“We are going to take a vacation recently”, this has become a common thought among textile people recently.
But the reality is that companies that have always said they are preparing to take a holiday are still producing, and the trading boss who just promised his merchandisers to take a holiday suddenly received an order of tens of thousands of meters. There was no going back to the “days when the machine was turned on and everything was golden”, but the market has not yet reached a time of large-scale reshuffle. Textile bosses seem to have become accustomed to this kind of day and are operating more cautiously.
Holiday? No, wait! Construction starts in Jiangsu and Zhejiang remain above 60%!
“After the Dragon Boat Festival holiday, our start-up has been maintained at around 80%. We are not planning to reduce production significantly now. Depending on the situation at the end of the month, we may just go on holiday.” A family Mr. Wang, who specializes in imitation silk fabrics, said.
After experiencing the long Dragon Boat Festival holiday, the market operating rate of the weaving market has rebounded slightly. According to statistics, the operating rate in Jiangsu and Zhejiang regions dropped to less than 50% during the Dragon Boat Festival holiday.
In July, the weaving market load has entered a relatively stable space. The operating rate of water-jet looms in Shengze area has remained at 60-70%, the operating rate of warp knitting machines in Changshu area has been at 60-70%, and the operating rate of circular knitting machines in Xiaoshao has been at 40%. At about 70%, the warp knitting operation in Haining area started at 70-80%. Last week, the Jiapu area of Changxing was unable to drain water and caused backflow, and the reclaimed water reuse station was closed, which led to the large-scale suspension of water spraying, printing and dyeing in the area. Apart from this accident Factors, the overall market start-up in Jiangsu and Zhejiang remains above 60%.
According to interviews and surveys, most textile companies do not have strong intention to significantly reduce the start of operations recently, and textile bosses are waiting Take a unified vacation at the right time. “We have no orders recently, and now we have only production and inventory with the machines running. The pressure is increasing, but we dare not take a holiday early for fear that the workers will run away. Anyway, the hot weather is coming. When other manufacturers release their work, we will also Just let it go.” Mr. Chen, another pongee fabric manufacturer, also said.
Waiting for high temperatures and taking selective holidays have become the main operations of textile manufacturers in the near future. Many textile companies have set the end of July as the time point for holidays.
Can inventory be “liquidated” in the second half of the year?
In fact, off-season production inventory is the practice of textile bosses in July and August. These are based on the expectations for the “Golden Nine and Silver Ten” in the second half of the year. So in the first half of this year Will late orders return in the second half of the year? In other words, can these inventories that have been produced be “liquidated” smoothly in the fourth quarter?
According to a friend who told the editor, he recently visited China’s women’s clothing cluster market – Hangzhou Sijiqing Clothing Market.
He said that since the store opened in early March, spring clothes have hardly been sold. Many stores sell summer clothes directly, and then return some spring clothes to the factory and change them into autumn clothes, and some are backlogged in the store. In the store, although in previous years there was inventory in the store, this year there was more than usual.
In fact, this is not a characteristic of Sijiqing clothing stores. This year, most domestic and even many foreign stores will directly “put away” spring clothes and specialize in summer clothes in the first half of this year. Spring inventory is “flagged” in the fall, which also leads to a significant decrease in demand for autumn clothing.
Some clothing brands have begun to cancel autumn and winter clothing orders:
American sports giant Nike said it has canceled about 30% of its factory orders before the autumn and year-end shopping seasons;
American fashion luxury group Ralph Lauren said it has canceled about 30% of its factory orders. Two-thirds of autumn orders;
H&M said the company will sell some out-of-season spring inventory in the fall;
American casual denim clothing brand Levi Strauss & Co. (Levi’s) said it will put some unsold stock on the shelves in the fall basic clothing.
This wave of operations will undoubtedly lay a “thunder” for the sales of autumn and winter clothing fabrics in the second half of this year. Due to the cancellation of orders by retailers, the order volume of upstream raw materials has also dropped sharply, which has also caused the recent poor sales of autumn and winter clothing fabrics.
“After late June, we have not had many orders. Every time a customer places an order, we only have orders for about a thousand meters. Every day, production and sales have been uneven, and we have been running out of inventory. The current situation is that the inventory in the factory has been nearly 2 months.” said a textile boss who produces pongee.
Most textile bosses shook their heads as to whether they could monetize the inventory on hand. “It’s mainly due to the epidemic. The foreign epidemic is still fermenting now, and this has a continuing impact on our domestic orders.” A textile boss whose main customer is a Hong Kong trading company said, “Orders shrank by one-fifth in the first half of this year, and in the second half I think it’s still difficult to get better.”
Judging from the current inventory in the weaving market, in late June, the market’s accumulated inventory has accelerated, while terminal demand is still shrinking. Many foreign clothing and home textile brands are reducing stores, adjusting production plans, and becoming increasingly cautious about purchasing gray fabrics. Although the domestic trade market is recovering, the current domestic market is still unable to digest such a large amount of inventory, and companies can only use their own methods.��Maintain a normal capital chain.
Of course, for textile bosses, no matter how difficult it is, they still have to survive. Looking at the increasing number of cloth-selling copywriters in the circle of friends, the editor also feels that everyone is working hard to survive. To borrow the words of a textile boss: “If you survive this year, spring will bloom next year”!
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