Six months later, the early hot market gradually subsided. The editor went around the market and asked many textile people, and came up with a word – boiling frogs in warm water.
“Boil the Frog in Warm Water” Quotes
The market situation has been very ups and downs this year, from being extremely hot since the beginning of the year, to being quiet in 4 months, and then to5After months of warming up, after 6 months, the textile market began to “boil the frog in warm water”.
To say that there are no orders, it’s not that there are no orders at all. Summer fabrics like imitation silk still have a certain sales volume, but in terms of hot items, there are really not many.
More importantly, the profit is not high. Regular gray fabrics can be purchased at cost price or even at a loss, and the profits of some custom-woven products are not as high as before. The same is true for fabrics. Old customers have lowered prices, and new customers have also lowered prices. Domestic trade has lowered prices, and foreign trade has also lowered prices. Small brands have lowered prices, and big brands are now also lowering prices.
There are few large orders, many small orders, and low profits. If you don’t do what others are rushing to do, you will end up working for a long time but not making much money. The current market is like a frog boiled in warm water.
“618” is here, but the order is not here
The “boil the frog in warm water” market needs a hot spot, a big order, a shopping festival. The popularity of May Day has greatly increased the sales data of home textile fabrics, which is very surprising. Textile people naturally have high hopes for the “618” that will follow May Day, hoping to bring another wave of orders.
However, after the “618” started, consumer electronics categories were still the best sellers, and in terms of clothing, Fila , Li Ning, Nike, Anta and other brand clothing sales are better, which is in sharp contrast with last year.
Previouslya few years ago,clothing, as a category with higher gross profit, was heavily promoted during 618 and Double Eleven events. The main force, nowThis year, clothing manufacturers are not very enthusiastic about participating in promotions, and some varieties have even given up promotions directly.
Why is the current textile market becoming more and more dull, with fewer and fewer hot spots?
Inventory is too high, popular items are hard to come out
In recent years, a large number of viewers have flocked to live broadcast channels. In order to attract customers, many live broadcast rooms choose to sell clothing at low prices and in large quantities on weekdays. Many of what should be bought have already been bought.
Although there are various discounts and coupons during the current shopping festival, in the end, compared with the usual promotional prices, they are not much different.
Moreover, the rise of e-commerce live broadcast has also brought about the spot quick return model and the matching spot supermarket for fabrics. Although it is a spot supermarket, it has a somewhat futures effect. By accumulating inventory that cannot be absorbed by the market, the supply of conventional products will almost always be in excess. Many orders used to need to be stocked in advance, but now that there is a quick return, there is no need to stock up so much goods, and the speed is naturally faster. It is difficult to have a situation like in the past when some regular items are sold out and the price is in excess. It’s hard to rise even if it’s down.
Too much capacity, too little demand
The bigger reason lies in production capacity and demand. From time to time, the editor has seen news recently about some big brands investing hundreds of millions of yuan to establish industrial bases in the central and western regions. From 2018 Since the beginning of 2009, the production capacity of looms and fabrics in the central and western regions has grown rapidly. Although the traditional textile clusters on the southeast coast are reducing production capacity, the rate of production capacity reduction is far slower than that of growth.
While production capacity is growing, demand in the traditional textile market is weakening. Everyone knows what is going on in China. Consumers are more willing to hold money in their hands than to consume at this stage; traditional market demand in Europe and the United States is also shrinking. If China’s exports may be affected by policy factors, then Vietnam’s exports are even more comparable.Overall, Vietnam’s exports in the first 5 months of this year decreased by 11.6% to1361.7 billion US dollars, Insufficient orders, so we often see large layoffs in large OEMs in Vietnam news.
Last year, domestic textile people were envious of Vietnam. Who would have thought that the Vietnamese market would be like this in less than a year? It is really sad.
Accumulate strength and become a blockbuster
Today’s market situation seems to be like “boiling a frog in warm water”. In fact, textile companies with pursuits have begun to exert efforts in visible and invisible places.
In terms of hardware, textile companies have begun to accelerate the replacement of looms in recent years, and old machines have made great progress in intelligence, efficiency, energy saving, etc.; in terms of software, fabric companies have begun to proactively connect design and fashion resources. , weaving companies are also optimizing their management models.
Three years without flyingIf you fly, you will soar to the sky; if you don’t sing for three years, your singing will be astonishing. The editor believes that the current tepid market will not be quiet for a long time. Textile companies have accumulated enough strength and will be able to make a splash when the time comes.
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