In the blink of an eye, more than half of November has passed, and the annual shopping festival “Double Eleven” has come to an end, but holiday expectations have quietly been put on the agenda of textile people. You must know that at this time in previous years, everyone was still actively replenishing orders and stocking up for the “Double Eleven” and “Christmas Season”. Things like holidays were only considered before the year ago. With this question in mind, the editor randomly interviewed several companies…
New orders are weak, and if there is nothing to do, it is better to take a holiday early.
In the past, the public image of textile workers was that they did endless and high-intensity hard work. “Counter shifts” and “three shifts” occupied at least 300 days out of 365 days of textile workers’ lives. But looking back on this year, many textile workers have lived the life of civil servants, and “double holidays” and “statutory holidays” occur from time to time.
In addition to external reasons (such as high temperature power cuts, environmental protection rectification, etc.), some of the reasons for this phenomenon stem from the lack of optimism in the order performance of textile companies themselves.
A certain elastic fabric company said that business is not doing well this year, and there are also many fewer trucks pulling goods on the market than in previous years. The overall order volume during “Double Eleven” was not as good as in previous years, and orders during the “Christmas Season” also “shrunk” a lot. If there are no new orders added, we may prepare for a holiday after completing the orders on hand at the end of November. On the one hand, we can effectively control the expenditure on labor costs, and on the other hand, we can also arrange for payment arrangements early. Only by collecting the payment in a timely and effective manner can we better plan for next year’s production and operation. Unless there is a major positive trend in the subsequent market trends this year, there will not be much improvement.
Another company that specializes in outdoor clothing revealed that it regretted making an outdoor down jacket this year. Originally, the sales of this outdoor long down jacket had been very good, so it specially purchased a batch of fabrics made by a Shanghai foreign trade company and prepared to sell this kind of outdoor down jacket. The down jacket was made into a high-quality model, but who would have thought that this piece of clothing would be “unsaleable”, costing more than 100,000 yuan, which makes me cry. I have no choice but to sell it slowly…
These seemingly helpless words may be the current situation faced by most small and medium-sized textile companies. When there are really no orders, it may be a better choice to control inventory and cash flow.
There are many varieties and miscellaneous categories. It is better to have a list than not to have one.
Looking back on the holiday situation last year, it is not difficult to see that textile companies are really having a hard time this year. Before last year, textile companies also ushered in a wave of “closed business”, which caused the holiday time to be postponed again and again. However, this year’s holiday time seems to be advanced again and again.
It can be seen from the monitoring data of Silkdu.com that starting from mid-October, the operating rate of weaving enterprises in the sample has steadily declined. The rate of large orders placed in domestic and foreign markets is extremely limited. “Double Eleven” and Christmas orders are scarce. Weaving factories are less motivated to produce. The start-up rate has dropped to 65.3% in mid-November.
As can be seen from the figure, the start-up rate after mid-October is a bit miserable compared to previous years, and has become a periodic low in the past years.
A weaving company said that because the company has long-term and stable foreign trade order support, the current orders in hand can be maintained until about mid-December. Overall, the overall order performance was pretty decent. However, the order volume in October dropped by about 60% compared with the previous months, which is a deviation compared with previous years. In terms of the current operating rate, the operating rate of air-jet looms is about 50%, and there are relatively few orders, mainly cotton cloth orders; the operating rate of water-jet looms is about 90%, and the orders are relatively miscellaneous, including Oxford cloth, four-way elastic, tent fabric and other varieties. If there is a holiday, it should not be arranged in advance, and the time should be similar to previous years.
From this point of view, a stable source of orders is the basic condition for the operation of textile enterprises. In the current sluggish environment, it is particularly important to maintain a good customer base and make every order well.
Postscript:
Under the current situation, most textile bosses are not very optimistic about the market outlook. There is no major benefit in the market, and they may start holiday mode after completing the orders in hand. There are still more than two months until the Chinese New Year. During this period, questions such as whether there are orders, whether to make orders, etc. may come one after another. There may be more and more multiple-choice questions that require weighing profits and costs…
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