Recently, the editor was chatting with a friend, and he sighed: “Business is really bad this year, and I heard that the factory in our area will be demolished. If it is demolished, I will be unemployed. The civil service exam will be held soon. , I am now enrolled in a class, reading books and answering questions every day.”
We all know that the civil service examination is very difficult, and we have to pass it all the way. Only about a hundred came ashore in the end. Look at our textile industry. Isn’t this the same situation now? In the case of overcapacity and insufficient demand, if we want to get through smoothly, which textile person is not working hard with all his strength?
01
Overcapacity
Since this year, the problem of overcapacity in the textile industry has remained prominent. According to incomplete statistics, the production capacity of emerging water-jet looms transferred to northern Jiangsu, Anhui, Hubei, Henan and other places in the past two years has exceeded the 200,000-unit mark, far exceeding the water-jet looms eliminated by traditional textile clusters in the Yangtze River Delta region The quantity has also led to the situation that conventional gray fabric products will always be in a situation of oversupply in the next few years. This has also caused manufacturers that produce conventional gray fabrics to fall into price wars, further compressing profits.
Many cloth bosses said that business has been poor this year, and the frequency and volume of customer orders have decreased. Many market participants believe it is caused by overcapacity. Indeed, with the downstream unable to absorb the upstream production capacity, the situation in the textile market seems to be difficult to improve in the next few years. This is undoubtedly a big hurdle for cloth bosses.
02
China-U.S. Trade
For the textile industry, China and the United States The ups and downs of trade relations have always affected the textile market. After the interview, many textile bosses said they would not dare to take orders from the US market easily this year. Some bosses even said that when China’s trade war was intensifying in May and June this year, we directly stopped the U.S. business and switched to domestic trade. Boss Bu also said that orders were canceled from time to time due to tariff issues.
Many textile people said that this year’s downturn has a lot to do with the Sino-US trade war. After all, the United States has a certain influence on the world, but fortunately, Sino-US relations have greatly eased recently. There is a high probability that the foreign trade market will pick up next year, changing the decline in foreign trade this year.
03
The clothing industry is ushering in a “cold winter”
This year, the clothing industry is also ushering in a “cold winter” After the “cold winter”, La Chapelle, which was listed in 2017, suffered a huge loss of more than 800 million in the first three quarters of 2019. In less than two years, it has lost its glory. Metersbonwe also lost more than 200 million in the first three quarters of this year. Even The clothing sales of Internet celebrity brand Handu Yishe have also declined sharply. The Hangzhou Sijiqing Wholesale Market, which used to be in full swing, has now become deserted. You can imagine how miserable the industry is!
The end-use apparel demand market is so sluggish, it is understandable that the textile industry is also in a slump. A domestic trader in the Shengze area said that our order volume has dropped by 50% this year! Understand that it is normal for order volume to shrink by 30%-50% this year.
It can be seen that the end market demand is not smooth, which has led to the fabric market to be relatively tepid this year. “The peak season is slow and the off-season is very weak” is the feeling of most textile people this year. Even the hottest products, such as T400, T800, cool silk cotton, etc., the duration of the popularity is very short. It has to be said that the overall environment this year is not good, and the sluggish demand for terminal textiles and clothing is the crux.
Editor’s Note
The above difficulties are just the tip of the iceberg encountered by textile people. In recent years, the cost of raw materials and labor in my country’s textile market has increased. As prices continue to rise, weak downstream demand, overcapacity, disappearance of demographic dividend, and major relocation of the textile industry have become the new normal in the textile industry. The pressure on enterprises to survive continues to increase, and the transformation and upgrading of traditional textile enterprises is urgent. </p
