Recently, the price of pork has been rising, reaching 35 yuan/jin, which is double the price in the first half of the year! The editor can no longer afford fresh meat mooncakes this Mid-Autumn Festival! In the textile market, there are also a group of people who can’t afford fresh meat mooncakes just like the editor. Since the beginning of this year, the textile market has been in a bad environment. Most companies can only make small profits, and some even suffer losses.
According to the sample companies of China Silk Capital Network, the gross profit of a pongee spinning machine is 20-30 yuan a day, a year-on-year decrease of 60%; the gross profit of a polyester taffeta machine is 10-20 yuan a day, A year-on-year decrease of 80%. It can be seen from the above data that the profits of weaving manufacturers have dropped a lot year-on-year. Where did the missing profits go?
<img data-preview-src=""data-preview-group="1"src="http://pic.168tex.com/Upload/News/image/2019/09/16/Sincethebeginningofthisyear,ordersintheentiretextilemarkethavebeenlowerthanexpected,especiallywiththeoff-seasonarrivingearlyandtheinventoriesofweavingmanufacturerssoaring.Themarketcompetitionthisyearhasbeenfierce,supplyexceedsdemand,andmarkettransactionvolumehasbeenstagnant.Takepongeeasanexample.Currently,theinventoryofpongeeonthemarketisaboutoneandahalftotwomonths,andmanufacturershavedifficultywithcapitalturnover.EvenT400grayfabric,whichiscurrentlyverypopular,cannotescapethefateofbeingsoldatreducedprices.ThebossofaweavingfactoryspecializingintheproductionofT400grayfabricssaid:”Itisgoodifthegrayfabricscanbesoldwithoutlosingmoney.’HonorofKings’hasdroppedby1yuan/metercomparedwithlastyear.Butnowtherearesomanypeoplesellinggoodsinthemarket.OncethereisWhenmajormanufacturerssellT400,ourpriceshavetodropaccordingly,letaloneprofit.”
The sales price is generally 0.1-0.2 yuan/meter lower than the market price, or even There are even lower ones, so low that you doubt your life. In order to reduce inventory and withdraw funds, some manufacturers do not hesitate to sacrifice profits and lose money, causing market price chaos. Today’s market competition is very fierce. Conventional products can only compete on price, so all profits are used to compete on price.
Settlement of gray fabric receivables at a 10% discount | There are many arrears, and each payment is more than the payment Due to the poor supply of goods in the market, weaving manufacturers have excessive inventory pressure and have to choose low prices Sell goods to withdraw funds. Taking pongee as an example again, the average market price of 240T pongee is 2.38 yuan/meter, down 15% year-on-year. The fall in prices will inevitably lead to a shrinking of its profit margins.
A company mainly engaged in pongee fabrics The owner of the weaving factory complained to the editor: “There is really no profit this year. Last year, the gross profit of a machine was 80 yuan a day, and now it is only 50 yuan. The debt is too serious, at least two months, or even half a year. The final payment is Sometimes they would give me a 10% discount on the receivables, and they would find faults in all kinds of ways. I had to pay for goods worth several million and deduct hundreds of thousands. How could I still make money?”
Looking back on the past two years, how much money was owed? The problem has been alleviated and improved under the hot market, and most of the goods are delivered with money. This year, as the market continues to be weak, the problem of arrears has become a headache for cloth bosses. It has become a dream to bring money to pick up the goods. A good customer is a good customer who owes one month, and two months is the norm. However, half a year and a year are not uncommon.
Investment of 60 million and gross profit of 5 million | High cost, each item is higher than others Workers’ wages and rent are also major costs one. Nowadays, workers’ wages are getting higher year by year, and holiday benefits are becoming more and more complete. During the off-season in July, many manufacturers shut down for holidays, but workers were paid as usual. Moreover, workers’ wages must be paid every month, which requires a large amount of cash.
As market competition intensifies, the textile industry’s requirements for gray fabric products are getting higher and higher. New products and good quality require a good loom as a prerequisite. Therefore, this year There are also many weaving manufacturers that have updated their machines. The editor learned from Boss Bu that a new machine costs about 50,000 to 60,000 yuan, and small and medium-sized manufacturers have hundreds of machines. Therefore, 5 to 6 million yuan of capital is needed to invest in the machine. Based on the current gross profit of 30 yuan per day for a machine, it will take about 6 years to pay back the capital.
A Chunya family The owner of a textile factory complained: “There is really no profit in gray fabrics now. The investment is too big. Our machine and working capital cost 150,000 yuan plus factory rent. A total of 60 million yuan was invested, and the gross profit per year was less than 5 million. Customers still have to pay for it.” If you have to deduct money and remove other costs, what profit will there be?”
To sum up, the current weaving market has low sales prices, high costs, high inventory, and is affected by…Due to the above three aspects, profits are compressed or even lost. With the arrival of the traditional peak season in the second half of the year, the low profit situation may be improved. Cloth bosses, don’t be discouraged, work hard to sell cloth, sell good cloth, and strive to have pork at the end of the year!
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