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    The Economy Has Entered The Cold Winter, Even The Most Profitable Industry Is Also Difficult.

    2020/1/3 10:41:00 0

    Market Quotation

    It is time to conclude the year-end bonus by the end of the year.

    Since the beginning of this year, the global economy has been in a state of panic. Not only is the textile and garment industry, but many famous old enterprises have fallen into financial and inventory crises. In the relative economic downturn, everyone is having a hard time. Many enterprises are tightening their belts for the winter as early as possible.

    Legend has it that the industry that has made the most money and money recently has launched a massive layoff.

    Since July, Deutsche Bank has announced plans to lay off 18 thousand people around the world by 2020, which is 1/5 of the current number of employees of Deutsche Bank.

    In August, Barclays, one of the largest banks in the UK, announced that it had laid off 3000 people in the two quarter, accounting for 3.6% of the total 83 thousand and 500 employees in the end of 2018. The reason for layoffs is that the economy has entered the cold winter. "The business environment this year is obviously facing challenges." Recently, Italy has also joined in the global big banks' layoffs. Yuxin bank, the largest bank in Italy, announced that it had laid off 8000 people and closed 500 outlets to cope with Italy's slow economic growth and negative interest rates.

       The financial sector has laid a heavy hand on layoffs. What about the textile industry?

    Why is the most profitable industry difficult? The financial sector has laid a heavy hand on layoffs, and manufacturing is not much better. As a textile and garment industry in manufacturing, actually, this year is not easy.

    After all, the whole global economy is not good, the foreign trade market is constantly in conflict, and the terminal consumer demand is also shrinking. This leads to the "textile market" which was still "advancing vigorously" last year. Many domestic and foreign brands choose to close stores to reduce costs, and some weaving enterprises also save money by various means.

    There are textile people sigh: under the nest, do you have eggs? The threshold is too low, the imbalance between market supply and demand is enlarged by this environment.

    A: closing a factory

    A is a veteran textile factory that has been established in the market for more than ten years. This year, it also closed one of its factories, and some workers were assigned to another branch factory. The rest of the workers could only be dismissed.

    B: eliminating 1/3 machines

    The B factory has hundreds of looms. The boss has been running away from 1/3 machines this year because of the pressure of operation.

    C: selling machines in November last year

    C textile factory was originally a processing order, with 30 looms. The boss also sold the machine in November last year and disbanded the workers who had been with him for several years.

    Many industry insiders predict that 2019 will be a turning point for the market to flourish and decline. Why is the textile market so laid off and shut down?

    01

    The first reason is that domestic demand and foreign trade are both weak, which directly leads to a decline in factory sales.

    This year's demand for the entire textile market is not as good as that of the same period last year. Many downstream garment factories and brands themselves had more inventories last year, resulting in poor inventory performance, thus inhibiting the enthusiasm for purchasing upstream fabrics, resulting in a shrinking domestic demand market overall sales this year, especially in autumn and winter. Last year, most clothing enterprises expected to store up their winter clothes in cold winter. As a result, the warm winter was expected to arrive, and the planned rhythm was hit bottom.

    Domestic trade has been affected by the Sino US trade frictions this year, and the US orders have shrunk. The enterprises that used to focus on the European and American markets were relatively "injured". For example, a foreign fabric enterprise in Shaoxing has been dissatisfied with this year's machinery and maintained at a low level of 5, because of the sharp decline in orders.

       02

    The second reason is that the market is difficult to make profits and the funds are tight.

    In the textile industry, if you start a profitable company, it may take only 1 years or even less. If the market is like "2017" and "2018", the most common jet Taff can earn 160 yuan a day, and 100 small looms can earn 16000 a day, and about 5800000 profits a year. However, this year's market is "tumultuous", the market is not good, the supply and demand imbalance, prices fall into the trough, and the profits of manufacturers are also diluted and diluted. Recently, the rate of polyester taffeta has dropped to 10 yuan or even lower. The poor performance of the profits has led manufacturers to become more nervous this year than before.

       03

    The third reason is that the consumption pattern of the Z generation is changing and the demand for conventional products is diluted.

    Z generation (1995-2009) was born. If Y generation (1980-1994 years of birth) grew up with games, computers and the Internet, the Z generation grew with the mobile Internet, hand travel and animation. At present, the number of Z generation population in China is 230 million.

    According to the insiders, the Z generation is the mainstream of China's clothing consumption in the future. Its unique characteristics of the times and the group form new needs, new culture and new economy. When buying goods, it is no longer purely the quantity, quality and price of goods. They pay more attention to emotional satisfaction, psychological approval and experience in shopping process. Therefore, they are no longer accepting conventional products, but instead seeking personality trends. This is even more difficult for the old textile business, which dominated the mainstream market with conventional products.

    04

    The fourth reason is that automation has gradually replaced simple labor.

    Of course, in addition to the poor market situation affecting the operation of enterprises, with the rise of labor costs, more and more excellent enterprises are seeking "machine replacement" to upgrade, such as automatic picking Brown reed machine, therefore, the demand for some skilled workers will also be reduced.

    Xiaobian wants to say that in today's environment, the days of "earning money" as before are gone forever, and many textile bosses are worried about next year's market. Of course, throttling is only one of the thousands of ways of doing business. Near the Spring Festival, there are still many textile bosses worried about the employment situation after the Spring Festival. I hope that in the past year, "labor shortage" can be alleviated this year.

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