Recently, the circle of friends of textile friends has become like this:
When Customer Inquiry
When cooperation is established
When in arrears Payment
Or this:
I am poor
2 years later…
Still poor
Or this:
Tianjingsha·Dongyue
Spinning cotton spinning,
dying and hot stamping printing,
polyester Oxford hemp.
The market is going down,
Heartbroken people are marking.
The current overall performance of the weaving market is unsatisfactory. Although the arrival of cold air has definitely contributed to the transaction of cold-proof clothing fabrics, this year’s cold air arrived later than in previous years, and its boost to the market is really limited.
A gallbladder manufacturer said that this week’s shipment volume has increased compared with last week, especially 290T polyester taffeta, which is more prominent; another imitation memory manufacturer said that this week Hundreds of thousands of meters of goods have been shipped one after another, and the inventory in the factory is declining…
However, this wave of market conditions has not given the textile people a “reassurance”. Faced with the increasing number of executable orders in hand, There are fewer and fewer people coming, and there is no sign of orders for next year. Most textile workers are still “uneasy”!
“We currently have very few orders left. After shipping this batch of goods, I will start to collect payment. However, this year’s payment will probably be more difficult than in previous years because our customers have not received it yet. They also say they have no money!”
December is supposed to be a good day for a good harvest, but for textile workers this year, it is covered up by the word “sorrow” .
“Recently, the bosses are all in the same pace. Those who have orders make orders, and those who don’t have orders start to ask for debts.” A cloth boss said. After all, as the saying goes, “Money is hard to make, debt is hard to collect.” Some people say that debt collection is a required professional skill for textile workers, but in the end many people may not be able to get over it.
At this time last year, a sad word about Boss Bu asking for debt was still fresh in my mind——
“Say too much I’m in tears. My sales this year reached 10 million, but I still have 5 million in receivables that I haven’t gotten back yet. The money is either floating outside or being recorded in the ledger! It’s either in the pockets of customers or in the workshop. Producing!” – said Mr. Chen, a textile boss in Wujiang.
Debts come up every year, but this year is especially difficult! Because the downstream clothing industry is not having a good time either!
In the words of this year’s Bu boss: “This year it’s not that customers refuse to pay for goods, but that customers’ money is still floating around with their customers, where does the money come from!”
This is indeed the case. Nowadays, whether it is a small clothing factory or a large brand company, inventory problems are common in the entire clothing industry.
For example, Xinhe Co., Ltd., a women’s clothing company, stated in its IPO prospectus that the company’s overall sales have shown a downward trend in recent years, from a peak of 2.9144 million pieces in 2014 to 1.912 million pieces in 2018. Even though Even if the average price of products rises, it still cannot avoid the fate of declining revenue. In addition to shrinking sales, Xinhe’s inventory problems also caused problems for its operations.
At the end of each reporting period, the company’s inventory book balances were 640 million yuan, 712 million yuan, 882 million yuan, and 885 million yuan respectively, accounting for 41.91%, 45.55%, 58.92%, and 58.92% of current assets respectively. 62.77%, among which, the balance of finished products with a warehouse age of more than 1 year are 351 million yuan, 352 million yuan, 382 million yuan, and 412 million yuan respectively. At the end of each reporting period, the company’s inventory depreciation provisions were 196 million yuan, 252 million yuan, 287 million yuan, and 288 million yuan respectively, accounting for about one-third of the inventory book balance for the year.
Xinhe Co., Ltd. is not an exception in the industry. In recent years, as long as you are in this industry, almost everyone has the problem of excessive inventory, which has led to the clothing segment being in a stage of vigorous destocking, and the fabrics purchase intention is not strong.
In a garment factory in Changshu, it was supposed to be the busiest season. But this year, the performance was particularly “leisurely”. The relevant person in charge said that originally the clothing industry also talked about gold nine and silver ten, butThis is no longer the case in the past two years. Nowadays, there are not many orders in the factory. Originally, one process only required 2 workers. Recently, 7-8 people are doing each process. This year, the workers can’t make any money, and neither can the boss, so the factory doesn’t dare to stock more goods. Generally, we will cut as many pieces as the customer orders. Next year is expected to be very stressful!
The apparel industry itself has large inventories and poor demand, so as its upstream The fabric industry is even more miserable! The phenomenon of “triangular debt” in which customers owe money to fabrics because they have no money themselves can be seen everywhere.
“Last year, we only dealt with new customers in cash, and we would get the goods when they paid. But this year, the factory has too much inventory, so we have relaxed our requirements for some orders, and if we owe some money, we will get the goods first. But now We will also start to have headaches, and the difficulty of collecting accounts will increase.” Mr. Li of a company that mainly sells pongee products said helplessly.
Of course, there are a few companies that still adhere to the concept of “cash is king” and are relatively strict in customer screening. “Business is not doing well this year, and profits are already relatively low, so we would rather not accept some orders, fearing that we would not get back the money if we accept it.”
For enterprises, funds are the key to their survival and development. If a company’s cash flow is tempered or tied up, it means that the company’s blood has been drained, and the company’s operating risks will rise sharply. In the textile industry, many companies will fall into the dilemma of “difficulty collecting debts”. If they are not careful, years of hard work may be wasted.
In short, it is not easy to develop customers, it is not easy to maintain customers, and it is not easy to be a textile person. If you can give it, don’t delay it!
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