Recently, my friends have been discussing why the weather is not cold yet, and there is no chance to wear the newly bought sweaters and coats! The textile workers are also worried about the cold weather. After all, they have to rely on the weather to “eat”. The warm winter will affect the sales of winter clothing and the inventory of enterprises, thus slowing down the circulation speed of the entire textile market. This chain reaction is clearly reflected in this year’s textile market.
Why is the demand for downstream down jacket fabrics shrinking?
The boss of a trading company that specializes in down jacket fabrics revealed that in the past, the single volume of nylon spinning could reach millions of meters, but this year, the single volume is only hundreds of thousands of meters. This year’s Chunya Textile only had tens of thousands of meters of orders in the first half of the year, and not even one meter in the second half of the year.
Coincidentally, the person in charge of a nylon gray fabric factory with more than 200 looms told the editor that the volume of nylon woven goods this year has been reduced by half compared with last year. At present, The factory has about 45 days of inventory, and orders are coming in one after another, but the shipment volume is not large and cannot keep up with the production speed.
It can be seen that the demand for down jacket fabrics has shrunk significantly this year, and the weather has not turned cold yet, which has greatly affected the sales of down jackets. On the other hand, the serious backlog of down jacket inventory not only takes up funds, but also limits the production of new down jackets by clothing companies, and also leads to a reduction in demand for down jacket fabrics. The old style down jackets are not very attractive to consumers, and the warm winter climate makes consumers reluctant to buy them.
Not only down fabrics, but also gallbladder fabrics have also been affected. According to feedback from China Silk City Network’s visits to gallbladder companies, the sales volume of gallbladders this year is not satisfactory. Some companies even have tens of millions of meters of inventory, and the price has dropped by about half compared with the beginning of the year.
Why did down jacket sales increase by 186% during Double Eleven?
Previously, the sales of down jacket fabrics were not ideal. After the crazy market in 2017, what was left for clothing factories was a mountain of clothing inventory, which had a greater impact on down jacket brand companies. If clothing stores cannot sell down jackets, they will no longer be able to purchase more clothing. Garment factories will accumulate more inventory, which naturally reduces the demand for downstream down fabrics. In such an interlocking supply chain, any problem in any link will affect the entire industry.
Clothing sales statistics for Double Eleven have not been released, but data show that in fast-moving consumer goods and department stores, where Suning is focusing its efforts, sales of down jackets increased by 186% year-on-year just 20 minutes after 0:00. As of 1 a.m. on Double 11, consumers in Guangdong, Zhejiang, and Jiangsu ranked among the top three Chinese provinces in terms of Tmall order amount. In 2019, Tmall’s Double 11 sales reached 84 brands, including Uniqlo, Bosideng, etc.
“Double Eleven” is actually an e-commerce festival, and it is also a good time for clothing factories to clear their inventory, so down jackets are heavily discounted. Although the weather is not cold, many consumers have a hoarding mentality due to the large discounts, so they will buy one or two pieces for emergencies. This explains the reason why sales of down jackets still increased significantly during Double Eleven.
Can orders for next spring and summer be promoted after Double Eleven?
After “Double Eleven”, it is also the time to start spring and summer orders. According to the past, clothing stores can launch spring clothing after the Chinese New Year, that is, in February. There are only about 3 months of production time left from now, and the production of fabrics must be completed before the Spring Festival, so this is a good time to place an order quickly.
After a wave of down jacket purchases during Double Eleven, the inventory of clothing companies has been relieved to a certain extent, and companies may gain the impetus to produce new orders for next spring and summer. With part of the inventory disposed of, clothing companies have recovered their funds and have more funds to start orders for next year. In addition, the weather also plays a major role in promoting orders for next year. Warm winter may extend the spring time, and consumer demand for spring clothing may also increase. The demand for spring and summer orders next year is expected to increase.
In general, the editor believes that after “Double Eleven”, orders will be launched in the spring and summer next year, and there is a high possibility that the order volume will gradually increase, and a wave of orders will be ushered in. But it does not only depend on Double Eleven sales, but also needs to pay attention to consumer demand and the textile environment next year. The above is the editor’s personal opinion and is for reference only.
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