It Is Difficult For One Party To Make An Order And One Party To Pay For The Goods.

Since the beginning of this year, the entire textile market has been very mild. Even the traditional 3 and April peak season has no bright eye, let alone any other off-season months. Fortunately, there is also a bottom line. In this hot summer, the entire textile market has fallen to the lowest level in the year, and there has been a rebound trend. Taking the opening rate of looms in Jiangsu and Zhejiang provinces as an example, it began to stabilize and rebound when it fell to about 7, and the dye plant's starting rate also rose about 10%.

The increase in production load of textile industry is, in the final analysis, a change brought about by the termination of orders. In other words, whether this time can keep you busy is entirely up to your customers to place orders. Customers, as the most valuable resources of enterprises, are related to the survival status and future development potential of enterprises. But now the performance of each company presents a state of "ice and fire".

Lack of orders for domestic trade, foreign trade orders

Through market visits, it is found that there is a clear gap between domestic and foreign textile industry. Domestic demand is low, orders are scarce, and foreign trade orders are increasing.

Domestic clothing market downturn is the root cause of the lack of domestic trade orders. Through the statistical analysis of the total retail sales growth over the past year, we can quantify the domestic textile and apparel market. It is clear from the chart that the growth of clothing retail is slowing down, even negative growth. On the other hand, the supply of textiles has not been able to synchronize with the slowdown in garment growth, resulting in a year-on-year increase in textile inventories close to two digits. The slowdown in demand growth and the increase in inventory growth results in the "oversupply" of the entire domestic textile and garment market, and the number of people who have a small cake does not decrease. Therefore, the shortage of orders in the domestic market is a matter of course.

Textile foreign trade market is short of confidence and orders are scarce because of US tariffs. But with the development of other international markets, especially in Southeast Asia and other places, as well as the global market's declining attention and confidence in the US trade war. The foreign trade market has gradually stepped out of the shadow of the trade war and has begun to improve. The most direct manifestation is the number of orders placed and the number of individual orders increasing significantly. According to the data obtained by the General Administration of customs, the export volume of textile related products in June 2019 was nearly 69 billion 930 million yuan, up by 3.5% over the same period last year, and 396 billion 467 million in 1-6 months, an increase of 6.5% over the same period last year.

From the point of view of traders, whether there are foreign customers in the hands or how many foreign trade customers are deciding the future fate of the company.

Foreign trade payment is difficult, foreign trade payment is in time.

For a long time in the business arena, the owners of every size and size have met with the situation that money is not timely, difficult or even impossible. In particular, this year's market, the original order will rarely encounter money again or not, it really adds up to the damage and salt on the wound. In fact, whether the payment can come back in time is also a criterion for evaluating the quality of customers. Some customers will not give you the opportunity to ask for money, the money will come back on time or even in advance. Some customers will not be able to pay back the money if they are sitting in his company all day. At the same time, bosses who have done internal and external trade will basically find a rule, that is, they do not need to worry about the money of foreign trade, and the possibility of domestic trade loans is more likely.

Recently, the operation of a well-known Brand Company in China is not very good. The sale of clothing is 2-3 fold, or even closing stores to make high inventory and hundreds of millions of losses. There are many companies in cooperation with Wujiang. According to feedback from one of them, in 2015, a group of goods, worth about 400 thousand, had not been given until today, and now it seems that the possibility that the money can be returned is not large enough. There is also a supplier who is in arrears of up to 20 million of the amount of money, before proud and regarded as God's customers, but now has become the largest debtor.

For a small company, the performance of a company is also a microcosm of many similar companies in China. For a variety of reasons, it is very difficult to deduct and default on the loan, but it is very difficult for many suppliers to accept the debt. And the corresponding foreign trade customer performance is much better, and do not say that the customers from the developed countries how to pay in time according to the contract, even those from poor and backward countries also make people feel more relaxed and relieved.

A trader who has worked with Southeast Asian customers such as India, Bangladesh, Vietnam and so on always gives feedback to us. These foreign trade customers generally do not arbitrarily deduct money. Unless your goods have quality problems, he will also inform you that you will pay more appropriately. No payment has been owed for more than a year, and some customers even pay for the goods within a week. There is a Bangladesh customer who has been working with each other for a long time. They are very familiar with each other and trust each other. They often play more part when they fight, for example, they have spent more than 100 thousand dollars recently.

In the final analysis, the difference between domestic and foreign customers' orders and return is, on the one hand, the market situation, and more importantly, the different attitudes towards the fulfillment of the contract. At present, domestic textile production capacity and market shrinkage are the best way for many suppliers to get rid of the international market in a timely manner.