Loom Profit Shrunk, Grey Cloth Money Back Slowly, Textile Boss Cautiously Orders.

Recently, Xiaobian heard one thing:

A shoe factory with thousands of employees recently had a large list (about 100 thousand pairs of shoes), and the boss did not dare to answer it. Because the shipment time required by the customer is before October 15th (the next increase duty time is October 15th). According to the normal schedule and procedure, the proofing and confirmation time will take more than a month.

Since September, there have been too many topics on the textile market: PTA, MEG skyrocketing and plummeting, King Rong Yaocheng exploding money, stocks of large stocks stacked outside the factory buildings, and the production of peripheral mills has been reduced. The market is entering the so-called "traditional peak season", the order is many, but recently the cloth boss still looked at the cold market sigh, asked them to dare to pick up the big list, many cloth boss shook his head, said: careful handling, careless, lose blood!

A cloth boss who has just entered the textile circle said: there are many stores in Keqiao, and will be hung up because of a big order. So I am afraid that one foot has been emptied, so far I have not answered the list.

Admittedly, the current textile enterprises are having a hard time.

Profits shrink by half, and textile bosses are having a hard time.

It seems that this year, the market has been "busy season, the off-season is very light" situation let the textile bosses fear, although this time the total market orders have risen, but compared with the previous year, the total number is still decreasing, many cloth boss even said that low profit has become a surplus in addition to excess capacity.

According to the relevant data, in the first half of 2019, the statistics of 67 major listed companies achieved operating income of 107 billion 520 million yuan, an increase of 0.4% over the same period last year, achieving net profit of 7 billion 150 million yuan, down 15.8% from the same period last year, and the growth of revenue and net profit were further lower than those of 2018 and 2019Q1.

Business income of China's textile and garment industry in the first half of 2016-2019 years (100 million yuan)

Net profit of China's textile and garment industry in the first half of 2016-2019 years

Corporate profits of listed companies have declined, let alone those SMEs. According to the general manager of Changshu, a textile owner, complained that in the second half of the year, apart from shrinking, the decline in profits is a headache. The total profit of the chief operator in the past years is about 100 yuan for each loom. But this year, the maximum profit is 50 yuan, or even lower, and the profit is directly reduced by half. No wonder it is a bad day.

This is not an example. According to the change chart of the two index profit (loss) in the monthly climate index of the Ministry of Commerce in Shengze, the profit of the sample enterprises has been declining since the fourth quarter of last year. The manufacturers say that the cost of raw materials, rental water and electricity, labor, environmental protection and safety supervision has been on the rise in recent years, and the price of the grey cloth has not gone up and down, and the middle profit has been compressed directly.

The poor profit situation has a direct impact on the mentality of the textile bosses, and also encourages them to be more cautious at the time of purchase. This also presents the embarrassing situation that the enterprises dare not take the big bill at the beginning.

Again and again, grey cloth returns faster than shoulder products.

According to the survey, many textile owners were asked if they would pick up a large list. They mentioned 2 key words: money back and profit, of which the most important factor was no return.

This year, affected by the downturn in the environment, the problem of receivables which has been gradually improving has come earlier than in previous years. Some textile bosses run between customers at the end of each month and ask for payment.

"If we don't pay the old customers more than 1-2 months' repayment time, they may choose to cooperate with others, so we can only give in now." Shengze area, a simulation silk boss Yang general said.

It is understood that the general grey cloth sales model is the old customers monthly knot, the new customer takes the goods to pick up the goods, the finished product sale pattern is the 30% deposit, then obtains the goods in the appointed time, generally in 1-3 months or so, but this year accounts receivable condition is not ideal.

"The original debt accounts for the monthly knot, now customers generally have to be 2 months, or even 3 months, grey cloth arrears time and finished product debt time is shoulder to shoulder!" Yang said.

"Large orders are generally low profits, so we can only consider the refund, if the money back in time, then we will consider the connection, otherwise we will still choose to give up, after all, we are also very pressure, while calculating profits, while also thinking about how to retain customers, but also to consider the risk factors." Chen Zong, a trader in Keqiao, said.

Facing the current complex and changeable market, "no shortage of excess" has become the voice of many textile cloth owners. In fact, not only in Jiangsu and Zhejiang provinces, but also considering the large capacity of the market and the increase of comprehensive cost, the weakness of the whole industrial chain pressure has been formed. Many textile bosses who go to the outlying areas will also "pick" customers. After all, considering that the market risk will increase in the future, they must be "foresight" and not be blinded by big bills.