Textile Small And Micro Enterprises Are Under Heavy Pressure Of High Inventory

stay clothing The upstream spin The industry is also overwhelmed by the high inventory. According to the "Field Investigation Report on Small and Medium Sized Filament Weaving Enterprises in Summer 2013", the inventory problem in the textile industry is getting worse. In addition to the pressure of difficult recovery of accounts receivable and diluted profits due to vicious competition, some small and micro enterprises are worried about their living conditions.

According to the China Filament Weaving Association, the main target of this survey visit is small and medium-sized enterprises. The production scale of most enterprises is within 300 looms, and some are family workshop micro enterprises with less than 100 looms. After investigation, it is found that the pressure on finished goods inventory is quite common. "In the current complex market environment, enterprises are faced with a difficult choice: to sell at a loss or to shut down production. If they do not choose, they must face a large backlog of inventory and a sharp rise in accounts receivable."

The report shows that the average inventory of enterprises visited in various regions is 2-3 months, and the inventory of individual enterprises has exceeded 4 months, even up to half a year. Shengze, a small enterprise that has stopped production, has an annual output of 3 million meters, but its inventory has exceeded 5 million meters.

According to the analysis, the large increase in inventory was first attributed to the depression of the overall manufacturing environment. After the European debt crisis, the global economy did not recover, demand continued to be sluggish, and the order volume dropped sharply. According to statistics, the order volume of the above research enterprises dropped by an average of 1/3 or even 1/2, even shrinking from hundreds of thousands of meters and tens of thousands of meters in previous years to thousands of meters.

In addition, there is a serious problem in the current textile enterprises: optimistic about future estimates. According to the accumulated experience, the enterprise operators make a prediction for the later stage of the market to arrange production, and expect the seller's market in the next quarter to arrive as soon as possible. Once there is a deviation in the judgment, it will lose everything, leading to the shutdown of the enterprise. This has also become an important reason for high inventory.

In addition, the impact from international competitors should not be underestimated. The filament weaving industry in India, Bangladesh, Myanmar and other countries is developing rapidly and beginning to occupy the market share of China's low-end products. In particular, compared with the above countries, the labor cost advantage of China's textile industry no longer exists. At present, the wages of workers in China's textile industry are all in the range of 3000 to 4000 yuan, while the wage level of a textile worker in Myanmar is only 600 yuan/month.

In this regard, the China Filament Weaving Association warned that the large increase in inventory occupied a large amount of funds of the company, resulting in a tight cash flow. "If the market cannot recover in the short term, enterprises need to destock at a low price, which will evaporate some assets."