Did you hear that?
1. The Wuhan market resumed trading in mid-April, and a niche fabric brought a wave of craze to the market.
2. A large water-jet factory in Jiaxing uses high-end looms imported from Japan worth more than RMB 300,000 from Tsudakoma to weave “bad cloth” such as polyester taffeta and pongee!
This was abnormal in the past, but now it has become the norm.
The “devil market” of niche products
The Wuhan market is famous as a “devil’s market”. The so-called devil’s market means that the market comes and goes quickly. It has been more than a month since the Wuhan market opened. I thought the market would collapse. After all, it had been stagnant for so long and it would take time to buffer. However, a new niche fabric called two-color twill four-way elastic has brought a new trend to the market. It’s quite a wave of craze.
A textile boss in the Shengze area said: “Several major factories in Shengze are making this fabric, and hundreds of machines are running at the same time. The volume can be said to be very large. .” However, this wave of craze only lasted about ten days. Just imagine that it took at least a week from ordering to shipping. This kind of enthusiasm disappeared in an instant and the time was very short. The same niche product (take the previously hot-selling Diamond Huayao as an example) can last for nearly a month in the Jiangsu and Zhejiang markets, while niche products are only short-lived in the Wuhan market.
Niche products are not as popular as regular products. Basically, the popularity of all niche products will not be particularly long-lasting. , such as the previously popular Wal satin, imitation German velvet, etc., have a limited survival cycle in the market. Generally, niche products are popular in a certain period of time, and after this period of time they will “cool”.
Niche products are difficult to drive sustainable development of the market. A temporary craze cannot have much impact on the market. The development of the textile market still depends on conventional products. It is understood that the current sales volume of conventional products is still relatively optimistic. Although the sales of pongee and polyester taffeta are not as popular as before, they are still outstanding compared to other products.
If a machine loses 100 yuan/day, it will still suffer losses!
“If the high-end machines imported from Japan are used to make relatively low-end gray fabrics, each machine will lose about 100 yuan a day.” A textile person revealed to the editor.
The market is now slightly better than before, but there are still many companies that have no orders. In order to prevent factories from shutting down, they are still weaving inventory. Under such circumstances, Some factories have begun to use high-end machines to weave low-end fabrics, and use some machines that are usually used to produce relatively high-end gray fabrics such as nylon and nylon four-way stretch to produce polyester taffeta and pongee at a cost of only 0.3~1 Yuan/meter of low-end gray cloth. The depreciation cost of the machine is tens of yuan, plus various labor and other expenses, a machine will lose about 100 yuan every day.
Why do textile people do such helpless things?
In the final analysis, it is still due to inventory. According to data monitoring from China Silk City Network, as of May 28, the company’s gray fabric inventory was around 41-42 days, although there is a gap compared with the previous period. It has dropped significantly, but is still at a high level compared with 2019, when the market was also not ideal.
“Compared with weaving some higher-end gray fabrics for inventory, it is better to weave some lower-end conventional varieties. After all, conventional varieties can be used in various aspects, but some high-end gray fabrics have great limitations in their use. Weaving low-end varieties such as pongee and polyester taffeta can be sold in stock at any time.” A textile worker the boss said.
The concerns of this textile boss are believed to be those of most textile bosses. Indeed, in the absence of orders We don’t want the factory to stop production. The cost of weaving some low-end gray fabrics is definitely much less than that of high-end gray fabrics. The cost price of some higher-end gray fabrics is usually more than 1 yuan/meter, plus various processing fees. Wait, that’s a lot of money. In addition, old varieties such as polyester taffeta and pongee have been around for more than ten years, but there is still demand every year. Unlike some niche high-end varieties, they are updated very quickly.
Then let me ask you about the same weaving stock. Would you rather weave low-end, more conventional gray fabrics, or high-end, more niche gray fabrics?
Overall, the current market has progressed a lot compared to before. A trader and editor said: In May Orders have begun to increase, which is very good compared to the whiteboard in April. If we can receive a big order next, this year will not be particularly bad. </p
