Recently, the editor heard from a local textile boss about something “unfair” to the weaving factory.
“There is no market this year. The customer ordered us not to take away the goods. He asked us to protect them from dust and prevent the spandex from breaking. We will try to pay part of the money next year. The loss must be borne by both parties. This cloth was still said in the factory. If it breaks, who will be responsible when the customer picks it up? The factory said it was customized by your customer and did not take it away. The customer said, I haven’t taken it away yet. If it broke in your factory, the protection will be lost,” said the textile boss.
In order to prevent himself from losing money, the weaving boss could only arrange the goods properly, cover them with dust covers and find a ventilated and dry place to supply them.
In November, when orders are missing, both weavers and traders are humble. Everyone is trying every means to get more orders. Now, what they are more afraid of than losing money is the lack of orders.
As the end of the year approaches, business is hard to do
“Basically I have not made any money this year. Since the epidemic, the demand has decreased. Small-scale factories like ours with regular production and variety cannot receive many orders at all. The products and products are not as good as those of large manufacturers. The prices are not comparable. Some orders can only be It’s okay to take a loss and clear the inventory, but if the fresh blanks are really weak,” said a textile boss who specializes in conventional products.
Compared with traders and weavers, weavers will definitely have a harder time than traders this year. Many weaving manufacturers not only have to bear high costs, but also have a lot of inventory pressure. Last time, a weaving boss mentioned that 50 The 10,000-meter filament was broken, and the customer bid 4.1 yuan/meter. The manufacturer lost 0.3 yuan/meter in production, and the ex-factory price was 4.05 yuan/meter. In the end, the trader made a profit of 0.05 yuan/meter. In previous years, we sold goods at a loss, but this year we are also producing at a loss. The market environment is not as good as in previous years. It is already good that the factory can start production. You can imagine how difficult life is for weavers this year.
What is more troublesome than receiving orders is payment collection. The overall environment is poor, and the situation of customer payment collection is not as good as in previous years. “Our customers who used to pay monthly are now delayed for one or two months. It is difficult to collect payment this year. It is approaching the end of the year and it is another fierce battle.” said a textile boss who mainly deals in spot goods.
Difficulty in collecting money and high financial pressure
Those who sell goods usually pay in cash and get paid quickly. Generally, the money is paid in one hand and delivered in the same hand. The order is usually rarely paid immediately. You pay part of it first and then pay the part after delivery. If you are tight, you will have to wait. Even if you make money, you can’t put it into your pocket right away. Coupled with the difficulty of collecting money later, weaving manufacturers are under greater financial pressure.
The profits of textile bosses are gradually diluted by pressures such as costs, market conditions, and payment collections. It is not easy to reduce profits again and again just to reduce inventory and return funds. As the end of the year approaches, the shipment of gray fabrics has slowed down, payment collection may be extended, and there will be fewer and fewer customers paying in cash. Some textile bosses have long said that it will be difficult to get payment this year, because the epidemic is not only a bad situation in the textile market, but also the upstream and downstream of the weaving industry are having a hard time. Money is not tight, so the payment of goods can only be delayed again and again. In a vicious cycle, life for textile bosses will only become increasingly difficult.
In the past, money was still floating around, and they would not take a holiday until the money was paid back. However, this year many textile bosses had already planned to take a holiday. Knowing that it would be difficult to collect money, they simply “slapped it” and reduced their pressure on inventory. You can only ask for money slowly.
Generally speaking, weavers, traders, clothing merchants, and raw material merchants are all having a hard time this year. The overall environment is not satisfactory. To use the words of the textile boss: With my own efforts, I can’t do anything. You can’t change, you can only take one step at a time.
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