What we have heard most in this year’s textile market is how orders have dropped significantly and prices have plummeted. The profits of the textile industry have been hovering around 10%. After a year-long epidemic, many companies have begun to Falling out of the profit range, losses occur frequently.
AccordingtostatisticsfromtheNationalBureauofStatistics,thenumberoflossesincurredbytextilecompanieshasbeguntoincreasesignificantlysincethebeginningofthisyear,withtheyear-on-yeargrowthraterapidlyincreasingfromabout22%inpreviousyearsto50%.Theproportionofloss-makingtextileenterprisesintextileenterpriseshasalsoincreasedfromlessthan20%inpreviousyearstoabout30%.Evenaftermorethanhalfayearofrecovery,itisstillatahighlevelof25%.Inotherwords,oneofthefourtextilecompaniesisinastateofloss.
Thereasonsforlossesvarygreatly
Theproportionoftextilecompanieslosingmoneyissohigh,andtherearemoreorlesssuchloss-makingtextilecompaniesaroundus.However,thelossesofeachcompanyaredifferent,orthereasonsforthelossesaredifferent.
Mostofthemorecommonloss-makingcompaniesinthemarkethavebeenaffectedbytheoverallenvironment,resultinginasignificantreductioninordervolumeandthusenteringastateofloss.Accordingtothepersoninchargeofaconventionalfabricweavingcompany,theyhavemorethan200looms,mainlymakingpolyestertaffeta,pongee,satinandothercommonfabricsinthemarket.Thecurrentinventoryisashighas4.5millionmeters.Theordervolumehasbeenreducedbymorethanhalfcomparedwithpreviousyears,butotherexpensesandcostshavenotchangedmuch.Thelossesthroughouttheyeararecertain.
However,therearestillsometextilecompaniesinthemarketthatarenotlackinginorders,butarealsoforcedtomakelosses.Accordingtoatextileboss,hehasasmallprocessingfactory,whichmainlymakeshealdthreadingandreeding.Hesawthatthehometextilemarketwasgood,andtheirfactorymainlysold3.6-metermachines.Therewasnoshortageoforders,butrecentlyhesoldthemachinesandfled.Althoughtherewereorders,theunitpricewaslow,andworkers’wages,rent,andshippingcostswereveryhigh.Ifyouwerebusyeveryday,youcouldn’t make any money at all, so you had to leave at a loss on decoration, machinery, and rent.
The loss-making companies mentioned above are more or less victims of the textile market, and the losses of some companies are entirely due to their own mistakes or blind confidence.
The crazy meltblown fabric market in the first half of the year caused many textile people who followed the trend to suffer heavy losses. According to a textile boss, he followed the trend and bought a meltblown machine at the beginning of the year, with a deposit of 2 million for a price of 8 million. By the time he was queued up, the price of the machine had dropped to 5 million. He simply gave up the deposit. If he didn’t buy it, he would have nothing to lose. If you don’t work, you will lose a net loss of 2 million. In fact, he stopped the loss in time. If he really bought it, he would probably start losing money in real time. Not to mention whether it can produce qualified products, it is still unknown whether it can be sold even if it is qualified.
Copingwithlossesvaries
Lossescausedbythegeneralenvironmentareinevitable.Thekeyliesinhowtextilecompaniesrespondtolosses.Notextilepersonwouldwanthiscompanyorbusinesstoclosedownunlessabsolutelynecessary,butsometimesstoppingintimemaybethebestwaytodealwithlosses.
Atextilebosswhohasbeenengagedindigitalprintingformanyyearsclosedthecompanythisyear.Althoughhisfactoryisrentedfromhisfriend,andthereisonlyoneworkerbesideshim,theexpensescanbesaidtobeverylow,butinthefaceoftherealityofnoorders,nomatterhowlowthecostis,itisstillaburden.Evenifhestopshislossesandswitchestosomethingelse,itmustbetherightchoiceforhim,especiallyinthisyear’smarket,whichisveryunfriendlytodigitalprinting.
Notallcompanieswillgotothepointofclosingdown,andnotalltextilepeoplearewillingtohavetheircompaniesclosedown.”Struggle” is what almost all textile companies facing losses will do.
However, the ways of “struggle” are also different. Some companies pay close attention to the market and turn around and follow up once a hot-selling product leaves; some companies sell inventory at low prices to revitalize funds; some companies Workers’ wages are in arrears so that companies can maintain operations; some business leaders even sell properties to keep the company alive.
According to a person in charge of the company, their factory has 60 looms and 4 million meters of inventory. This amount is equivalent to more than half a year’s production. A large amount of money is tied up in inventory. The key is that the inventory cannot be sold. Even those who collect and process cloth must consider it. After all, their business is not much better. In the end, in order to keep the company running, he recently sold a house, but it is still unknown how long the house payment of more than one million yuan can support the company.
As the end of the year approaches, various financial pressures will come one after another, and textile companies that still fail to turn losses into profits may face greater difficulties.</p
