Cooling Signals Are Coming In. The Fabric Industry Is Showing Some Highlights.

[foreword] "Is the order good this year?" Faced with this problem, many textile people are anxious. In 2019, the fabric industry was under pressure in a series of games. The market frequently appeared the "cooling" signal, such as the slowdown in product price increase, the decline in turnover and the cold trade.

Although the market performance is not satisfactory, there are still some highlights in the market. The pursuit and yearning of a better life, the technological upgrading of fabric enterprises to go out of the market adversity and the rapid development of the electronic business platform have led to the superposition of several powers, which has accelerated the upgrading of the industrial structure.

Bigger and smaller

Keywords: fragmentation

Influence

In 2019, the fragmentation of orders gradually became a trend. In the past, large orders were no longer.

Regarding this phenomenon, Yu Cunping, the responsible person of Suzhou (Textile) Co., Ltd., said: "although the fabric market is not ideal in 2019, the number of orders on the market is not much less than in previous years. Only tens of thousands of meters or even hundreds of thousands of meters have become extremely rare, and hundreds of thousands of meters have become more small." He said that in addition to the enormous pressure of inventory that the fabric enterprises are facing, the pressure on the inventory of clothing enterprises is also very large. In the future, the number of large orders will only be less than before.

"Now that online stores are booming, customers have higher requirements for delivery time. Upgrading and upgrading of equipment is particularly important. In the case of the environment is not optimistic, our company has introduced a large number of imported equipment this year, achieving a double increase in productivity and efficiency. Yu Cunping believes that whoever can first adapt to this new normal will be able to take the lead in the future textile market.

Industry experts said that today, China's consumer market demand has become personalized, consumers have become dislike and others "bump into shirts", they are pursuing a unique and personalized consumer goods, the change of terminal demand is affecting its upstream supply chain, so clothing brands will also require small orders, short delivery periods and diverse styles when purchasing. In addition, the clothing brand has become more obsessed with "de Stocking". Under the situation of changeable market demand and difficult situation, high inventory is like a "time bomb" for downstream brands, which will bring danger to them at any time, while purchasing small bills and short lists can avoid high inventory risks.

Editor's comment:

Long single become short list, big single into small single, before "one order for a year, a few big buyers to maintain the whole factory" day has become a past tense. With the emergence of more and more personalized demand, the fragmentation of orders will undoubtedly become more obvious. No individual or enterprise can go against the trend. Whoever can better adapt to this trend will get better development.

Low price dumping

Keywords: inventory pressure

Influence

In 2019, a lot of conventional products were thrown off in the fabric market. Many fabric companies sold products at below cost, but there were still many products that could not be sold.

Take the 75D twist free imitation memory fabric as an example. Last year, the price of the fabric was 2.4 yuan / meter, and in November this year, the price of the finished fabric was twenty thousand yuan or more, which was also 2.4 yuan / meter. 75D weft twist imitation memory last year's gray cloth price is around 2.8 yuan / meter, and in November of this year, black products sold only 3.5 yuan / meter. "To know that these fabrics are at least 1 yuan per meter or above, and the cost is not higher than the cost," he said. "A company usually sells 200 thousand meters of cloth per month, but its output is 500 thousand, and production and marketing are hard to balance," said a person in charge of a fake memory fabric enterprise who did not want to be named. He disclosed that the company's stock has accumulated to 1 million 200 thousand meters.

Nowadays, the phenomenon of selling goods rarely seen in the past has become a "routine operation" in the fabric market. "I do not have a large stock of grey cloth here. It is not because customers are driven by much, but they are sold at a low price." Another fabric business owner said: "at present, the larger volume of products is elastic products, other conventional products are still not large, and some products are even unsalable. For example, the grey fabric of T400 series and four side projectile series is the mainstream product. Although the turnover is acceptable, there are so many manufacturers and the stock is so large that most manufacturers are selling at a low price, and the products are not profitable. And some varieties of gray cloth, even if the goods, no one is interested.

Editor's comment:

Someone said, "as long as the price is low, the inventory will be cleaned up." However, this sentence is no longer suitable for today's fabric market. 。

In 2019, dumping inventory can not solve the fundamental problem of overstocking. The reason is that clothing factories are limited in demand, and more are traders who eat goods. They just change their stocks and eventually return to the market. In recent years, the inventory of garment manufacturers is increasing. This is the source of the problem. If the inventory of downstream brands is not clear and the demand for fabrics is weak, then the road to inventory of enterprises is still thorny.

