Garment Demand Upgrade, Conventional Fabrics No Longer Sell Well, The Era Of High Profits Or Will Be Gone!

When I first entered the textile industry, I heard a boss say that in a few years, the profits of ordinary chiffon, tangled and peach skin can be easily over ten yuan per meter. After 2010, profits began to drop sharply, but the profit of 35 yuan per meter was also very easy, and now the textile profit can be described by two words.

From the analysis of the turnover and profit of textile industry published by the National Bureau of statistics in recent years, the textile turnover is expected to decrease year by year, from 350 billion in 2017 to about 200 billion now. The textile industry's profit is diving at the first level, which has dropped from around 4.7% in 2017 to around 3.9% now.

The principle of "small profits but quick turnover" is invalid in today's textile industry. From the perspective of the trend change reflected in the macro textile data, the turnover rate and profit margin of the future textile industry will continue to decline. The textile peak season is no longer a month or quarter, but a year or even a few years. Unfortunately, we are in the off-season now.

One

Excessive volume and difficult market transformation, market adjustment profit transfer

01

Conventional fabrics are not selling well.

The textile industry was made up of all kinds of gold bowls and rocking Qian Shu, but this year's textile business is hard to do. When the global economic situation is uncertain and the demand is sluggish, the United States will continue to impose tariffs on China to attack China's exports.

Conventional fabrics are particularly lacking in voice this year. In the face of 40 days or so inventory, many billet traders basically sell as long as customers ask for a price. In the past, the profit of the ordinary Satin grey cloth can be nearly 0.2 yuan per meter, and now the 10 Fen profit can not be guaranteed. If the price of raw materials falls again, it will basically be sold at a loss. The links in the textile industry chain are closely related. The relationship between the rise and fall of fabrics and the processing of printing and dyeing and finishing is closely related.

02

Supporting factories are tough days.

Taking dyeing factory as an example, all the simulation silk dyeing factories were unattainable when the simulation was hot. Queuing and money are normal. Orders are slow or even bad. But today, with the decline of conventional silk products, this type of dyeing factory has also come to the crossroads of transformation.

A simulated silk dyeing plant in Wujiang has one hundred dyed cylinders. The profit of the first two years can reach more than 40 million. When the order of simulated silk dropped sharply this year, they immediately changed to other fabrics such as elastic fabrics, but the transformation was not as easy as turning around. The dyeing plant's operating rate has been fluctuating between 50%-90% this year, and it has never been running at full capacity. The cost of rent, labor and environmental protection has not been reduced because of the reduction in orders. It is conceivable that this year's profitability will be much less than that of previous years.

At present, all the unsalable products on the market are basically the regular varieties that have been selling well for many years. The processing factories involved are the most perfect, the most mature technology, and the huge volume makes them very difficult to transform. Transformation is lagging behind, so it is difficult to meet the market demand.

High profits in the past are gone forever, and more factories are even hovering near the profit and loss line. Is the textile industry really not able to get a high profit again?

Two

Consumption upgrade fabric value enhancement, profits more rich.

01

Profit ten yuan per meter order still exists.

According to the person in charge of a professional cotton and linen fabric manufacturer, he is a specialist in hemp fabrics, and chemical fiber fabrics do not care. Basically, none of his products are 100% kinds of raw materials. They are made of two or more interlaced or blended materials such as linen, Tencel, silk, cotton, silk and so on. They are complex in composition, special in technology and high in added value. In general, the price of his fabric finished products is 40-50 yuan / meter, the profit will not be less than 10 yuan / meter, and the amount of each order is maintained at 20000-40000 meters. Compared with the profit of one or two yuan or even a few wool for ordinary fabrics, ten yuan per meter is astronomical.

Most of his fabrics are his own research and development, familiar with fabric characteristics, advantages and disadvantages, and possible problems. But outsiders copy or blindly pick up similar orders, often difficult, and the gains outweigh the losses. The unpractical properties of strange fabrics are virtually a fortress for self-protection, ensuring customer loyalty and ensuring their high profits.

02

Clothing market adjustment, fabric value enhancement

This change is mainly due to changes in the clothing market. With the increase of residents' income, the growth of the middle class and the upgrading of consumption, people are willing to spend more money on clothing, and the quality of clothing begins to shift from the low end to the high end. This phenomenon has been going on for many years, but most of them are concerned with clothing from fabric, even if the clothing design is also designed to make a good draft, and then add fabric to the picture, ignoring the role of the fabric. The trend of fashion design is to design garments based on fabric, that is, fabric design and fabric value and requirements.

Textile and garment industry as a just demand is not going to disappear from the market. It will only focus on the adjustment of the key products. How to harvest high profits in a generally low profit market needs to follow the trend and make our products meet the needs of the market. Today's textile market demand is definitely not in conventional fabrics. Differentiated and distinctive fabrics are the main characters in the textile stage.

Conventional fabric varieties are generally low grade, difficult to support high-end clothing requirements, while high-grade, small and innovative fabrics can make designers brighter, making clothes fundamentally different and high-end atmosphere. Of course, the fabric of high-end clothing will never be disappointing.

Whether the profit is high or not, the ultimate starting point is the value of fabric products. Conventional varieties have reduced the profit margins of the entire textile industry with their huge volume, but the high profit textiles still exist, but the road to it is not so easy.