“Two large orders from Europe and the United States have been cancelled” “An order of 4,500 tons of knitted fabrics has been cancelled” “An order of more than 9 million meters from a dyeing factory has been cancelled”… “Order cancelled” has been It has become a keyword in the current textile market, especially as various foreign trade orders are either being canceled or on the way to be cancelled.
Although the domestic COVID-19 epidemic has been basically brought under control, the situation overseas is obviously out of control. City closures, road blockages, travel bans, etc. that they originally dismissed in Europe and the United States have also been quietly picked up and gradually implemented. Business offices are stagnant and logistics are hindered in these regions.
Inconvenient office logistics, unclear fashion trends, and lack of confidence in future clothing sales are happening in our important source of textile foreign trade orders. The entire spring and summer foreign trade orders will be affected by this, with a large number of reductions and cancellations. It is not difficult to understand.
With the future of the foreign trade market so uncertain, can we return to our familiar domestic trade market?
Thedomestictrademarketwasonceabandonedbysometextilepeople
Domestictrade,asanimportantpartofthetextilemarket,hasalwaysbeenthestartingpointformosttextilepeopletostartandgrow.However,noteverytextilepersonwillsticktothismarket.Oncethetimecomes,switchingtotheforeigntrademarketseemstobetheonlywayformanytextilepeople.
01
Decreasingorders:
Thethresholdfortextiletradeisnothigh,especiallyinthedomestictrademarket.Intheinitialstage,oneortwopeoplecantakeordersforproduction.Preciselybecausethethresholdislow,thenumberofpeopleenteringtheindustryisincreasingyearbyyear,butthenumberofordersislimited.Manynewandoldcompaniesareseizingafixedmarket.Afterall,thenumberofordersthatcanbeplacedwithasinglecompanyislimited,anditisdifficulttoavoidthetrapof”low-pricecompetition.”
02
It is difficult to ask for payment:
When doing business, you cannot avoid asking for payment, especially in the domestic textile trade market. “Sales on credit” are prevalent, and there is no contract to determine the time for payment. Even if there is one, it is difficult to implement it. Most of the agreements are based on oral communication. It is common for orders to be settled monthly, three months, half a year, or even annually. Of course, it doesn’t matter if it just takes longer to get the money back. In fact, there are often many “lazy” companies in the market. Defaulting on payment and refusing to pay seems to be their way of doing business.
In order to avoid low-price competition after orders are reduced, as well as payment issues, many textile workers have the idea of shifting to foreign trade when conditions are ripe. After all, the overseas textile market is broader and there will be strict payment requirements. contractual constraints. However, the current overseas market is on the verge of stagnation due to the epidemic. At this time, does the domestic trade market have the ability to absorb textile production capacity?
The current domestic trade market orders are not optimistic
Although our domestic pneumonia has been basically under control, the impact of the epidemic will not end immediately. Our spring and summer clothing sales market has been deeply affected, and the upstream fabric end is also difficult to escape.
“We are still making samples and have not received a decent order yet…”, “At this time in previous years, we shipped at least three or four trucks to the garment factory. So far this year, we have only shipped “Sent a carload of fabric”, “More than one million meters of nylon spinning orders have been reduced by customers to only tens of thousands of meters left”… Several traders who only deal with the domestic trade market have encountered the same situation. , orders have dropped significantly compared to previous years.
Not only these traders who make “orders” of fabrics feel that orders are shrinking, but customers who specialize in “market goods” fabric orders in some large domestic spot markets also lack confidence in the market. It is difficult to prepare as many types and large quantities as in previous years. The entire domestic trade market is already in a state of abnormal shortage of orders for “market goods”.
Today’s domestic textile trade market does not have many advantages over the foreign trade market. The situation of reduced orders and meager profits still exists, and the trend is even getting worse. Because some traders are already planning to switch from the foreign trade market to domestic trade, which will intensify competition in this market. A buyer’s market in which “supply seriously exceeds demand” is about to take shape. All textile companies may face a situation where they are “not full” of orders, and are faced with various price cuts and difficulty in getting payment. </p