Focus on R & D

Key words: Baotuan development

Influence

Since the beginning of this year, China's textile industry has maintained a low growth rate. According to the statistics of National Bureau of statistics, the industrial added value of China's textile enterprises above designated size increased by 2.4% over the same period of 1~10 months, slowing by 0.6 percentage points over the same period last year. In the same period, the export pressure of textile industry increased significantly compared with the same period last year, and the adjustment of product structure and market structure was speeded up. 1~10 months, China's textile and clothing exports amounted to US $232 billion 310 million, down 2.2% compared to the same period last year.

"There is no doubt that the world economy is sluggish and trade frictions continue to intensify. China's textile industry has been greatly affected, and the pressure on enterprises has been increasing." Yue Fusheng, vice president of Tianzhu alliance and vice general manager of Jilin chemical fiber group, also said that due to the enterprise focus on product development and market expansion of Tianzhu alliance, the overall development of enterprises is still healthy and stable.

"Nowadays, our bamboo fiber has been customized. The bamboo fiber has formed a three-dimensional development system for color, proofing, production, yarn and fabric. Natural fiber leads to consumer fashion with its natural, environmental friendly and skin friendly characteristics. The characteristics of Chulyle fiber, such as dimensional stability, cool touch, upright and slippery, have been recognized in the field of clothing and underwear, especially in solving the problem of standing up of traditional flocking products, forming a unique style. Yue Fusheng said proudly.

Jin Yanqi, executive chairman of Zhejiang Jinsheng Textile Co., Ltd., said that the company always adheres to the market demand concept of green, technology and fashion. This year, Zhang Yichao, the winner of the "Jinke" gold medal award, is endowed with the fashionable attributes of bamboo fiber fabric and is welcomed by the end consumers. "At present, the company's bamboo fiber fabric accounts for 40% of the total product. In the future, the company will intensify its efforts to expand the application area of bamboo fiber and promote the coordinated development of enterprises and alliances while practicing sustainable development."

Editor's comment:

From the data point of view, there are many business days this year is very difficult, but at the same time, some textile enterprises say that they are doing well, and the downturn has not had a great impact on them. This is because the enterprise has its own characteristics, and has chosen the development of Baotuan, which has complementary advantages in the upstream and downstream of the industrial chain, so the impact of the imbalance between supply and demand is relatively small.

Dye price rise

Key words: stop production and rectification

Influence

In 2019, rising raw material prices brought a new dilemma to the survival and development of printing and dyeing enterprises.

"Dye prices began to rise all the way from late March. By May, the price of disperse black ETC300% rose from 47 yuan / kg to 70 yuan / kg." Keqiao District printing and dyeing association responsible person said, the main reason is the March 21st Jiangsu Xiangshui eco Chemical Park explosion, resulting in benzene two amine supply gap, thereby affecting its downstream resorcinol and dye production. At the same time, Xiangshui and its surrounding Guanyun as a major dye production area in China, after the explosion accident, local chemical enterprises have been shut down and rectified, which has become an important factor in the rise of the market.

"In the late March to May, the price of black ETC 300% is not the biggest price increase. Disperse red FB200%, the price of Xiangshui eco chemical park before the explosion is 90 yuan / kg, second days, the dye factory around Shangyu has raised its price to 150 yuan / kg, the latest price of the dye factory has risen to 200 yuan / kg. And the price of disperse blue varieties has also risen considerably during that period. Keqiao dyeing and printing industry association official said that the price of these dyes has risen to two or three times the original price, and the price of the highest price varieties has increased four or five times in 1 months.

The cost of dye leaping growth makes even the Limited by Share Ltd of Zhejiang airlines, a leader of printing and dyeing, also have some problems. Zhu Zhongqing, chairman of the company, said that the cost of dye has accounted for about 22%~23% of the total cost of printing and dyeing. However, if the dye price is calculated after the price rise in March this year, the proportion will increase to more than 40%. "In April 2019, civil aviation shares suspended the purchase of dyes. The price of dyes will fluctuate for a year. When the price is right, we will buy it again. " Zhu Zhongqing said.

