Affected by the COVID-19 epidemic, the global economy has slumped and market demand has dropped sharply. In the context of a poor general environment, textile and garment enterprises have also suffered a huge shock. Since the beginning of this year, countless clothing companies around the world have closed down, and upstream trade and weaving companies have also been suffering. Order cancellations are frequent, production and sales are difficult to balance, and gray fabric inventories have reached record highs… The textile market has formed a polarization phenomenon, especially in the In the post-epidemic era, the polarization phenomenon has become more serious.
While the prospects of the clothing industry are worrying, the home textile market has been a “dark horse” with outstanding performance, especially after entering August, with only elastic fabrics Compared with the clothing market where seasonal products are more prominent, the home textile market is much better.
The order situation of most companies is relatively stable, and the best-selling products are diversified
Judging from the sample companies collected by China Silk City Network, there is also a two-level differentiation phenomenon among companies making home textile products in the current market, but it is not as prominent as in the clothing market. Judging from the companies surveyed, it is reported that after August, there are still a majority of companies whose home textile market has improved.
Mr. Chen, who focuses on the domestic trade market, said: “We mainly sell satin and chiffon. The factory’s operating rate is about 95%, and the inventory is not too much. . The current orders on hand are still good and can be completed by the end of the month. Mainly velvet chiffon, mainly making window screens.”
One is mainly engaged in peach skin velvet, Mr. Shen of Imitation Linen also said: “Our company has few domestic trade orders, but some foreign trade orders. There are also small orders of several thousand meters for export to the United States, and there are also large orders of tens of thousands of meters. They are mainly used for quilt sets and sofa cloths. ”
Another company specializing in wide-width home textiles such as suede, peach skin, and imitation linen, Mr. Qian has also received foreign trade orders: ” Our factory’s current operating rate remains at 80%, and the inventory of gray fabrics is less than a month, which is not high in this year’s market. Our orders have been relatively stable in the past two months, so the order pressure is not great. In terms of foreign trade, recently We have also received an order from the UK, about 20,000 meters, which is not a large amount compared to previous years, but this year it is already good to have an order, which can keep the machine running.”
However, some companies admit that the situation has not improved significantly recently, especially in foreign trade. Orders are being placed slowly and large orders are difficult to come by. The foreign trade market is relatively more serious for the United States.
Mr. Xu of the trading company said that recent orders are not optimistic. He said: “We mainly make imitation linen and corduroy products. The trading company The inventory is not that big, but due to the epidemic, we have done very little in the major foreign trade markets this year, especially in the United States, where there are basically no large orders. The domestic trade market is relatively saturated, and customers are hard to find. They are all small orders, ranging from tens of thousands of rice. The orders are all considered large.”
Another Mr. Tang, who is mainly engaged in the US market, also said: “The current order situation has not improved significantly. The main problem is our customer base. The epidemic in the United States is serious and Sino-US trade relations are relatively tense, so there are basically no orders now.”
From the perspective of the above-mentioned companies From the feedback, it is not difficult to see that in recent times, the domestic trade market has been relatively stable, but the share is still small, while the foreign trade market has been recovering slowly. Although the order volume is relatively scattered, the foreign trade market has shown signs of improvement, and Europe and the United States have shown signs of improvement. Order placement is relatively centralized. Of course, there are also companies that cannot receive orders. The editor believes that this is also a normal phenomenon. After all, each company has different customer groups and naturally has different needs.
Home textile product prices fell, but The profit is not much different from previous years
The low price of raw materials is also one of the topics that has been mentioned this year. The price of raw materials has fluctuated significantly and has been declining. The trend has made it difficult for gray fabric prices to rise. As can be seen from the table below, since January this year, the prices of various polyester filament products have dropped by more than 26%. At the same time, home textile products have also declined to varying degrees, but most companies report that their profits have been maintained well, with basically no significant decline, and they are mainly stable.
Mr. Xu said: “The price of raw materials has dropped this year. , resulting in a decline in product prices, by about 7%-8%, but profits are about the same, mainly because raw material prices have dropped more, gray fabrics are cheaper, and profits can be maintained.”
Mr. Jiang, who specializes in corduroy, imitation linen, and suede, also said: “Although home textile orders are a little worse than in previous years, there is still no problem in maintaining capital. The price has indeed dropped, mainly because The price of raw materials has become cheaper. Compared with previous years, the price of corduroy and imitation linen is 0.5-0.8 yuan/meter lower, but the profit situation is not much different from previous years.”
Since then Judging from this survey, the home textile market this year is indeed much better than the clothing market. The reasons for this phenomenon are as follows.A few points:
The production capacity of the home textile market is smaller than that of the clothing market
Compared with clothing products, the market threshold for home textile products is higher and the production capacity is relatively small. Therefore, when most clothing products are unsalable, as long as the market situation in the home textile market relaxes, goods will be sold out.
Real estate develops steadily
The impact of the epidemic on sales prices in the real estate market The overall impact was limited and house prices recovered very quickly. In particular, major central cities such as Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong have very strong housing price resilience, and the performance of regions such as the Yangtze River Delta and the Greater Bay Area is also very strong. After a brief dip in real estate sales, the recovery was rapid and exceeded everyone’s expectations. Therefore, the demand for home textile products is also widespread.
Foreign residents have higher demand for home textiles than clothing
This year, many foreign clothing companies have closed down, and clothing stores are not allowed to open during the epidemic. However, many large supermarkets are still open during the epidemic, so their sales have not decreased much, so there is still a certain demand for home textile products. . Foreign residents mostly use home textile products for one-time use, especially due to the epidemic, which has accelerated the update of home textile products by foreign residents.
September has now entered. Double Eleven, Double Twelve, and Christmas season stockings are just around the corner. It remains to be seen how the home textile market will develop next. Although market participants believe that due to the second outbreak of the epidemic in many countries, the market will not be better than in previous years. However, from the perspective of domestic trade and the sales data of previous e-commerce seasons, home textile products may also be stimulated this year. .
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