The Winter Has Come To The Textile Industry.

Recently, La Natsu Bell closed 13 stores every day, causing heated debate. According to reports, as of June 30, the number of retail outlets in laxabel was 6799, a sharp drop of 2470 in half a year, with an average of 13 stores closed every day. There are a lot of unclosed stores in the clearance sale, the original price of 1099 yuan clothes, discount down more than 400 yuan. All in all, the performance is in serious deficit. This is a case of textile and garment industry or a phenomenon, so the author makes a brief analysis.

It is understood that since entering 2019, the number of enterprises in textile and clothing industry has been hovering between 13637, a larger gap from the average of 14555 in 2018, and the number of textile and apparel enterprises in August 2019 is 13660, almost 4 years low. Sure enough, 19 years later, the profits of textile and clothing industry are shrinking. From May to August 2019, the total profit of textile and garment industry is - 1.3%, - 0.8%, - 3.5% and - 1.1% respectively year on year. Business people pursue profits, the industry development is sluggish, the profits are falling, and the number of enterprises will inevitably decline as the practitioners change their careers or even go bankrupt.

Although the number of textile clothing and apparel industry is decreasing, the proportion of loss making enterprises is rising. The average proportion of loss making enterprises in 16-18 years is 14.9%, 14.1% and 18.2% respectively. In 2019, the average proportion of loss making enterprises is 21.5%. In other words, 21.5 of the 100 textile and clothing industries are loss making. According to my network of agricultural products, the export of textile and clothing is blocked, the domestic market is under great pressure of competition, there are more than enough people, the price war is intensified, the profits are naturally declining, and the losses are not hard to imagine.

The textile and clothing industry has not only declined in quantity, but also the quality is much worse than before. As shown in Figure 2, after 2019, the number of loss making enterprises in China's textile and clothing industry is increasing, especially after April. From April to July, the number of loss making enterprises was 10.2%, 7.2%, 9.2% and 10.1% year on year, and even more surprisingly, the number of loss making enterprises in August increased by 14.1% year on year. It is not hard to imagine that the growth rate of loss amount of China's textile and clothing industry in 19 years is expanding. The accumulated amount of loss in August increased by 33.3% year-on-year, and the average year-on-year growth rate from January to August 2019 was 29.8%. From the data point of view, this year's textile and clothing market is clear at a glance. No wonder practitioners say that this year's profits are shrinking, not making money, and even some say that "no loss is win".

The situation abroad is also not optimistic. Andromer, one of the US sports apparel giants, lowered its full year forecast for fy19f. To cut costs, they closed underperforming stores, cut jobs and reduced product procurement costs but still narrowed their net loss to $17 million.

All in all, the loss of textile and garment enterprises is not an example, and the industry as a whole is in short supply. The survival of clothing enterprises is difficult, and it is transmitted to the weaving factory. The orders of the cloth factory are weak, and the price still has a downward trend. The profit of the cloth factory may be narrowed again. According to the observation of my agricultural products network, the conventional cotton varieties are abundant in stock, the domestic supply pressure increases; the inventory removal is slow; and the phenomenon of selling goods increases, the price performance is weak, among which 21 pieces of gauze, 32 pieces of fine oblique, 40 pieces of poplin prices are at the historical low level in the past four years. Therefore, no matter from the perspective of the industry or the grey cloth market, it is an indisputable fact that the textile and clothing market is weakening. The winter of the textile and clothing industry has come.