We all know that this year is the off-season that the textile industry has not seen in many years. All production links and various fabric products have experienced declining sales and shrinking profits. But among all the fabrics, the one that is in the deepest trouble and has the most confused future may be the very common conventional fabrics on the market. Although the market is not good, there are still many hot-selling products in the past six months, but these products have nothing to do with conventional fabrics. Even if they can get along with each other, they will end up in a situation that is even worse!
With more than 100 days of inventory, the profit is almost zero
The worst situation of conventional fabrics is the most obvious The performance is that the inventory in the warehouse is growing like a wild horse. According to a polyester taffeta and pongee manufacturer, there are only 200 machines in their factory, but their inventory in the warehouse now exceeds 4 million meters, which is basically equivalent to their 100-day output. This is because they suspended production several times for holidays in July and August, which slowed down growth, otherwise the inventory would be larger.
In April and May, their inventory was only about 2 million meters, which almost doubled in just a few months. It can be seen that in the past few months, orders have basically not improved, and production and sales have always been unbalanced. Of course, it is not just production and sales that are out of balance, but also profits that have fallen into decline.
According to the person in charge of another polyester taffeta manufacturer, their orders have dropped by about 70% so far, and they will definitely lose money throughout the year. A large amount of raw material stocking before the year was met with a sharp drop in raw materials after the year. This alone caused them heavy losses. Moreover, the price of raw materials continues to fall, and their gray fabrics can only depreciate accordingly. The key is that no one wants them no matter how cheap they are. The profit per meter of cloth is only a few cents, and most of them are sold at a loss.
It’s okay to lose money, but it’s still hard to get payment. In order to be able to accept orders, it is normal for the market to allow arrears, but risks also coexist. Some new customers may use quality issues to find reasons to withhold payment. For this reason, many gray fabric manufacturers have raised the threshold for cooperation with new customers, and some companies even only cooperate with old customers under the current market conditions. Although the payment speed of old customers is also slow, they generally do not withhold payment for no reason.
Weavers can more or less see the sad situation of conventional fabrics, but even so, there are still many companies in the market trying to enter the conventional fabric weaving industry.
Conventional fabrics such as “siege”, some people want to enter and others come up with it
“You will not drown if you fall into the water, but you will drown if you stay in the water.” Everyone knows this truth, and conventional fabric manufacturers who are in deep trouble also understand it. Does this mean that these manufacturers need to actively transform and change their products to find a way out?
“I would rather change industries than make changes in fabrics” may be the most common attitude among these conventional fabric manufacturers. According to the person in charge of a simulated silk weaving factory, they had the idea to update equipment and change the production products a year ago, but they stopped it after the new machines were installed after the year. In the current market situation, making changes means a large amount of initial investment and the need to re-develop relevant customers. These costs and risks are currently unbearable for them, and it is more stable to make old products.
But he has not been idle. He has been investigating the logistics and fitness equipment industries. These industries have performed very well this year, and he has the idea of changing to this field. Having been making conventional fabrics for many years, they may have seen through the prospects of this type of fabrics. Some textile people who were originally unwilling to make some changes have become more determined with the help of this year’s epidemic.
It is the idea of many textile people not to develop in conventional fabrics, or even find ways to escape. But there are still some companies trying to enter the conventional fabric production industry.
According to a textile worker, the company where he works is a raw material factory, which mainly produces coarse raw materials used in Oxford cloth. However, due to the bad market conditions this year, their inventory of raw materials is very serious, and now the factory’s senior management has the idea of starting their own weaving business to consume their own raw materials. Therefore, I have been doing market research recently, and it seems that it is a high probability event that the company will switch from raw material production to fabric weaving in the future.
All textile people have heard and witnessed the plight of conventional fabrics. It can be said that various inventory backlogs and shrinking profits have Already at the peak of history. However, there are few practices in the market to adjust production strategies and change production varieties. Most textile people are unwilling to make breakthroughs in conventional fabrics. However, the dilemma of conventional fabrics has not stopped some outsiders from yearning for it. There are many ideas on the market to enter the conventional fabric weaving industry, and some companies have even begun to implement it.
On the one hand, existing conventional fabric manufacturers are “resting on their laurels” and concentrating on producing inventories. On the other hand, some emerging production capacities are about to explode in the conventional fabric market. The challenge of conventional fabrics has just begun. The next inventory and profits will refresh the existing knowledge of textile people over and over again. </p
