Textile Industry Crisis And Opportunity Coexist In 2019: Grey Cloth Price War Opens

Under the background of weak global economic growth, insufficient market demand, and constraints of resources and environment, problems such as the resurgence of productivity, foreign trade difficulties and soaring costs are becoming a huge obstacle to the development of the textile industry.

Especially for the textile industry, 2019 will be a year of crisis and opportunity.

Expanding production capacity of foreign grey fabrics

Along with the promotion of environmental protection and supply side reform, in recent years, many textile cluster related clusters have issued the policy of not adding new capacity, and have also eliminated and pferred backward textile production capacity.

However, in the process of "Tenglong bird changing", it should have been a pattern of industrial pformation and resource integration. But in North Jiangsu, Anhui, Jiangxi, Hubei and other places, new factories sprung up like mushrooms, which had a great impact on the market.

At present, this sign has begun to show in the market of Jiangsu and Zhejiang.

"Recently, there have been many foreign sources coming into the market, and the market has begun to fade away, feeling that the supply of goods is not as intense as before."

According to the analysis of the industry, whether the downstream demand can digest the new capacity of the market will undoubtedly become a difficult problem to control the future market. The expansion of the production capacity of the gray fabric in the field will not be able to be digested sooner or later, and the price war will be opened again in 2019.

The price advantage is gone forever.

For the current situation of foreign trade, people in the industry used the word "boil" to describe it.

In the past, the days of relying on price advantage to seize the opportunity were gone forever. Nowadays, with the increasing labor costs and the weakening of international market demand, the textile foreign trade industry is quite "old and honest".

In addition to the great impact of Sino US trade friction, due to factors such as labor costs, raw materials and other costs rising, international market demand weakened and enterprises' innovation capability insufficient, the trend of traditional foreign trade orders decreasing and fragmentation still existed in 2019.

However, due to the pfer of textile industry, the garment industry in Southeast Asian countries is developing, but the development of local supporting industries takes time. Therefore, the international market still needs to import large quantities of raw materials such as yarns, grey fabrics and fabrics from China.

So in general, the foreign trade market of fabrics in 2019 is still not clear.

Spot trading has many advantages.

At present, with the increase of foreign technical trade measures and the intensification of domestic competition, the contradiction between supply exceeding demand is becoming more and more prominent.

However, under such a severe market environment, the market share of some world famous brands has not been reduced, but it has grown larger and larger.

Therefore, starting a brand and setting up a good brand image will become an unprecedented important and urgent in 2019.

Industry experts remind enterprises to establish brand strategy in addition to improving product quality and establishing an intellectual property protection mechanism. We also need to see that because of the wide range of Internet promotion, fast speed, low cost, and the increasing purchasing power of mainstream consumer groups, small and medium-sized textile printing and dyeing enterprises have ushered in a rare opportunity for development. Relevant enterprises can develop their brands from differentiation strategy, new media publicity, innovation and optimization of products.

Better market atmosphere for dyestuffs

Back in 2018, the dyestuff market in China was running at a high level. After a rebound in 2016 and 2017, the dyestuff market has made a good repair for the collapse of the industry in 2015.

Looking ahead to the 2019 China Dyestuff market, the decline in operating rate will be restored.

In the four quarter of 2018, the parking industry in North Jiangsu began to resume gradually. It is expected that after 2019, the effective production capacity of dyestuff in Northern Jiangsu will be restored, and the industrial start-up and production supply will gradually increase.

At the same time, many large dye removal and expansion projects are coming to an end. Some projects are expected to release new capacity in 2019. The increase in production capacity will further lead to a loosening of supply in the dyestuff industry.

In fact, both external and internal factors are not terrible. Thousands of troops are crossing a single log bridge. If enterprises want to get rid of the confusion and rush out of tight encirclement, they must pay attention to market conditions and related policies in a timely manner. The most important thing is to be steady and steady and not to aim too high.