Since the resumption of work in March, both domestic and foreign trade have experienced a sharp decline due to the epidemic. Market orders are limited, and fabric suppliers everywhere are eyeing this increasingly smaller piece of cake.
“Although the market has gone downhill this year, we are actively exploring the domestic trade market, and the shrinkage of orders is not obvious.” Mr. Wang, a trader from Jiangsu, said, “But recently I have been very Anxiety is not the anxiety of not having an order, but the anxiety of being pushed for orders by customers!”
Anxiety over ordering and delivery, I have never had the anxiety of ordering. !
For the textile market in 2020, especially in August, which is the traditional textile off-season, why does this phenomenon occur in the market?
Mr. Wang told the editor about a recent experience:
There is an order for a 75D double-layer four-sided bullet. The customer placed an order of 4,000 meters, and called at night to add another 3,000 meters. On the second day, the third day… and one week after another, orders of 70,000 meters were added, but the delivery time was very urgent. On the one hand, he needs to mobilize the gray fabric factory to help arrange production capacity to produce gray fabric. On the other hand, he needs to contact the dyeing factory to help “give the green light” to shorten the printing and dyeing delivery time. There must be no error in any link in the middle, otherwise he will face losses.
For Mr. Wang, this experience has been happening in the past two months. In August, as autumn and winter clothing fabrics were sampled and orders began to increase, orders from downstream customers also arrived. This wave of market conditions in the off-season has boosted the confidence of many textile people. Although conventional chemical fiber fabrics are generally easy to switch to gray fabrics due to abundant market production capacity, for some order products, the market still needs to arrange machine production, which involves delivery time.
“During this period, we have been frequently urged by customers to deliver the orders placed by Sofa. There is a lot of work in the factory, and the delivery time is about half a month.” A printing and dyeing salesperson Said, “The order volume entering the warehouse is not large now. 20,000 meters is considered a big order, but customers are pressing for it, and we are also under great pressure.”
Compared with previous years, changes in ordering patterns this year have resulted in an increase in the “short, flat and fast” pattern of market orders, exacerbating some of the The delivery time of the ordered products is tight.
“The market order model has changed a lot this year. In the past, a hot item could last for at least 1-2 months in the market, but this year the duration of each hot item has changed. Not long, from the previous four-sided elastic satin to diamond Huayao, the market has not been long! In previous years, clothing brands would hold purchasing meetings in advance to give suppliers time for research and development, production, and delivery, but now they are purchasing small orders and testing. Single mode.” Another trader, Mr. Shen, said.
In fact, the concepts of fast fashion, fast reaction, and reprinting are not new terms. They have been popular among some domestic and foreign brand clothing companies as early as a few years ago. It is said that Uniqlo’s repurchase orders account for 60%-70%, and ZARA’s new model launch cycle is more than ten days. This also tests the delivery speed of clothing fabric suppliers.
In addition to brand clothing manufacturers changing their procurement models due to the development of the times, their own large inventories and rising market risks have also led to more cautious procurement of fabrics this year. There are more and more orders for “batch and multi-batch”.
The payment cycle is doubled compared with previous years!
For traders, being reminded of orders is already the “sweetest burden”. For many weaving factory owners, this year’s trading bosses It’s really much better. Without the two big mountains of workers and inventory, trading bosses only need to overcome the difficulty of collecting payments this year, and their lives are going well.
“My customers are mainly trading companies in Shanghai. Their order volume this year is still guaranteed, but the payment cycle is very slow because his customers are from the European and American markets. One by one, the payment to us is slow, and it usually takes 6 months to get the money back.” said Mr. Wu, a trader.
Another Mr. Wang, who specializes in autumn and winter clothing fabrics, said: “Currently, customers’ payment returns are still relatively slow. In the past, the payment cycle for orders usually took three months, but now it takes about half a year. However, this year itself is not easy for everyone. , so in order to maintain the relationship with old customers, we have also acquiesced to this rule.”
Different from the fixed payment model in the foreign trade market, the payment cycle in the domestic trade market is more variable. Therefore, under the influence of the epidemic, the payment collection cycle of traders this year has doubled compared with previous years. “Last year, the market was not as good as the year before, and the customer payment cycle has slowed down. Some monthly orders require at least 3 months to pay back, and this year it will be longer.”
For 2020, In the textile market, many traders have repeatedly extended the payment cycle for existing old customers. Now the general payment cycle in the domestic trade market is 3-6 months, and some even have not settled the balance of last year.
It can be seen that in the environment of overcapacity and shrinking demand, traders are…�Expanding sales channels or retaining original customers can only expand the proportion of credit sales, thereby increasing its own receivables.
Traders are in the middle of the textile industry, and traveling lightly has become their best “weapon”. Entering September, the traditional off-season will gradually leave, and sales of autumn and winter clothing fabrics will continue to expand. Although this year’s market is still relatively magical and unpredictable, judging from the current market, terminal demand is still gradually recovering. As long as the products are suitable for Road, the life of the trader boss will not be difficult!
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