At present, most textile companies have ended the long Spring Festival holiday and have begun to resume work and production in an orderly manner. Clothing companies such as Hangzhou Sijiqing have also started online clothing sales. Spring and summer clothes are selling well, but supply is tight.
Spring and summer clothes have already been sold well. How is the resumption of work of downstream weaving companies and trading companies? The editor below will answer it for you.
Q&A
What is the resumption of work of downstream weaving companies and trading companies?
Currently, the production capacity of weaving enterprises in Jiangsu and Zhejiang is low, and the operating rate is only 10-20%. The comprehensive resumption of water spraying and texturing in Wujiang area is still around 10%; the resumption of warp knitting in Haining area is around 30%; the comprehensive resumption of circular knitting and texturing in Xiaoshao area is around 10%. At present, there are still restrictions on the conditions for returning to work in various places, and the situation of workers arriving at work is relatively severe. From the 20th to the 29th, there will be a wave of concentrated workers arriving at work and equipment resumption. It is expected that the comprehensive resumption of work by the end of the month will be between 30% and 50%.
It can be seen from the above operating rate that the new coronavirus pneumonia epidemic has brought a lot of losses to the textile industry, and an economic defense war has also begun as companies fully resume work. So is the impact of the epidemic on the textile market short-term or long-term? Regarding this issue, there are also different voices in the market.
The impact of the epidemic on the textile market is long-term
Some textile people believe that the shutdown caused by the epidemic The impact is long-term, with the national economy declining and demand for clothing further weakening.
One
Under the epidemic, clothing business is closed
Originally, the sales of winter clothing in the second half of 2019 were not smooth due to the mild winter and the market downturn. In previous years, the Spring Festival was a good time to increase sales and reduce inventory. However, this year due to the impact of the COVID-19 epidemic, clothing stores have suspended operations, and e-commerce sales have basically ceased operations due to logistics outages. Winter clothing sales are gradually going further and further away from inventory!
二
The epidemic affects income, and clothing consumption weakens
Under the new coronavirus epidemic, the national economy has been affected, and people’s income may follow it. Clothing consumption expenditures have also declined. The proportion may be reduced. That is to say, the demand for clothing this year may weaken again compared with 2019, which means that the downturn will continue to ferment.
三
Production resumes slowly, customers place orders Hesitation
For downstream trading companies and weaving companies, the quality of the market depends on the number of orders placed by customers. Although companies are currently recovering one after another, not many companies are actually putting into production, and production capacity is low. Even if there is an order, it is difficult to deliver the goods as scheduled, so clothing customers are afraid to place large orders.
A workshop director of a printing and dyeing factory in Wujiang said: “The market this year is definitely not as good as last year. The new coronavirus pneumonia has not yet completely ended. During this period, it may still be worse.” There will be holidays and production shutdowns, so it will definitely have an impact on our factory production, and it will be difficult for us to guarantee timely shipments.”
The impact of the epidemic on the textile market is only short-term
Some textile people believe that the impact of the epidemic on the textile market is only short-term, and production will return to stability after the epidemic. The market will usher in a rebound later.
One
The spring and summer clothing sales season meets the traditional peak season of March
Resumption of work at the end of February, production and life are gradually returning to normal. Winter clothes have become “cool”, but spring and summer clothes are a good time to sell. The new spring and summer clothes that have been launched in the clothing wholesale market are all produced years ago. Once sales increase, clothing manufacturers will definitely place orders quickly. Especially March, which is about to enter the traditional peak season, is also the peak period for deliveries. It is inferred that the downstream weaving trade market will usher in a wave of market conditions.
二
The suppressed clothing demand in the early stage will be released in a concentrated manner
The suppressed clothing consumption demand in January and February is likely to be released in a concentrated manner after the epidemic is over. Never underestimate a woman’s ability to “buy, buy, buy”! After a month-long “confinement” holiday, girls’ happiness in “buying, buying, shopping” has been suppressed for a long time. The possibility of this emotion bursting out after the epidemic recovers is not small. The editor, who is also a girl, feels the same way and wants to invite three or five friends to “go shopping”! Women have always been the main consumer in the clothing industry, so the power of this wave of “post-catastrophe” purchases cannot be ignored!
三
Production and sales are derailed, and clothing is expected to be destocked
Once clothing sales increase, production and sales will be derailed. At this time, the tens of millions of clothing inventory accumulated in the warehouse will have a chance to be digested. Although they are last year’s styles, some classic styles are timeless and still have a market for sale. By then, the inventory of clothing will be loosened, and manufacturers will be able to mass-produce and prepare stocks. Therefore, it will also have a certain promoting effect on the market in the second half of the year.
A weaving boss who has been deeply involved in home textile fabrics for more than ten years analyzed: “I personally think that after the epidemic is over, the market will It will be depressed for a while, but it may rebound next. I experienced it during the SARS period in 2003. At that time, the first half of the year was very bad, and then there was a wave of market conditions in the second half of the year. After all, after the epidemic, the clothing and home textile products of the people in the epidemic area Some will be replaced, which will bring a wave of demand.”
The editor thinks that both of the above views have some truth, but no matter what the future market is like, textile companies should do a good job in improving the industry Value and product quality, making the products produced by oneself irreplaceable, and trying one’s best to implement a diversified market strategy, will be able to deal with various sudden risks.
Finally, please cast your valuable vote for your views on future market conditions!
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