Oxford Cloth Sales Decline, Profits Decline, The Market Is In A Bottleneck Stage Of Development.

Oxford cloth is a more conventional textile. Its gray cloth has the advantages of strong drape, novel style and good waterproof performance after printing, dyeing and coating process. It is mainly used for producing all kinds of luggage products.

This year, under the impact of unfavorable factors such as water jet loom transfer and Sino US trade friction, textile market performance was not satisfactory. Oxford cloth as one of the traditional textiles, under such a market situation, what kind of performance will it have?

Under the pressure of trade friction, demand has declined significantly.

To sum up the sales quotas of a certain textile product this year, Sino US trade is always a topic that can not be passed around. The Oxford cloth market is also like this, which has been greatly suppressed by Sino US trade friction.

Trade friction between China and the United States has started since last year. In July 10, 2018, the United States announced the 200 billion 10% tariff increase list, which actually included Oxford cloth and its subsequent products, which caused tremendous pressure to Oxford cloth and luggage manufacturers. In May 10th this year, 10% of tariffs went to 25% at a time. It is unacceptable for both Oxford enterprises and luggage enterprises.

Tao Wei, the head of a textile trade enterprise, said that there was a customer in the lower reaches of this year. 2 American brands were suspended this year. One of them was WAL-MART's 40 thousand metre Oxford cloth order. The cloth was all woven, but the list was suspended indefinitely, and the cloth could only be stacked in the warehouse.

Yao, the head of the textile business who was also released by another chief sand company, also said that the impact of Sino US trade was really great. In the first half of this year, there was a large list finalized at the end of last year. By the time of 3 and April, it had already done more than ten million meters, and everything was going well. As a result, the subsequent part of the list was cancelled in May.

In order to deal with Sino US trade friction, many luggage enterprises have chosen to shift their factories to Southeast Asian countries.

Zhao manager, a sales manager of a large textile foreign trade enterprise in Jiangyin, said that their company mainly targeted at the Southeast Asian and India markets. This year, with the sharp decline in the export volume of conventional textiles such as spring Asian spinning and polyester taffeta, the export volume of Oxford cloth has not been reduced, but the finished goods and bags have been exported to Europe and the United States.

It can be said that Sino US trade friction not only suppressed the normal production and operation of Oxford cloth enterprises, but also accelerated the pace of transferring China's overall textile industry chain to Southeast Asian countries.

Keeping the "one mu three points" is less than the previous one.

After the suppression of Sino US trade friction, how is the life of Oxford's cloth enterprises? After investigation, we found that most of the Oxford cloth enterprises are not having a good time this year.

A manager in charge of Oxford cloth trade, Wang manager, said that the profits of Oxford's cloth had dropped considerably this year. Taking the routine 210D Oxford cloth as an example, the profit of running volume in the past years was around 0.4 yuan / meter, and now it is only about 0.2 yuan / meter.

Another sun boss, who made nylon Oxford cloth trade, also said that this year's sales fell by about 30% compared with that of last year. Because of the raw materials, the price of cloth has also dropped by 30%, and the cost of dyeing and printing has gone up very much, so the overall profit has dropped considerably.

But on the other hand, although sales are decreasing and profits are falling, compared with traditional products such as spring Asian spinning and polyester taffeta, Oxford's "day" is still much better.

On the one hand, Oxford cloth has already formed a relatively mature supply chain in the market. It is not easy for new enterprises to join them, and the profit that they can get is not high at all. It seems to outweigh the gains. On the other hand, the volume of cloth in Oxford is much smaller than that of the traditional "big road cargo".

It can be said that although Oxford cloth has been suppressed in demand, but because there is not much capacity influx, although it has declined slightly compared with last year, it has not fallen to the point of "selling goods for survival".

The problem of receivables is grim. This year is not easy.

For Oxford cloth enterprises, though this year's market is a bit worse, it is not unacceptable.

Towards the end of the year, the most important thing for Oxford cloth enterprises is "brain pain" or receivables.

Affected by the sluggish demand for the downstream market, the problem of receivables has begun to grow grim this year. Unlike the old "arrears" of old people, this year's downstream businesses really do not have the money to take them out.

First, the reason for the cancellation of the order. It is mentioned that in May 10th, when the United States suddenly raised the tariff rate, many orders were suddenly cancelled. Some of the fabric finished products had been generated and shipped out.

In addition, there is also the problem of the normal operation of luggage enterprises. Pinghu, Jiaxing, is one of the main production groups of luggage and bags in China. A large part of them are exported to the United States after OEM. After the United States increases taxes, the profits from the foundry industry are not enough to levy taxes. Therefore, let's not settle the accounts receivable. Some of the luggage enterprises have even started their own normal operations.

Compared with traders, the accounts receivable situation of weaving enterprises is even more intense, because this year, the general funding of textile industry chain is relatively tight, and one of the links is out of order, which will lead to a series of receivables. And weaving enterprises to buy polyester raw materials need cash, goods, equal to the entire textile industry chain credit sales of the most upstream, the need to "receive the most disk", the risk will naturally become the largest.

Development is entering the bottleneck stage, and we need to get through the "upward" channel.

From a macro point of view, the development of Oxford cloth in Shengze has entered a bottleneck stage of "high failure, low demand".

In terms of low-end products, Jiaxing area also produces Oxford cloth, but compared with Shengze area, the price of cloth cloth in Oxford is relatively lower, and the cost of dyeing and finishing is cheaper.

In terms of high-end products, today's high-end Oxford cloth is still an absolute dominant position in Taiwan, Europe and other places, and there is still a certain gap between the quality of Shengze's local products and their products.

One sun boss, who made nylon Oxford cloth business, said that the price of finished nylon Oxford cloth was about half more expensive than that of the same specification of polyester products, and the relative value added was higher. However, there were not many local enterprises that could produce this strength. All of their products were from Taiwan's grey cloth and then sold in Shengze after processing.

Nowadays, ambitious and powerful Oxford cloth enterprises are trying to upgrade their technical level in order to get through the high value-added high-end product passageway, among which renewable environmental protection and military products are the most popular trend in recent years, which may provide an opportunity for the local textile enterprises to "overtake".

As one of the conventional textiles, Oxford cloth can not be widely used in clothing because of its limitations, so the overall volume is limited. In the case of declining demand and overcapacity this year, Oxford cloth has no way to be independent. But because there are not many reasons for vicious competition, it is better than spring Asian spinning and polyester taffeta.

Nowadays, the Oxford cloth market is caught in a bottleneck stage of development. It is urgent for textile enterprises to upgrade their technological level and develop towards the high-end line.