Recently, the global epidemic has once again entered a state of outbreak. Starting in December, a more transmissible variant of the new coronavirus was discovered in the United Kingdom. Subsequently, Europe and the United States The epidemic is out of control. Not only is the number of new confirmed cases rising every day, but the number of daily deaths is also reaching new highs. At the same time, there are also signs of a rebound in the epidemic in some cities in my country. These all indicate that the epidemic is difficult to truly control in the short term, and cold weather is very conducive to the spread of the virus.
Although many regions around the world have begun to put vaccines into use, due to vaccine production capacity constraints, the spread of the epidemic cannot be completely reversed in the short term. Experts expect that the turning point will be reached in June and July 2021, and that the epidemic will be controlled by the end of the year. So for our textile people who rely heavily on foreign trade exports, what changes will happen in the textile market in the future?
The winter epidemic breaks out, winter clothing orders decrease
It is everyone’s consensus that the epidemic is more likely to get out of control and spread in the cold winter. The winter of 2020/2021 is the time when the global epidemic outbreak is the most intense. After a year of epidemic prevention work, all countries have gained enough experience to know that the most important thing to do now is to close the city and reduce the flow of people.
But winter is the time for many important holidays, and it is also an important time for people to shop and spend. Especially for clothing sales companies, sales in winter account for a larger proportion of the whole year. At this time, closing the city and reducing travel will inevitably seriously affect the sales of the winter clothing market.
In fact, the serious epidemic situation in winter has already changed the situation. Textile orders had an impact. According to an employee of a foreign textile company, they mainly purchase fabrics domestically, then export them to their own factories in India to produce clothing, and then export them to Europe and the United States. They have had a lot of orders recently, but they are basically spring and summer clothing orders. In the past, many winter clothing orders have been basically cancelled, mainly because of the severe epidemic in winter, people’s demand for travel has weakened, and their desire to consume clothing is not strong.
The key is that this winter epidemic prevention idea is likely to continue until the beginning of 2022. After all, even if the world is vaccinated, we still need to prevent the resurgence of the epidemic, especially if the virus is active winter. Therefore, in the winter of 2021-2022, all parts of the world will inevitably be on high alert, and it will become the norm to discourage the movement of people and gatherings.
Although the sales of winter clothing fabrics have improved recently due to the continuous cooling in winter in China, it is still a drop in the bucket compared with the reduced order volume of foreign trade. Compared with the decrease in demand for winter fabric orders, the performance of spring and summer orders is relatively stable. However, a large number of textile companies have gathered in the spring and summer fabric market, which will inevitably intensify competition.
Spring and summer orders increase, price competition intensifies
Spring and summer clothing in the textile market a year ago Fabrics have always been the protagonist, and the situation is similar this year, although the overall order volume is not as good as in previous years.
According to the person in charge of a dyeing factory, their daily volume of gray fabrics has been around 500,000 meters recently. The volume in previous years was at least 1.5 times more than now . However, the number of orders for imitation silk fabrics has increased significantly recently. Such orders were very scarce throughout 2020, and finally improved at the end of the year.
In order to obtain orders, the entire market quotation is as low as possible. Therefore, these spring and summer orders are almost insulated from high profits, but after receiving the orders, everyone is thinking about how to reduce the cost of these orders and increase profits.
According to a trader, they have recently made orders for more than 60,000 meters of chiffon. This year, the price given by customers is very low, and they are also trying to find ways cut costs. Gray cloth is already cheap enough. Any cheaper will affect the quality of the cloth, so we can only find ways to deal with dyeing costs. Their batch of fabrics are all made of white. The dyeing price given by the nearby dyeing factory is about 1.7 yuan/meter. In order to keep the price low, he can only go to other places to do it. The price given by the dyeing factory outside is around 1.7 yuan/meter. 0.98 yuan/meter, the difference between the two is more than 0.7 yuan/meter. This difference is basically the source of all his profits.
The current dyeing factory market is also due to the The gap in dyeing fees has begun to diverge. The queues in general dyeing factories can already indicate that the market is improving. However, some dyeing factories with low dyeing fees have begun to refuse orders to enter the warehouse because they cannot guarantee that they can be completed before the year. Some dyeing factories are already planning to suspend production and take holidays in the next few days.
Before the epidemic is completely over, there will still be a lot of uncertainty in the textile market.Market confidence is also difficult to restore. Especially in winter, the global epidemic continues to rebound, which has a huge impact on the entire winter clothing sales. The remaining spring and summer markets can only be filled with various low-price competitions for orders. After receiving the order, I thought about how to save costs and expand profits.
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