Last week, China Silk City Network conducted a questionnaire survey to investigate the holiday situation of textile companies. More than 200 textile people participated in the survey. The survey results showed that more than half of the textile companies will have holidays between mid-January and I had a holiday before, but this time is less than a month away.
At this time of year, it’s time for textile workers to start collecting receivables.
Textile people who continue to “overcome calamities”
On textiles For people, receivables before the Chinese New Year have always been a headache. In the context of this year’s epidemic, this problem has become more and more serious.
At the beginning of the year, the textile people finally got through the days of home isolation and began to resume work and production. They felt that the most difficult days were finally over, and they were ready to start working hard, but I never imagined that this was just the beginning of a difficult 2020.
In March and April, overseas epidemics began to break out. European and American countries closed their cities. A large number of foreign trade orders were cancelled. Unshipped goods were “lying” in warehouses. Some of the goods that have gone out cannot be paid back. After that, there was a long off-season. Fortunately, the domestic market recovered well, allowing textile companies to “recover” in time.
In October, amid the National Day consumption boom and market speculation, fabric prices rose and the number of orders surged. Textile companies that had been holding back for more than half a year finally “recovered from a long drought.” , but in the end, Europe began to lock down cities for the second time and a large number of orders were cancelled, and some textile companies once again had a large amount of funds “locked up”.
In the “peak season”, Must “hype”
The textile industry has always had a tradition of stocking up in advance, and stocking up is often based on some “rumors” in the market. In October, the textile market was “thriving” and looked like a “peak season”. When the market improves, some people in the market continue to speculate, and the prices of raw materials, gray fabrics, and fabrics also rise sharply. Then downstream companies will naturally have good expectations for the market and place a large number of orders.
Such hype happens every year. However, in previous years, although the hype would also bring some problems, because the terminal demand is still there, it can absorb most of the market. Order.
But the situation is different this year. Payment for clothing ultimately depends on end consumption. Under the influence of the epidemic, end consumption cannot keep up, but textile companies are still like Taking orders the way we did in the past, the entire industry chain will eventually become “water without a source.”
From what we know from the market, the most difficult receivables to collect this year are those orders received during the “peak season”.
Mr. Yang, an individual trader with annual sales of millions, said that as a self-employed person, he is involved in gray fabrics and trade. Basically, he does whatever makes money. In 2020 The orders received throughout the year were less than half of those in 2019, and profits were still low. In October, when the market finally got a little better, I was a bit “hungry”. As a result, by the end of the year, there were problems with the payment of some of these orders. But there was no way. At that time, I just thought it would be good to have an order, and there was no choice for small and micro enterprises.
Mr. Yang, an individual trader with annual sales of millions, said that as a self-employed person, he is involved in gray fabrics and trade. Basically, he does whatever makes money. In 2020 The orders received throughout the year were less than half of those in 2019, and profits were still low. In October, when the market finally got a little better, I was a bit “hungry”. As a result, by the end of the year, there were problems with the payment of some of these orders. But there was no way. At that time, I just thought it would be good to have an order, and there was no choice for small and micro enterprises.
Towards the end of the year, the textile market has rarely started to become “busy” again. The prices of raw materials continue to rise. The looms in the major textile clusters in Jiangsu and Zhejiang also maintain high operating rates. Even the “worst of the year” imitation silk, which has recently been sold out, turned out to be pretty good.
But when the market performance seems to be picking up again, textile people must remember the lessons learned from the past and do not blindly follow the market. When taking orders, pay attention to the other party’s credit and their own capital flow. .
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