This year’s textile market has been shrouded in the off-season almost throughout the year. The vast majority of textile companies have experienced the process of suspending production and taking holidays, reducing production and destocking. Especially in July and August, many weaving companies took advantage of the hot weather to significantly reduce production, and it was very common to stop production for 7 or 10 days.
As the end of the year approaches, the textile market is still tepid. Will the holiday destocking pattern happen again? Yesterday, it was reported that the return of workers in some areas may be advanced to January 15, or even earlier.
The Spring Festival in 2021 is February 12. If it is as reported on the Internet The Spring Festival holiday is brought forward, so the holiday is almost a month in advance. The normal Spring Festival holiday time in our textile industry is generally around 15 days before the Spring Festival. This time point is basically consistent with the start of the national “Spring Festival Transport”. However, if the original holiday time is suddenly moved ten days ahead of schedule this year, the production of our textile industry will inevitably be affected.
Reduced production time is not entirely a bad thing
This year’s market is not friendly to the vast majority of textile workers, and sales and profits can be seen halved everywhere. The off-peak and peak seasons are completely broken, and the occasional peak seasons are fleeting. Under such circumstances, this year’s production time has been compressed due to the early holiday. Is this good or bad for textile workers?
It would definitely be a bad thing to have an early holiday in previous years. After all, the textile market 2018 was the production season for spring and summer orders after the new year, especially since many garments will basically be launched after the new year. But because the factory shut down production for a long time during the Spring Festival, every day during the Spring Festival was extremely valuable. If the holiday is carried out significantly in advance, it will be a disaster for textiles that are eager to be shipped. But this year’s market is on holiday ahead of schedule, which may be a relief for many textile workers.
First of all, the market was still quiet last year, and it was supposed to be a lively spring. Although the production time of summer orders is actually far less than that in previous years, the number of relevant orders received by various textile companies is far less than that in previous years. Most of them are making orders for next autumn and winter. It can be said that spring and summer clothing orders in the recent textile market are absent. Because the clothing sales side still has a large amount of spring and summer clothing in stock due to the impact of the epidemic at the beginning of the year. The spring and summer market next year is basically a function of digesting inventory, so there is no need to place this order again and increase inventory.
The second is to reduce production costs. For the vast majority of textile companies, even if there are no orders, they will not easily stop production and take holidays, especially various textile factories. Because once a long holiday is taken, it is easy to cause the loss of workers, and it will be more difficult to resume production. Without orders, work cannot be stopped, and the resulting expenditures on labor, water, electricity, environmental protection, etc. will greatly increase the company’s operating costs. However, an early holiday will give textile companies a reasonable reason to stop work, which can not only reduce expenses and inventory, but also avoid the loss of workers.
The last step is to ease the order dilemma. In fact, there are many textile companies in the market that have received orders, especially foreign trade orders, but receiving orders now is not necessarily a good thing for them. The first is the exchange rate issue. Most of the orders currently being made were quoted at an exchange rate of around 7 when quoted in the early stage, but now the RMB has risen to 6.5. Secondly, due to the shortage of shipping containers, the freight price increased from several hundred yuan to four to five thousand yuan. According to the current market conditions, most corporate profits have shrunk significantly or even lost money. Through the force majeure of the industry’s mandatory early holiday, the delivery time can be appropriately delayed, leaving room for the exchange rate to fall, and at the same time, it also allows a certain period of time for the containers to return to the country. If we wait until after the year to arrange production, many problems may be solved.
Next, we textile people will face possible problems caused by workers returning home. If you have an early holiday, you should make reasonable plans for your orders to avoid delivery problems. </p
