“Three more foreign trade companies upstairs and downstairs have closed down. Is this a little joke from God this year?”
Recently, the editor came across a Weibo post: This week, the two foreign trade companies upstairs and downstairs have closed down. Three more foreign trade companies collapsed!
In our textile industry, examples of shutdowns and bankruptcies are common. After June, the textile and apparel market entered the traditional off-season. Compared with orders in May, most people said that there was a significant decline in orders. decline situation. With fewer orders, companies will inevitably be in a state of loss. According to the editor’s understanding, there are a lot of companies in this state, especially textile companies that specialize in foreign trade or have a large proportion of foreign trade, and they suffer the most losses. Not recently, textile people’s circle of friends has been flooded with a production suspension notice:
Reducing production, suspending production and selling goods are all helpless actions!
Before the Dragon Boat Festival, the editor once interviewed the person in charge of a factory with more than 70 looms. He said helplessly: “We have about half a loom during the Dragon Boat Festival. This month is really the longest holiday in history for our factory. We had 3-5 days off during Qingming Festival and May Day. The financial pressure at that time was not as great as it is now, but the longer time goes by, Foreign trade customers have been slow to place orders, and our cash is getting tighter. We can only take advantage of the traditional Dragon Boat Festival to give workers more holidays, so that the salary expenditure can be reduced, and the inventory can also be slightly relieved. We The inventory already exceeds 2 million meters, and because of the previous increase in raw material prices, we are using high-priced raw materials to weave low-priced gray fabrics. If we sell them according to our normal quotation, we will not be able to sell them. Since we are ordering quality, there is no way to sell the goods. There is no advantage. If the price is low, we will lose money. If the price is high, no one will want it.”
For foreign trade order manufacturers, this year is really difficult. On the one hand, the epidemic in the first half of the year has missed the best sales season in summer, and on the other hand, the inventory in autumn and winter has not been consumed. In addition, the seasonal demand for clothing is high and styles are popular quickly. Customers are becoming more cautious about placing orders. It will take a long time for textile foreign trade companies to recover orders.
During this period, many manufacturers with mainly foreign trade orders had to choose to reduce production and take holidays to relieve excessive inventory and financial pressure. As a cloth boss said: “Reducing production, suspending production and selling goods are our helpless actions. Only by getting through this order gap period can we have a chance to persist until customers place orders.”
Not only weaving factories, supporting printing factories, dyeing factories, etc. are also finding it difficult to persevere
Now it is not only the weaving factories that are like this, but also the dyeing factories that are the finishing and processing links. , printing factories, embroidery factories, etc. are all having a hard time. A salesperson from a dyeing factory said: “This time we have two days off for the Dragon Boat Festival. In the past, we would have up to one day off. If business is good, we will not have a holiday at all. In fact, compared with the holidays, we I would rather work overtime, because overtime means more business, so I get more wages. Unlike now, we basically give customers about 2 cents cheaper dyeing fees to attract them, because we are afraid that they will go to other dyeing factories. “
Similarly, another salesperson from a printing factory also felt deeply: “There are really very few orders this year. Even if there are orders, most of them are It’s a few thousand meters long, and even if it’s a few thousand meters long, the quantity is not very large. We haven’t seen orders of tens of thousands of meters for a long time, but fly legs are also meat, so it’s good to have an order.” In the off-season, At that time, the vicious competition in the market became more and more fierce. Due to the poor overall environment and the scarcity of orders, most textile companies were “not full.” In this case, in order to maintain their survival, some companies had to reduce prices, offer promotions, etc. Attract customers to place orders. As the off-season deepens, many companies with insufficient strength cannot survive and will face suspension of production or bankruptcy.
July off-season: Textile bosses work hard to hold on!
Nowadays, a large number of textile foreign trade companies have begun to switch to the domestic market for self-help. However, the domestic textile market demand is always limited, and the instant influx of foreign trade products will be difficult to sell in a short time. After digestion, the oversupply situation will become more serious, which may lead to more fierce competition in the future.
Many textile companies have to persevere even if they sell houses, cars or even borrow money. As for how long they can last, no one can say, but as long as they hold the cash in hand firmly and ensure continuous cash flow, The longer it can hold on, the more hopeful it is that we will see a pick-up in foreign trade orders!
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