While writing this article, the editor suddenly remembered Li Dan’s mantra: Be happy, the world is not worth it! But in fact, there is another sentence behind this, that is, the effort is worth it!
We are getting closer and closer to bidding farewell to 2019. Facing the weaving market where “sadness outweighs happiness”, the most common words I hear from textile bosses are: “Bake it up.” After a while, the Spring Festival is coming soon, and we’ll talk about next year’s affairs next year!” It seems relaxed, but in fact, it’s heavy inside. Textile bosses are also looking for ways to survive!
This is indeed the case in today’s weaving market. Entering mid-November, the overall market is still “busy”. A small number of textile bosses even said that orders have increased compared with September and October. Orders from the year before are basically guaranteed. However, they are shaking their heads when faced with the gray fabrics piled up in the factory. , the reason is simply that it is difficult to remove inventory! Instead of waiting for the sales to be realized at the end of the year, it is better to start withdrawing funds earlier, so various voices of selling goods began to appear in the circle of friends and textile groups:
300T pongee is urgently sold! Cool silk cotton T400 throw! King of Glory sale!
In the past, textile bosses would choose to sell goods on the street, but this year is actually quite unusual. Before the end of the year, some textile bosses are selling off this year’s best-selling product – King of Glory.
As far as Honor of Kings is concerned, it can be said to be the “hot product” in the market in August and September this year. This fabric is actually T400 pearl dot fabric, which is sold in ordinary T400 fabric merchants. Adding jacquard pearl dots makes it more personalized, and solves the problem of spandex breakage during use of traditional spandex elastic fabrics. It has better deformation memory function, so terminal purchases are more frequent, which once caused dye factories to burst out of stock and traders to rob the market. goods phenomenon.
It is understood that the current selling price of this King of Glory is 3.80 yuan/meter, and in early September, its average market price was 4.50 yuan/meter, and its price in the same period last year It can reach 5.50 yuan/meter.
In fact, for the market, selling goods is not a good phenomenon that is conducive to orderly competition in the market. Under normal circumstances, companies do nothing more than withdraw funds on the premise of losing profits. Why are fabrics sold at “cabbage prices”?
01 If you sell goods, you will lose money. If you don’t sell goods, you may lose even more!
In fact, deep down in the heart of every textile boss, he does not want to raise funds by “selling goods”. After all, the price will be “cut in half”. For example, the price of 300T pongee is 2.80 Yuan/meter, if the selling price is 1.80 yuan/meter, you may not even be able to recover the cost. This is not a happy thing, but in the face of the expenses required for raw materials, labor, water and electricity, etc., funds must be withdrawn. “If you want to take advantage of this market trend, it would be great if you can get away!” said Mr. Yang, the owner of Yibu in Wujiang area.
In addition to this point, many textile bosses believe that the current price of raw materials has been falling, which has also driven the price of gray fabrics to follow suit. The gray fabrics in the current inventory are all produced with high-priced raw materials. If the price of raw materials continues to fall, the inventory will depreciate, so it is better to sell the goods on hand first.
Take 75D chiffon as an example. The current market price is about 2.90 yuan/meter, and the price in October is 3.00 yuan/meter. Its main raw material is polyester filament FDY75D/ The price of 72F has dropped by 650 yuan/ton in the past month. This shows that the decline in gray fabrics is greater than the decline in raw materials to a certain extent.
“In fact, we don’t want raw materials to fall too sharply, because if the price of raw materials continues to fall, our inventory will also depreciate simultaneously, and profit margins may not necessarily improve because of the decline in raw materials,” another Mr. Chen, a manufacturer, said, “The quotations we give to customers are already very low, which is equivalent to giving them profits in advance, so the price of raw materials has fallen. For us, our profits have not improved significantly.”
02 The factory is busy delivering goods, but the inventory is difficult to reduce!
The “Double 11” e-commerce season has ended. The previous days of rushing to rush for goods can finally slow down. There are currently less than 2 months left before the Spring Festival. As usual, orders for rush delivery before the Spring Festival will be placed one after another in November, and the market has just entered a new order cycle.
“We have been very busy recently, and customer orders have been coming in one after another. Now the orders before the year are guaranteed,” said Mr. Shen, a business owner of home textile fabrics in Shengze area, “Although Orders are increasing, but inventory cannot be reduced, so for us, the pressure has not been reduced a lot. If the inventory is not cashed out, profits and funds cannot be guaranteed.”
The seemingly contradictory phenomena of increasing orders and difficulty in reducing inventories are “common problems” in the current weaving market. Entering mid-to-late October, whether it is cold-proof clothing fabrics on the market,Both market goods and orders for spring and summer fabrics are improving at the same time. Traders are doing well in accepting orders, and dyeing factories are also queuing up. There are various signs that the market is heating up, but the inventory performance is not obvious.
Sample data monitored by China Silk City Network shows that the current inventory of gray fabrics in Shengze area remains at about 37-38 days, which is only a decrease of about 1 day compared with last month. It can be seen that most manufacturers are deeply troubled by “high inventory”, and it is understandable that they hope to “realize inventory” as soon as possible!
“This year’s textile market is too difficult!” said a textile boss. Faced with the rapid rise in prices of various commodities, especially the price of “Second Senior Brother” has doubled, but the price of gray cloth has been difficult to rise, and even goods are sold at low prices.
In fact, everyone knows in their hearts that selling goods cannot solve the fundamental problem of oversupply this year. Downstream traders also dare not rush to stock up because of excessive inventory of finished products in the terminal clothing sector. Goods, the improvement of market trading atmosphere cannot be exchanged for the relief of inventory, and the road to destocking is still long! No wonder a boss joked to the editor, “It’s so difficult to eat pork!”
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