After the ravages of the off-season in August, are you still looking forward to the “Golden Nine and Silver Ten”?
Time flies very fast, and September is coming in the blink of an eye. Through research, the editor found that the textile bosses do not seem to be optimistic about the traditional peak season…
“I feel that the ‘Golden Nine and Silver Ten’ will not be good. If it is good, it will start to improve in August. Judging from the current situation, it may The market will not be good,” said Mr. Lei, who specializes in children’s clothing.
“The second half of the year will generally not be good. There will be a wave of market prices during the Golden, Nine and Silver Tensions, but I don’t know how long it will last. It mainly depends on the temperature and foreign epidemic situation.” Main business elasticity Mr. Li of the series said.
“‘Gold Nine Silver Ten’ will not be good, mainly The demand is still not good, but for us, the traditional peak season has little impact, and we still receive orders steadily.” Mr. Qian, who mainly sells suede and corduroy, said.
“The market situation in the second half of the year still needs to be waited and seen. The impact of the epidemic abroad is relatively large, and it is still difficult to judge at the moment.” said Mr. Zhang, who specializes in home textiles and clothing fabrics.
The statements made by several textile bosses above all stated that the market situation in the second half of the year will be difficult to achieve the expected results. Although last year due to the impact of the epidemic, the market situation started in mid-August. The market has ushered in a turning point. Many textile companies have received a lot of orders, but this year is different. Compared with last year, the domestic epidemic has been basically controlled this year, and foreign markets are slowly recovering, but it is already the end of August. , the turning point in the peak season has not yet appeared, and it is obvious that it will not happen.
The main reason for the poor market situation this year is that the profits of the orders on hand of textile bosses are pitifully small…
An order that makes no money is worse than no order at all?
“Orders in August are obviously less than before, but they can still be received. The profit is low and there are only regular old customers. I just rejected an Oxford cloth customer. The profit is thin (10%, normal is 20%). The PU coating has increased by 10% and is more than a cent more expensive. The balance is long, and it is easy to lose money and I will not accept it.” said Mr. Lei, who specializes in children’s clothing.
“There are not many orders now, almost the same as in the previous period , less than the same period last year, mainly because the spandex elastic series has a relatively large volume, which is a little worse than that in early August. The basic profits of current orders are not high, and many of them are taken to ensure production, but as long as you do not lose money , I will still take it.” Mr. Li, who specializes in elastic series, said.
“Currently the orders are okay and have always been relatively stable. The growth rate is 10% compared with last year, which is not much better. There are no hot-selling products and they are all old products. Mainly home textile fabrics such as sofas and cloths have stable sales regardless of the four seasons. However, the profit is not much, so we can barely maintain capital.” said Mr. Qian, who mainly sells suede and corduroy.
The current market is still in a situation where there are orders but no profits. Since the end of June, the phenomenon has become even more obvious due to the rapid rise in raw material prices. Some textile bosses He once complained that because the raw materials were not purchased at one time due to financial problems in June, the profit of millions of meters of pongee textile orders was only 10%. In July, he lost a lot of money in an instant. It is conceivable that this year’s textile industry The profit of the order on hand by the boss is so meager.
The price of raw materials has fallen recently, and textile bosses have not purchased it. The reason is very bitter…
Falling raw materials, slow payment, lack of money to buy
Since the beginning of August, the price of polyester yarn has begun to fall, and the price has been suspended for nearly more than a month. The promotional routine of polyester manufacturers has started again, but this time the textile bosses don’t seem to buy it. Although the price drop is expected, a long-term price increase is bound to usher in a period of price drops. However, the boss who bought silk at this time dropped the price. But much less.
“Purchase of raw material promotion, almost ten days The quantity is around, but I am not optimistic about the future market. There may be promotions, so there is no need to buy in large quantities.” said Mr. Li, who specializes in elastic series.
“I didn’t buy it, I just bought it on demand. But I feel that the raw materials will probably increase a little later.” Mr. Qian, who specializes in suede and corduroy, said.
“The price of raw materials fluctuates greatly, so we will not buy in large quantities, but purchase according to the variety and usage.” said Mr. Zhang, who specializes in home textiles and clothing fabrics.
Obviously, even if raw materials are promoted, textile bosses will not buy in large quantities. First, they feel that there will be promotions in the future, and secondly, they have sufficient raw materials on hand. Finally, there is a lack of funds on hand.
“They are all regular customers, and the payment situation is basically stable, and there are no arrears, but it usually takes 2-3 months for payment. There is no funds on hand. Not enough,” said Mr. Lei, who specializes in children’s clothing.
“They are basically all old customers, and some of them are in arrears. It usually takes one to two months to pay back.” Mr. Li, who specializes in elastic series, said.
“Customer returns are relatively stable, and it usually takes 3-4 months.” Mr. Qian, who specializes in suede and corduroy, said.
Although the above-mentioned textile bosses said that the payment situation is relatively stable, they are usually old customers. Old customers basically do not settle in cash and usually return payment. It takes 1-4 months to make the payment. During this period, the company’s funds are not very abundant, so there is not a large amount of funds to purchase raw materials.
In general, the market orders this year are not It’s not bad, but it’s just that raw materials have been at a high level, customers have habitually lowered prices, and low-price competition in the market has made weaving manufacturers’ profits low. This phenomenon may continue until the second half of the year. Although raw materials have fallen in price, textile bosses have little desire to buy. , when a large number of orders are placed during the peak season, the price of raw materials will naturally rise again. Assuming that the price of fabrics is difficult to rise, it is still difficult to avoid this problem, so it seems that the textile bosses are not looking forward to the “Golden Nine and Silver Ten”.
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