Just after the beginning of winter, the editor noticed that some people started setting up stalls in the market to buy down jackets and cotton-padded clothes!
The tight capital chain of textile and garment enterprises this year is a common feature
The editor is also very curious about this. Although there are discounted clothes for sale every year, this year they start earlier than in previous years, and the price is really very low. So the editor went up and asked the proprietress, and she said that some of the customers here came to pay off debts last year, and some came to pay off debts this year. “In the first half of this year, many orders were canceled at our last clothing factory. Their cotton clothes, The down jackets were all piled up in the warehouse. We went to ask them for the balance, but they said they couldn’t get the cash, so they took a batch of clothes to pay off the debt.”
This year It is common for textile and garment enterprises to have tight capital chains. During a visit to the market, 9 out of 10 bosses said that this year’s payments were too slow, and the account period for both domestic and foreign trade has been extended, taking at least 3 months.
According to a trader: “We still have 500,000 yuan floating outside. It was supposed to be settled at the end of last year, but it has not been paid off until this year. In the past two years, , I do feel more and more tired.” Coincidentally, the person in charge of a weaving company that produces imitation silk said: “Last year we all received goods in cash. At the beginning of this year, new customers must pay in full, and old customers must pay 30% first. Now as long as someone takes the goods, new customers pay 50%, old customers still pay 30%, and the bottom line is lowering step by step.”
Judging from the situation in previous years, the payment methods of foreign trade customers are generally better than domestic trade. However, due to the impact of the epidemic this year, many foreign trade companies said: This year’s impact of the epidemic The impact has been too great. Some customers have not placed an order with us since the beginning of the COVID-19 pandemic. Now that the epidemic abroad has not been fully controlled, there is a risk of order cancellation at any time. The Chinese New Year is coming in 2 or 3 months, and everyone is worried. At the end of the day, I don’t know whether I should accept this order or whether I should do it or not.
Therefore, during this period, textile workers are more worried about how to get the final payment early than taking orders. After all, the market this year is really bad. There are very few companies that make money online, unless they are making anti-epidemic supplies. The entire industry is at a loss, and it is definitely difficult to get the final payment.
The less valuable, some of our clothes are still in stock from last year. After being stored for a long time, some of the down has come out. We still attract customers through low prices, sell them as soon as possible, and get the funds back early.”
Affected by the epidemic this year, Companies from clothing to weaving are facing the dilemma of high inventory. As a cloth boss said: “Money is either in inventory or in repayments.” Although stimulated by the “Double Eleven” effect, many The company took the opportunity to sell a wave of inventory, but most of these orders were market goods. We all know that the characteristic of market goods is that they come and go quickly. As a “barometer” of the market situation, the dyeing factory’s warehouse purchases have declined. Through interviews with several cloth bosses, they all said that the placement of orders is now slowing down. Large-scale replenishment in the market has basically ended, and the subsequent order volume will not be as large as in October. Coupled with the second outbreak of the epidemic abroad and the lack of market confidence, it is difficult to have a situation as hot as October.
In addition, the market has improved during this period, and many looms in peripheral areas have been operating normally, which has also laid the groundwork for overcapacity in the future. “The prices of products in peripheral areas are generally 1-2 lower than local ones.” Wool, customers have been lowering prices with us. Although raw materials have increased a bit during this period, the increase in our fabrics still cannot keep up.” A manufacturer with more than 200 looms said that the current inventory of gray fabrics has been slowly rising. .
Just like the boss lady selling three pieces for a low price of 100 Just like selling down jackets, some weaving companies with high inventories have to reduce prices to attract customers to place orders, and even sell goods to raise funds. A person in charge of a weaving factory said: “Our product prices have generally dropped by 2-3 cents this year. But I still can’t sell it, and it’s hard to even sell goods these days.” When the market is bad, the boss also starts to give up the bottom line step by step, just to reduce inventory and collect some funds.
Postscript
It’s the end of the year, need There are many places to spend money. Textile factories need to stock up, and they also need to pay year-end bonuses to workers. However, this year, affected by the epidemic, Sino-US relations, etc., orders, prices, and profits have all fallen, and the market has “Under the situation of “more porridge and less”, all the bosses should try to make early plans in the next 2-3 months, try to get more inventory, and go to the home early to collect the balance payment. After all, it is too late. , you may only be able to get a batch of debt-repaying goods.
</p