Editor's comment:

Facing pressure and challenge, the strong wins and the weak retreats. Printing and dyeing enterprises must make more efforts in management and product innovation so as to survive in the current "inside and outside extrusion" environment. After the wave of the sand, I believe that the enterprises left behind will develop better and better.

Rise of electric business

Key words: comprehensive coverage

Influence

With the integration of "Internet +", textile fabrics have developed into the most popular category in vertical B2B, which is next only to fresh and iron and steel businesses. And a number of fabric B2B e-commerce platforms have been developed, such as search cloth, excellent material, chain, Internet and search buds. Even the star wardrobe has hatched out cloth B2B platform clothes and clothes in place, and has changed the past deserted situation.

This year, the textile B2B platform has announced the completion of the $300 million D round of financing. It has become the largest single round of financing in China's textile and textile industry so far. The current round of financing is led by DST Global, CIC capital is invested, source capital, tiger Global Fund, Yun Kai capital, capital and bull capital continue to invest. Huaxing capital is the exclusive financial advisor of the current round of financing.

Zhao Zhenhong, founder of CEO, said that after the current round of financing, Bai Bu will continue to work hard in supplier cooperation, product development, storage system and customer service, and promote the digitalization and intellectualization of the textile industry, and create a better, more efficient, more transparent and intelligent textile fabric flexible supply chain service system.

In order to solve the pain problem of the industry, the company has set up two major business segments, namely, connecting upstream grey cloth factories and first class wholesalers to create an intelligent cloud factory for grey cloth production; connecting the first level wholesalers and the downstream small and medium-sized garment manufacturers to jointly establish a high-quality trading platform for finished products.

It is understood that at present, the hundred cloth production links in the upper reaches of the industry have systematically covered 10% of loom production capacity, and the downstream trading links are covering 70% of the suppliers and product categories of the industry. Hundred cloth and industry upstream and downstream will continue to innovate together, and work together to build a new ecosystem covering the entire industrial chain of the textile and clothing industry.

Editor's comment:

Textile market as a trillion dollar market, after decades of development, the supply chain is still at a relatively primitive stage, and it is urgent to rely on the Internet for digital transformation. After the effective combination of "diversified, personalized, small batch" demand with the B2B production chain of short, fast and special fabrics released through the Internet, it is bound to break and reconstruct the old textile and garment industry supply chain, and promote the formation of the flexible supply chain.

Transfer overseas

Key word: Overseas investment

Effect: ★★★★☆

In 2019, China's textile enterprises actively integrated into the "one belt and one road" initiative and took the initiative to go out.

Jiangsu Lian FA textile Limited by Share Ltd issued a notice in mid May. In order to make full use of Indonesian resources, labor and customer advantages, expand the local and international market of high-end woven fabrics and enhance the competitive advantage of the company in the field of high-grade woven fabric manufacturing, Jiangsu Lian FA textile and Limited by Share Ltd intends to cooperate with Indonesia PTUngaranSariGarments to invest in the construction of 66 million mm high grade woven fabric in Indonesia.

The joint venture said that the garment industry in Indonesia is gathering, and the demand for high-grade woven fabrics is strong, and the market potential and space are large. As a large local garment enterprise in Indonesia, PTU and its cooperation are conducive to speeding up the promotion of the project, better developing the local market, strengthening the joint efforts and benefiting jointly. The total investment of the joint venture project is estimated at US $190 million, which is divided into two phases.

Xu Yingxin, vice chairman of the China Textile Industry Federation, chairman of the textile industry branch of the China Council for the promotion of international trade and executive director of the China textile international capacity cooperation enterprise alliance, introduced in the 2019 China textile industry "one belt and one road" conference. Our textile industry's external investment volume exceeds US $10 billion, and overseas investment is distributed in more than 100 countries and regions, covering Southeast Asia, Africa, Europe, North America, Australia and other key areas. China's textile industry has injected new energy into the industry's supply chain, industrial chain and value chain in the deep integration along the "one belt and one road".

Editor's comment:

The more we face downward pressure, the more we must find a way out in a broader scope. In 2019, the overseas layout of China's textile enterprises was beginning to take shape. China's textile industry's "going out" business is becoming more and more smooth. Judging from the results of this year's "going out", the backbone enterprises of China's textile industry have significantly improved their awareness of the initiative in the international layout, and have invested and acquired M & A in the fields of high-quality resources, advanced R & D capabilities, technology and terminal channels from the global perspective.