The arrival of November means that the “Silver Ten” has sadly left the market, and this round of market conditions has not been able to get the textile industry out of trouble.
Judging from market performance, large-volume orders did not arrive as expected. Although most companies have received orders, they generally only last for about one month, and the order maintenance situation is not optimistic enough.
“I heard that everyone’s situation this year is barely enough, and we don’t feel the peak season. Maybe it’s because the varieties we make can be sold all year round, so there aren’t too many ups and downs.” The person in charge of a weaving workshop said with emotion.
All we did were orders, but the customers didn’t pick them up.
The above-mentioned company is a weaving company mainly engaged in four-way elastic fabrics, and it mainly focuses on making orders on a daily basis. At present, the inventory days of gray fabrics have reached more than 45 days, and due to the average overall shipment volume, the inventory is still on the rise.
What is even more surprising is that the vast majority of this inventory comes from customer orders. Some customers only take away part of the goods during the delivery stage, and the rest can only be temporarily stored in the warehouse. It is understood that there are even residual gray fabrics from last year’s order.
Monitoring data from Silkdu.com shows that as of now, the inventory days of gray fabrics in weaving enterprises in Jiangsu and Zhejiang samples are 35.4 days, which has increased by 0.6 days compared with the previous low.
As can be seen from the chart above, since the beginning of this year, the inventory days of gray fabrics of weaving companies in the Jiangsu and Zhejiang samples have fluctuated around the moving average (35.5 days), and the overall trend is indeed a bit “smooth” compared to previous years. Based on data analysis alone, the reason why this inventory days can remain stable is most likely the result of the combined effect of two factors.
On the one hand, because market expectations are not optimistic enough, most weaving companies would rather reduce production than rush to produce inventory; on the other hand, with the advent of the era of rapid response, some gray fabrics will be transferred to spot companies and continue to exist in the form of finished product stocking.
Therefore, no matter what form of inventory is, it is like a “time bomb” for textile enterprises. Inventory that cannot be realized in time will not only occupy the enterprise’s capital chain, but also bring more uncertainty to the enterprise.
The time limit for repayment is agreed upon, and extensions are common.
Since funds are mentioned, the issue of repayment must also be discussed.
Accounts receivable is a long-standing problem in the textile industry, especially at the end of the year, when collection of accounts becomes a top priority for enterprises. By then, debt collection dramas will be staged one after another. It is no wonder that textile bosses will call “the account has been settled and the payment has been remitted” as the most romantic thing imaginable.
Looking at the entire industrial chain, weaving companies are undoubtedly a weak link. Because almost all of its downstream enterprises sell on credit, but they need to pay in cash when purchasing raw materials. In this way, the weaving enterprises will undoubtedly “take the biggest blame” and “take the most responsibility”. Once problems arise, Accounts receivable can easily turn into bad debt losses.
According to the person in charge, the pressure on repayment is really high now, mainly because the repayment speed is too slow. Although our repayment period is finalized with our customers in advance, once the repayment period (3 months) comes, some customers will always put it off again and again. It is lucky to be able to clear the account on time. More often than not, they want it. Extend the billing period again.
Preliminary research shows that whether it is traders or weaving companies, the payment collection period has generally been extended this year. In previous years, the payment collection cycle was generally 1-3 months. This year, the payment collection cycle of textile companies is concentrated around 3 months. The extension There are also many people there who are half a year old.
It can be inferred that as the payment collection cycle lengthens, the difficulty of collecting accounts receivable this year will also increase accordingly.
Judging from the current situation, the influence of the traditional peak season on textile enterprises is not as good as before, and the boosting effect brought by consumption nodes such as “Double Eleven” is also relatively limited. Coupled with the emergence of many uncertain factors such as climate abnormalities, the textile industry Enterprises still need to keep a close eye on their “money bags” to ensure that they are safe.
</p
