Breaking news is coming, some areas in Nantong, Jiangsu have once again implemented the “dual control” policy! From November 12th to December 31st. In other words, some areas in Nantong will spend the new year with production restrictions.
Nantong is also one of the important textile clusters in Jiangsu, and the textile industry chain will inevitably be affected. The editor knows many textile bosses with factories in Nantong. Some of them cried to the editor that production has been restricted again, and they are the first region to do so. The production restriction period is the longest in Jiangsu. “It’s finally back to normal. The output has just come up, but production restrictions have begun again. The production plan has been disrupted again, and the orders just received will be postponed again.”
Everyone knows that in the period from now on to the end of the year, the market will gradually weaken, and the impact of production restrictions may not be as bad as in October. So big. So what will be the impact?
Recently, the temperature of cold-proof fabrics has increased again. After the demand increases, the supply of gray fabrics may increase again. There will be derailments. During the “Double Eleven” e-commerce festival, sales reached their peak. Many garments are pre-sold, that is, reproduced according to orders. If the downstream supply of gray fabrics is not timely, this order will be affected. Moreover, the printing and dyeing market in Shengze currently maintains a high operating rate of 85%, but is still in the queue for liquidation. If we encounter production restrictions again, you can imagine the level of congestion. Therefore, the bosses may be frantically urged to place orders next!
Not only that, the “Double Twelve” pre-sale plan may also be disrupted or even delayed. Especially this year’s Spring Festival is earlier than before, and there may be a holiday wave in mid-January. Every year before the Spring Festival holiday, the market will experience a rush of orders. Some are eager to ship goods, while others are preparing for the coming spring. When multiple orders are placed together, congestion is inevitable. If production is limited at this time, I am afraid that the delivery date will be extended again. Once delayed, the refund rate for online purchases will increase, and some clothing may be unsaleable.
After more than one month of production restriction in the early stage, the inventory of gray fabrics of most weaving manufacturers All are at a low level, and there are even many manufacturers with zero inventory. In fact, inventory is also a “double-edged sword”. If the inventory is high, the cloth boss will be worried; if there is no inventory, the cloth boss will be even more worried! Especially during the special period at the end of the year and the beginning of the year, production capacity will be affected due to the early return of workers and the delay in arriving at work. Therefore, according to common practice, manufacturers will produce a certain amount of gray fabrics in advance before the Spring Festival to cope with the wave of orders at the beginning of the year. But like Nantong, which directly limits production until the end of the year, it will be difficult to stock up. Therefore, it will also affect orders for next spring and summer.
But delve deeper into the current market, domestic demand is actually not strong, downstream price transmission is not smooth, and the raw material and weaving markets have always been in a “hot at the top and cool at the bottom” pattern. Recently, under the influence of falling temperatures in the market, cold-proof fabrics have become popular again. But other than that, the market is still going downhill. The “Silver Ten” peak season is over, and it is reasonable for orders to weaken. Every year in the off-season, some manufacturers will independently reduce production to control the inventory of gray fabrics. Restricting production during the off-season is actually tantamount to reducing production and may have little impact on enterprises.
To sum up, the impact of Nantong’s production restriction mainly depends on The two important issues are the order reception situation in the market outlook and whether the scope of production restrictions will be expanded.important factors.
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