Through statistical analysis of the total retail sales of clothing products across the country in recent years, it is found that the clothing market begins to improve from August every year until it reaches the peak of the year in December. In other words, we are now heading towards the peak season of the clothing market. For the textile industry upstream of clothing, the hot sales of clothing will inevitably ignite the textile market. The textile market is more than two months ahead of the apparel market, and we textile workers should now be in the process of preparing for orders. However, there has been no peace in the world recently. Major news such as the U.S. interest rate cut, the imposition of tariffs on China, and the RMB exchange rate breaking through “7” have not only affected market confidence, but also increased a lot of uncertainty.
Domestic trade weakened, orders fell, and profits shrank
There is no doubt about the weak textile market this year. The domestic trade market has been under the attack of oversupply of textile production capacity and shrinking demand in the clothing market, and its performance throughout the year has been very mediocre. According to a weaving factory specializing in slub fabrics, they are mainly engaged in the domestic trade market, and the varieties they produce are relatively niche and special. Therefore, their customer base is relatively fixed, and they are relatively confident in the price of fabrics. The right to speak. Although under their control, the profit per meter of fabric is not much different from last year, the total order volume this year has dropped by 20%, which means that the total profit will also drop by 20%.
A company engaged in the trade of functional fabrics reported to us that they do not have a weaving factory, and their pressure burden is not that great in the off-season. However, the recent order reduction has been quite severe, reaching more than 20%, and the types of orders are also biased towards lower-priced fabrics. For example, our recently popular mechanical elastic fabrics have elasticity similar to four-way elastic, but the price is relatively high. Much lower. The main reason is that there are too many negative external factors this year, which has led to customers and traders now waiting and watching. The entire industry chain lacks confidence and dares not venture forward. The orders we have on hand can only be maintained until the end of August.
The current focus of the domestic market is not on orders, but on proofing. A supplier specializing in polyester and cotton products complained to us that they have been making samples recently, and the number is a bit shocking, reaching more than 200. The key is that after sending the samples, not a single order was placed. A merchandiser who often goes to a finishing factory also told us that he often goes to a composite factory for proofing recently. In previous years, he made many orders from this factory, but this year, it has been almost half a year and there has not been a single decent order. Now I can’t even lift my head when I walk into the composite factory. Even if the prototype is slow or damaged, I feel embarrassed to blame them. However, due to customer requirements and boss arrangements, I could only bite the bullet and face the problem, eagerly looking forward to receiving a compound order so that I could straighten my back.
Foreign trade is loosening, orders are placed, and profits are improving
Textile Under the influence of the U.S.’s increased tariffs last year and the sluggish global economy, the foreign trade market once lacked confidence and orders shrunk. However, with the construction of my country’s “One Belt, One Road” initiative and the substantial expansion of other international markets, especially Southeast Asia and other places, the global market’s attention to the U.S. trade war with China has declined and confidence has rebounded. The foreign trade market has gradually come out of the shadows and begun to improve. The most direct manifestation is that the number of orders placed and the number of individual orders have increased significantly.
According to an old weaving factory in Wujiang area, they currently focus on foreign trade, and the overall order situation is pretty good. Now we are long in the F polyester taffeta cotton-feel series. Although the total order volume has declined, profits can still be guaranteed. The most popular products in foreign trade recently should be elastic fabrics. Recently, they have been receiving continuous orders for T400 fabrics, and their profits are much higher than conventional varieties. Another weaving factory has also realized that T400 is becoming popular, but the inventory in the factory is at a high level. It is worried that the market will be fleeting and will not be able to clear the inventory in time, so it can only sell quantities at low prices. Currently, the profit per meter of cloth is only a few cents. .
A supplier who has been engaged in foreign trade for many years told us that their recent foreign trade orders have improved significantly, with orders of more than 50,000 meters for several days in a row. The order has been placed, and there are still more than 100,000 meters of orders in the process of competing with customers, so the possibility of getting it is relatively high. The types of orders we are currently making are basically four-way stretch type, and they are mainly heavier and thicker varieties. This type of product is mainly made for autumn and winter trousers. Customers have relatively high requirements and must come to inspect every order. Good The profit is okay, 15% is still guaranteed.
Recently, elastic fabrics are in a popular position in the foreign trade market. Characteristic and gimmick elastic varieties such as “Honor of Kings” and “T800” are very popular. Customers are more attractive. Although the sales price is not high, the profit is still good, and there are currently many inquiries and samplings.
In year-end clothing At the forefront of the peak sales season, the performance of the domestic and foreign textile trade markets is inconsistent. Due to supply and demand issues, the domestic market has been in a “oversupply” situation for a long time, and it is difficult to get rid of the off-season and find a “bumping upward” path. At present, the overall market performance is relatively conservative , there should have been a lot of autumn and winter fabrics issued, but many suppliers are still stuck in the stage of constantly making samples and waiting for orders. The foreign trade market began to improve after adapting to the changes in the international situation, especially the arrival of orders for elastic fabrics, which gradually opened up the situation. Sales and profits are improving together.
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