Recently, a friend of the author made a list. One of his old customers asked him for a batch of gray fabrics, but after a while, when the goods were almost ready, the customer suddenly said he didn’t want it anymore.
The friend was very angry and asked the other party why. The old customer said that he saw the same model in stock outside, and the price per meter was almost 0.5 yuan cheaper.
For an order worth tens of thousands of meters, the price difference can be tens of thousands of yuan every time. There is nothing wrong with this choice.
The price of cloth is very important. The price of the same cloth is different, and everyone will be confused
The importance of cloth price is obvious.
Looking more broadly, why can China’s textile industry develop? Why are you moving to Southeast Asian countries now? This is because the local production cost is cheap and the cloth price is advantageous compared to other places;
To put it more simply, it is the example at the beginning of the article. For products of similar quality, customers will naturally choose products with lower prices. No matter how good the relationship is and how often we cooperate, we can’t compete with the other party’s cheaper prices;
In addition, weaving companies now generally have a large amount of inventory backlog, and the price of cloth is getting higher and higher. The more expensive, the higher the value of the millions or even tens of millions of meters of cloth piled in the warehouse;
Finally, the price of cloth also represents the market to a certain extent. Confidence, many times the textile market is similar to the stock market. As long as you have confidence in the market, products can be sold and many problems can be solved.
But the problem is that current weaving companies are deeply troubled by cloth prices. Take a regular 380T nylon yarn as an example. When the market was normal a few months ago, the price was about 4.5 yuan/meter, but now it has dropped by more than one yuan to almost 3.5 yuan/meter. However, the market The spot price of some of these products is 3 yuan/meter, while the purchase price of such products is about 2.6 yuan/meter.
The current price of cloth has reached a very confusing level. The same piece of cloth has four prices. Even Jack Ma may not be able to do this kind of business.
On both sides of the raw material and promotion stations, everyone was dumbfounded when the goods were sold
Raw material prices
The first is the price of raw materials. When the supply and demand situation is basically stable, the price of cloth basically follows the price of raw materials. Walking. When the price of raw materials increases, weaving companies have a reason to increase prices; when the price of raw materials decreases, even if the weaving company’s cloth is woven with previously high-priced raw materials, it cannot be called high price, because other people’s cloth will definitely be higher than the previous high-priced raw materials. Yours is cheaper.
For conventional products such as polyester taffeta and pongee, raw material costs account for the majority of production costs. In years when the market is normal, the prices of such products on the market are basically Just go with the flow of raw material prices.
Promotion
When weaving companies have large inventories, the market is fierce, or capital turnover is difficult, weaving Enterprises will adopt some promotional methods to reduce inventory. Although they will lose some profits, they can always maintain normal operations.
And because the price of promotional fabrics is lower than the market price, traders only need to take in the profits after a period of time and change hands, so they are basically more willing to accept this kind of fabrics, and weaving companies are also Being able to relieve some operating pressure can be said to be a win-win situation in a sense.
Selling goods
But in recent times, there are too many conventional products on the market, and promotional methods It no longer works. At this time, if the capital turnover cannot be restored, but the operation needs to be maintained due to loans, workers, etc., then the only option is to sell goods.
The price of selling goods is generally much lower than the market price, and the quantity is generally not small, and the impact on the cloth price in the market will be very large.
In the example mentioned above, 4.5 yuan/meter is the regular price, 3.5 yuan/meter is the price given after the price of raw materials dropped and the weaving manufacturer’s promotion, 2.6 yuan/meter Meter is the selling price for weaving companies that are in urgent need of capital turnover, and 3 yuan/meter is the price at which traders sell spot goods after receiving the goods sold on the market.
What can I do to save you? My cloth price
The current cloth price in the market has become so confusing, causing very heavy losses to weaving companies, but is there a way to solve this situation?
To untie the bell, one must tie the bell. The main culprit causing chaos in cloth prices is too much inventory in weaving companies and the overcapacity of water-jet looms. The most intuitive way to stabilize cloth prices isWe still need to reduce production capacity.
In July, many weaving companies have begun to suspend production and take holidays, and the production capacity in peripheral areas has dropped to around 60%. Such production capacity reduction may have a certain supporting effect on cloth prices.
For weaving companies with certain strength, producing differentiated products is the real way out in the future. Although the peripheral operating rate is low now, after the market picks up for a period of time, the operating rate is bound to increase back. The problem of overcapacity will not be solved in a short time. Therefore, if you want to survive, or even live well, then We still have to try our best to achieve “we are different”.
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