, it is not a hot seller. It is in production and inventory. There is nothing hot-selling in the market at present. If we don’t produce machines, it will If we have to stop, there are fewer and fewer workers, and now the workers have to run away. If the market improves and orders are placed, we will not be able to recruit workers by then.” said a textile boss in Shengze area.
In the current market during the epidemic, continuous production and inventory is undoubtedly a dead end. Looking back at the year when the epidemic first broke out, how many textile bosses were overwhelmed by the millions of meters of inventory in the warehouse. At present, the price of raw materials continues to decline. Dropped, the drop in costs warns everyone that now is not the best time to produce inventory!
Of course, the textile boss also has his concerns. Indeed, recruitment has been one of the long-standing problems in the market. Although the peak season is not busy now, a large number of orders may suddenly be placed one day. If there are not enough workers in the factory, it will directly delay the entire process. During the production and delivery period, you will not lose any inventory at that time. After all, the inventory can still be sold, but it will be difficult to find customers if they lose it.
Inventory, there are advantages and disadvantages…
Excessive inventory is definitely a problem in this situation. The gray fabrics produced due to lack of orders cannot be sold, and they cannot be cashed out in the warehouse. The market is in recession and demand has decreased. There are many low-price competitions and high costs. The inventory produced can only be sold at a loss. In the end, the textile boss is “a dumb man who eats Coptis chinensis and cannot tell the story of his suffering.”
However, inventory is a good thing during the peak season. Many textile bosses like to produce some inventory when the cost is low. Orders in the peak season are endless, and hot-selling products have to be queued up to wait for delivery. At this time, there are textiles in stock. The boss has an advantage. If the customer is in a hurry, he can not only take out the spot goods immediately, but also raise the price. After all, whoever has the goods in hand can control the price.
The filament slub cotton mentioned by the above-mentioned textile boss belongs to the market variety and is also the current seasonal fabric. Although it is a jet product, it is very cheap at only 2.3 yuan/meter. According to the current raw material price, the cost is about 2 yuan/meter. Production Each machine can still make a gross profit of 200. Therefore, it is not impossible for textile bosses to produce such fabrics. After all, there are a large number of regular varieties in the market, so they can naturally be sold in large quantities if they are popular.
But according to the current market conditions, holding millions of meters of inventory in hand is definitely not good for you.
April, is it hanging?
What the market may be more concerned about than inventory is whether there will be orders placed in April?
Half of April has passed, but textile people are still worried about the epidemic. The epidemic in Shanghai is serious, which directly affects the normal operation of the textile market in Jiangsu and Zhejiang. The main reason for this year’s slow peak season is the epidemic. Market confidence is low and demand has dropped sharply.
Don’t lose confidence in the market first. Don’t jump to conclusions until the last minute. As long as it’s still the peak season, there may be a rebound even on the last day of April.
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