“There is now an order of 5 million meters placed by a well-known clothing company in the market. No manufacturer has dared to accept it. This order is mainly for 400T pongee. …” said a textile boss in Shengze area.
400T pongee has been very popular in the market recently. Some textile bosses have even said that the popularity of this fabric will last until at least October. But in the off-season when orders are gradually decreasing, why is it that no one in the market dares to take a large order of 5 million meters placed by a clothing company?
Enterprise requirements are high, and textile bosses are afraid of losses
It is understood that the company is a well-known down jacket manufacturer in China, and 400T pongee also happens to be a fabric for autumn and winter down jackets. Because of this, such companies will have very high requirements for fabrics.
This fabric is mainly made of water-jet weaving It is produced by machine. Some old machines will have obvious stop stalls when they stop, or due to raw material problems, the yarn is too thin and causes breakage. However, these problems are difficult to avoid during production. Only by using new machines In order to reduce defects as much as possible. The clothing company requires the weaving manufacturers to have as few defects as possible on the gray fabrics. According to the current hardware conditions of the weaving manufacturers, many weaving manufacturers are unwilling to accept such orders and it is difficult to meet their requirements. However, the price offered by the clothing company is very attractive. people.
The market price profit is 50 yuan/unit, and the order price profit is more than 100 yuan/unit!
400T pongee has been on sale since early June, and the price has also increased from the original 3.7 yuan/meter including tax to the current 4 yuan/meter due to the increase in raw materials. Rice includes tax.
“Usually, according to the market price, the daily profit of a loom for this piece of fabric can be more than 50 yuan. Although the well-known clothing company has very high requirements, The price given is also very attractive, the order price is 4.3-4.5 yuan/meter, so a loom can make a profit of more than 100 yuan a day.” said the above-mentioned textile boss.
Although 400T pongee is selling hot, but every day The profit of only 50 yuan for the loom is really not much. It is difficult for the price to rise when waiting in line for goods in the early stage. The market has been in an embarrassing situation where the price of raw materials has increased but the price of gray fabric has been difficult to rise. This has also led to many textile bosses although they have orders but very little profit.
The temptation to make profits twice as high as the market price is indeed tempting, but even if a large clothing company like this offers a good price, the textile boss has nothing but requirements. If it is too high, there will still be other concerns.
Large enterprises operate on an assembly line, and later payment collection is still a problem!
For a large clothing company like this, later payment will become a more difficult problem. Generally speaking, an order of 5 million meters like this will have a dedicated The salesperson communicates with the textile boss, and when the debt is settled in the later stage, the salesperson has to go through layers of reporting, approval, and waiting… before the money can reach the pocket of the textile boss.
A large order of several million meters like this , it will definitely not be paid in full for one-time delivery. Basically, you need to pay a deposit in advance, and then talk about the final payment after delivery.
A simple calculation of the time, it will take at least two months for an order of several million meters to be delivered. Assume that there are problems in the middle, such as customers being dissatisfied with the quality, etc. , the delivery time will continue to extend, conservatively delivery will take more than two and a half months, based on July now, by the time of delivery, it will be the end of September. Weaving companies will start asking for accounts in October, and corporate salesmen will go through layers of Approval, according to the company’s assembly line operation, will take at least one to two months to approve the payment. Near the end of the year, the company has heavy affairs, and it is difficult to ensure that the payment is approved in time. The textile boss may not receive the accounts receivable until next year. , in the current market situation, timely withdrawal of funds can reduce the burden on enterprises.
So generally textile bosses prefer to cooperate with some small companies that can directly contact the boss. Such large companies still offer very attractive prices in a timely manner, but There are still many concerns when it comes to taking orders.
The current market is still in the off-season. Some textile bosses said that orders have begun to decrease significantly recently, and many hot-selling varieties are not as good as before, but this is normal. , time will fly by very quickly. Judging from the current situation, I believe there will be a wave of good market conditions in August and September.
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