After the new year, as clothing stores gradually put on the agenda to launch new spring clothes, major clothing wholesale markets have begun to “crowd people” mode. A women’s clothing blogger couldn’t help but lamented in a post that “the women’s clothing economy is recovering and the market is booming.” According to his description, the clothing stalls of Thirteen Lines are booming, with “10,000 pieces shipped a day” and “sold out” and other situations happening one after another.
In fact, in addition to the above-mentioned clothing market, the performance of Sijiqing Clothing Wholesale Market is equally impressive. Some merchants even said that “more than 1,000 orders are placed in a day”, and they have no time to rest, let alone eat, and they are so busy that they are “flying”!
Behind the frequent good news in the clothing wholesale market, what is the situation of the fabric market?
Spring and summer fabrics are out of stock, and fabric market inventories are declining
With the above questions, the editor interviewed a trader who specializes in women’s clothing fabrics. According to him, as the market slowly recovers, orders for spring and summer-related fabrics have gradually increased, and sales of women’s clothing fabrics have been particularly impressive. Among them, a fabric named “SPH” sells very well, and customers make inquiries and purchases frequently. It feels like supply exceeds demand.
It is understood that SPH fiber is a new type of elastic fiber. Its stretch resilience is close to spandex, and its elasticity durability is better than spandex. Compared with ordinary polyester fabrics, SPH fabrics are soft, fluffy and elastic, easy to dye and have high color fastness. They are mainly used to make spring and summer shirts, skirts and trousers.
According to monitoring data from Silkdu.com, as of February 10, the inventory days of weaving companies in the sample dropped to about 35 days, a significant decline from last week. As spring and summer thin fabrics have shown a small-scale increase in volume, thin forced-twisted and false-twisted imitation silk fabrics have been more actively traded recently, causing the market’s gray fabric inventory to be digested and showing a steady downward trend.
Suppressed by the huge inventory of the spot market, today’s market transaction logic is slowly changing. Preparing and distributing goods in advance has gradually been replaced by placing orders on demand. Although the hot sales in the downstream clothing wholesale market did not immediately affect the fabric side, as the popularity of clothing sales continues, it may only be a matter of time before “small batch, multi-batch” fabric replenishment orders arrive.
Orders have begun to recover, and the operating rate has gradually picked up.
In the past three years, due to the impact of the epidemic, the macroeconomy has not been optimistic enough and various uncertainties have occurred frequently, resulting in continued weakness in terminal demand. Under the clouds, consumers’ desire to buy clothing has been greatly reduced. After the adjustment of epidemic prevention and control policies, the long-suppressed consumption enthusiasm has been released. This Spring Festival has given us a deep understanding of the power of “retaliatory consumption”.
Against this background, various clothing stores have launched new models for spring clothing after the holidays, and it seems reasonable to see a hot scene in the clothing wholesale market.
According to monitoring data from Silkdu.com, during the resumption of work and production stage, affected by the acceptance of orders and the arrival of employees, the operating rate of looms in Jiangsu and Zhejiang has experienced a period of slow recovery. However, as time goes by, the employee attendance rate is gradually guaranteed, some companies have received new orders for spring and summer fabrics, and the increase in the start-up rate of weaving companies in the sample has expanded visibly.
According to a weaving company, after the resumption of work and production, the company’s production operations have gradually entered a regular stage, and the current operating rate has reached 100%, which is much higher than the same period last year (last year, only two-thirds of the machines were operated). The current orders are composed of some orders that were not completed before the year and orders for spring and summer fabrics that will arrive after the year. The spring and summer fabric orders are mainly large orders, and the products are mainly women’s spring and summer fabrics and windbreaker fabrics, accounting for 60% of the total orders, an increase of about 30% compared with the same period in previous years.
It can be seen from this that the hot sales of spring and summer clothing have a boosting effect on weaving companies. In the future, if orders are sufficient, the operating rate of weaving enterprises will accelerate its recovery.
Postscript
It’s now mid-February, and it’s getting closer and closer to the traditional peak season of “Gold, Three and Silver”. Judging from the feedback from enterprises, the gradually decreasing inventory of gray fabrics and the steadily increasing operating rate seem to indicate that the market has slowly improved and entered a recovery cycle. However, in general, the market is still under strong expectations and weak reality, and the wait-and-see sentiment is still strong, so we need to be cautious when hoarding large quantities of goods.
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