July is the weakest month in the off-season. It is neither busy with orders in June nor stocking up for the peak season in August. For textile workers, July is also the most “difficult” month of the year. moon.
Rising inventories
“The inventory in July has definitely increased. There are about 10 million meters of inventory now, half of which are weaving orders and half of which are weaving inventory.” Mr. Xu, who owns 400 looms.
“The inventory this month has increased a lot compared to last month, and the fact that we sell spot goods has no actual impact. Anyway, if we stock up, if someone wants it, we can just sell it out.” said Mr. Huang of the spot supermarket.
“Inventory increased in July, 5% more than last month.” Mr. Chen, who owns 300 looms, said.
“There will definitely be a lot of inventory this month, but currently we have no plans to stock up more, so we will maintain the status quo.” Domestic Trade Manager Yan said.
Through visits, basically all textile bosses said that the current inventory has increased compared with last month. According to the inventory days of sample enterprises monitored by Silkdu.com, it can be seen that the inventory of local textile enterprises has increased significantly. It is currently around 36.2 days, which is the same as the previous month. Compared with the same period last month, it increased by about 1 day. In the off-season in July, orders have significantly decreased. Weaving manufacturers that can weave half of the inventory and half of the orders are already doing well.
Decreasing orders
“The current order situation on hand is not very good; there are not many domestic trade orders and foreign trade orders recently; the autumn and winter fabric market has not started yet; there are no hot-selling varieties.” said Mr. Huang of the spot supermarket.
“Orders can reach the end of July, which is about 10% less than last year, and there are more domestic trade orders. The fabric market in autumn and winter is not very good.” Mr. Chen, who owns 300 looms, said.
“Orders are average, they are all second blanks, and there is no profit. They are worse than last year. There are more domestic trades, and they are all small orders. Autumn and winter fabrics were available some time ago, but now they are gone.” Mr. Chen, who mainly sells polyester fabrics, said.
“There are almost no trade orders, and spot goods continue to be shipped. Recently, autumn and winter fabrics are slowly improving, with more T400 and T800, with shipments of several hundred meters or several thousand meters.” Domestic Trade Manager Yan said.
Compared with June, the order situation in July is definitely going downhill. Many textile bosses said that the order situation in July was not good, and it was not even as good as the same period last year. This year, a big reason is because of the decrease in foreign trade orders and the decline in the domestic demand market. Oversaturation has reduced demand in the foreign trade market, which has greatly reduced the issuance of market orders. It is said that 30% depends on domestic demand and 70% depends on foreign trade. Now that foreign trade demand has declined, natural textile bosses have been assigned fewer orders.
This is what they do when faced with pressure
With the arrival of the off-season, orders have dropped sharply, and textile bosses are also facing a lot of pressure. Instead of sitting back and waiting, it is better to think about how to solve these problems.
“Now there is a lot of inventory and loans have been taken out. If the inventory becomes more and more, we can only reduce production.” Mr. Xu, who owns 400 looms.
“Actually, there is not much pressure. The main reason is the financial pressure brought by the spot goods; we are currently doing short video shooting, which has played a certain role in attracting traffic. Many of the people who come to sample are people we know on Douyin.” Huang from the spot supermarket always said.
“We are mainly under inventory pressure and in terms of payment collection. We can only screen customers. If the weather gets hotter, production will definitely be reduced. Anyway, the order is not urgent. Let’s sell it at a lower price and control the inventory.” Mr. Chen, who specializes in polyester fabrics, said.
“It’s mainly due to the pressure of repayment. Although we sell spot goods, there are still people who owe money. The payment period is 2-3 months, and it can also be 4-5 months.” Domestic trade manager Yan said.
The current pressures are mainly in inventory, repayment, and funds. Of course, these are also what textile bosses have been confused about all year round. In the face of inventory, they can reduce prices or reduce production, and funds can be borrowed, but repayment cannot be decided by themselves. Of course, doing business is not always smooth sailing. The courage to face difficulties is the most valuable.
The road ahead is difficult, but we have to do it even if it doesn’t work.
“This quarter is the off-season, and the market should turn around by the end of August.” Mr. Xu, who owns 400 looms, said.
“We are not optimistic. It is greatly affected by the off-season, and the reversal may have to wait until the fourth quarter.” Mr. Chen, who owns 300 looms, said.
“July is definitely not promising, but August should gradually improve.” Domestic trade manager Yan said.
There are many textile bosses who are not optimistic about the future market. However, the off-season means there are no orders and no market. It is normal to reduce production and take turns in hot weather. Although the off-season is terrible, there is hope for the future.
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