Today, the number of confirmed cases of pneumonia overseas has exceeded one million, and there are currently no signs of an inflection point in several countries with large numbers of infections: the United States, Italy, Spain, Germany, France, etc. However, these countries are also important export destinations for fabrics and clothing in my country. The epidemic situation in these areas has not improved, which directly indicates that the textile market will be difficult to improve in the short term.
March is over, but the order cancellation crisis that has lasted for more than half a month is far from over, and is even getting worse. And with the development to this day, it is no longer simply the loss of orders, but all kinds of textile factories are facing the problem of “no work to do” and “where to go”.
The operating rate is 50% to 30%, and the decrease in orders has further worsened
Foreign trade orders have dropped “cliff-like”, Dyeing factories are the first to bear the brunt, especially in the past half month, the status of dyeing factories has vividly reflected the changes in various orders.
According to the person in charge of a dyeing factory, their factory’s order volume dropped significantly in mid-March. The production status once changed from crowded and queuing to waiting for work to be done. The operating rate quickly dropped from full capacity to 50%. I thought this was a “bad market” that had been rare in many years. Unexpectedly, less than half a month later, the order volume deteriorated again. Currently, the factory’s machinery and equipment are only operating at one-third of normal capacity, and there are more than 500 workers. The factory can only ensure that half of the workers have work, and the other half can only take turns. Even so, it is difficult for the factory to guarantee how long this state of still having orders will last. The entire factory’s goal this year is to “survive.”
Not long ago, some dyeing factories had to rush to ship foreign trade orders, and there was a phenomenon of pressing cards and queuing up to add money that went against the market conditions. But now the orders from dyeing factories seem to have been cleared overnight. All dyeing factories have reported that there are no orders. The factories are either reducing production and taking turns to take vacations, or they have stopped production directly.
Is it possible that under the pneumonia epidemic, the textile market is all in mourning without any bright spots? Of course not!
For some niche products, orders have risen against the trend
Textile fabrics are used in clothing and home textiles in the market. It is relatively common, and some fabrics are used in gift box packaging, toys and other products, but they are often easily ignored because they use not much material. However, this global pneumonia epidemic has impacted the textile market, and this niche fabric market has been least affected.
Because clothing is highly seasonal, it is difficult to sell once it misses the fashion trend. Therefore, it is reasonable for both demand and supply to shrink in the face of the epidemic. However, products such as gift box packaging and toys are not very time-sensitive. As long as they are produced, they can be sold for several years without any problem. Therefore, there has not been a significant reduction in orders in this area on the market, and some traders are even taking advantage of the current low price of raw materials and fast production speed to stock up.
A fabric trader said that they are making a cosmetic packaging box lining, and orders are received every year, but the period after the beginning of this year is especially heavy. Tens of thousands of pieces are ordered every week, nearly a month. More than 210,000 pieces were ordered on Monday, requiring nearly 50,000 meters of fabric. Although the market is full of order cancellations, this customer’s order does not show signs of off-season at all. And because the type, size, and color of packaging fabrics cannot be easily adjusted, and the current gray fabric prices and dyeing fees are relatively easy to negotiate, it happens to be a rare stocking season. The trader also prepared about 10,000 meters of finished fabrics. .
Not only are they very busy with orders, but the factory that helps them do lining and trimming is also very busy. Under normal circumstances, this trimming factory gets off work at 5 o’clock every day, but recently it has to work overtime until 9 or 10 o’clock in the evening to meet the needs of customers for shipment. Although their factory also processes various types of fabrics, these fabrics are rarely used in clothing. They are basically various packaging cloths, toy fabrics, etc.
Fabrics are just accessories, the main demand of the product is stable
These marginal fabrics that are usually ignored by us have clothing Fabrics, home textile fabrics, etc. do not have advantages. First of all, these fabrics are often just accessories, or not the focus, and are not the selling point of the final product. Therefore, end customers often do not focus on fabrics and do not pay too much attention to the quality and quality of fabrics.
Take cosmetic packaging as an example. These customers value cosmetics and do not care at all about the quality of the packaging lining. And because the use of cosmetics is continuous, customers will always use a certain type of product if it is suitable for use, thus ensuring that this type of order has a certain continuity. The same is true for wine box packaging cloth. Continuous orders, no time limit, and no excessive concern about quality are the characteristics of this type of product, which also ensures that this type of product remains popular in the current market conditions.
If end customers ignore fabric quality, they will not cause too many product after-sales disputes.�The demand for products continues, which also stabilizes the placement of fabric orders.
Although the profit of fabrics for this type of products cannot be compared with that of clothing fabrics, traders with orders from these relatively niche customers are relatively likely to be profitable during this textile off-season. Be more relaxed. After all, many peers have no orders at all, but their orders are still coming in continuously. At the same time, it also reminds us textile people that we also need to pay attention to orders for marginal products, which may be able to help you tide over the difficulties in a certain period of time. </p
