Textile Giants Are Also Cancelling Orders. The More Lethal Thing Is The Price War.

With the intensification of the new crown epidemic overseas, the multinational economy is on the brink of collapse, and the textile industry has ushered in the most history of withdrawal and abandonment. In March 21st, friends of the circle came out with such a screenshot. Some netizens said, "Futian, one of the world's largest knitted fabric manufacturers, cancelled 4500 tons of orders a day, including hundreds of tons of them," which made many textile companies feel chill.

Some netizens broke the news, but the cloth was already on board, but it was cancelled.

"The quantity and color of the order have been talked about, and we can say that we can go ahead, but we can not contract. It took us two weeks to send the contract. We never dared to do it without a contract. We wasted two weeks. And the customer's next contract is so hesitant that we are also very nervous now, for fear that half of the order is cancelled, and grey cloth and dye input are wasted, and a lot of inventory is added. A textile trader said helplessly.

Some factories have already issued a notice to a single customer.

Measures are being taken to strengthen control and control in many countries, including curfew, travel restrictions, closing borders and suspending public transport services. The entities were damaged, and many countries exercised force majeure and countermeasures. The withdrawal of textile trade enterprises is becoming more common, and export enterprises are facing severe tests. With the spread of the epidemic around the world, the demand for major textile and garment markets in the world will drop, and the affected market will not only be as simple as that of last year, but the problem of overcapacity will also become more prominent.

At present, the textile market is in a low season, which is the consensus of the overwhelming majority of people. Of course, this situation is inseparable from the impact of the epidemic of pneumonia and the weakening of the global economic situation. There is no clear answer to how long the impact can last. There is also a panic in the market. No one knows when his client will return the bill.

Considering that the latter market will be in a severe state, some printing and dyeing plants no longer consider recruiting new employees.

According to the feedback from textile and garment enterprises in Guangdong, Jiangsu and Zhejiang, Shandong and other places, clothing in spring 2020 was heavily in stock due to epidemic situation, logistics and market closes. Some manufacturers sold less than 20% of the planned sales volume. At present, the biggest variable is autumn and winter orders. Internal and external trade is just like "hot potato" (usually a longer period, larger quantity, larger amount). After receiving the purchase, the buyer is worried that the buyer will cancel the order due to the end of the epidemic, resulting in a large backlog of products and the risk of bankruptcy. Otherwise, the 4-5 month may fall into a dilemma of shutting down production.

Textile enterprises are fighting for a price war.

Under the condition of high inventory and low demand, the textile bosses will generally be faced with the pressure of inventory and capital. The yarn and grey cloth in the warehouse have already occupied a lot of money. Wages, water and electricity, rents and so on must be paid in cash. In this case, if the product is not realized, unless the big family is big enough, there will be no pressure on the capital, otherwise the enterprise will not be able to sustain it. Enough cash can ensure the healthy operation of enterprises.

With the suppression of these two mountains, the phenomenon of selling goods is increasing. After visiting the market, many enterprises have said that the price of their customers has been more frequent recently, and many times they are arguing for 1 cents. But now that the demand for domestic and foreign trade is shrinking, the price can be made with the old customers. Sometimes, even if they lose money, they can only eat the yellow lotus in order to keep their customers and for long-term cooperation in the future.

"From the opening to the present, we sent a lot of samples, especially those sent to other countries. Some countries have to send thousands of express charges, but they haven't received any of them. This part of sample proofing costs can only be borne by ourselves." A foreign trader reluctantly said.

At present, the cake in the market is getting smaller and smaller. If the quality is the same, the customers will definitely choose the factory cooperation which is cheap. At this time, the textile boss will suffer a little loss. When the epidemic situation is over, the market will get warmer, which will not only win the trust of the customers, but also lay the foundation for the cooperation.

In addition, in the market downturn, many manufacturers will consider reducing production and holiday. In last year 7 and August, many factories and dyeing factories set up high temperature leave, but this year this situation is likely to be ahead of schedule. If the next order is difficult to continue, many manufacturers will consider reducing production or even having a holiday. In the short term, it is suggested that the larger stocks should be allowed to go on the market, and the transaction can be allowed to make profits; the lower inventory prices can be temporarily stable, and insist on the principle of production according to single production, along with production and strict control of stock.

"In 2020, no profit is required, only to survive. Sometimes the danger is organic. It depends on whether the enterprise can grasp this opportunity." A textile owner who has ploughed textile for more than ten years said. Next, textile people should pay close attention to the epidemic situation, especially export, make sure that the customers can receive timely goods and prepare for the off-season.