This Should Be "Golden Three Silver Four", But Now It Is "Out Of Thin Air": Can Fabric Enterprises Save Themselves By Lowering Prices?

Affected by the global epidemic, many textile enterprises in China are currently taking measures to save themselves. Export to domestic sales It is one of the more common methods. However, due to the limited demand of domestic market, the consequent price competition and bidding have led to a series of problems. Price of fabric products slipped 。

According to relevant market statistics, In April 3rd, Ten S Denim, 32 S Twill, 40 S Combed poplin, 30 S Man cotton cloth, 45 S The average market price of polyester cotton cloth is 8.47 yuan / m, 4.65 yuan / m, 6.68 yuan / m, 3.62 yuan / m, 4.58 yuan / m, respectively, down 10.86%, 12.02%, 11.18%, 4.41%, 3.49% respectively.

Enterprises cut prices to grab market

In the case of high inventory and low demand, the phenomenon of goods dropping on the market is coming one after another. According to market feedback, Since mid March, the price of grey fabric has dropped by 0.1 yuan / m ~0.2 yuan / m, and the individual price has dropped by 0.4 yuan / meter.

A Zhejiang textile enterprise responsible person told reporters. There are two main factors in the price reduction. First, the first half of the year is the critical moment for many enterprises to develop the market and maintain customers. Two, affected by the epidemic, many enterprises have double sales pressure, hoping to stimulate the market by reducing prices. 。 "We mainly do Italy orders. At present, the proportion of domestic sales has increased to 80%, and the external orders have been reduced to 20%. Now, the adjustment of internal and external single industry ratio is relatively common. It is expected that the first half of this year will form a competitive situation in the domestic market.

"At present, the cake in the market is getting smaller and smaller. If the quality is the same, the customers will definitely choose those factories that are cheaper in price. At this time, the company will suffer a little loss. When the epidemic situation is over, the market will get warmer, which will not only win customers' trust, but also lay a foundation for the cooperation." The person in charge explained.

In addition, insiders pointed out that There is also an important contributing factor in the recent price reduction of fabrics, that is, the price of raw materials has dropped significantly, and the prices of polyester and cotton yarn have dropped to varying degrees, so that the price of fabric enterprises has been reduced. According to the China Keqiao textile index, the price of PTA and ethylene glycol has also dropped sharply due to the sharp drop in international oil prices, and polyester filament is also doomed to fail. Xiaoshao area polyester filament market quotation lower than the downward trend, manufacturers quotations fell significantly, POY, FDY, DTY quotations fell significantly, POY3 ~4 30 month on the 4 day decline of 650 yuan / ton ~830 yuan / ton, FDY decline in 700 yuan / ton ~800 yuan / ton, DTY decline in 600 yuan / ton ~650 yuan / ton. Polyester staple fiber prices also fell, Jiangsu and Zhejiang 1.4D * 38MM direct spinning polyester staple center price of 5640 yuan / ton ~5700 yuan / ton, or 350 yuan / ton ~375 yuan / ton. Recently, the market price of pure polyester yarn has fallen by 32. S Pure polyester yarn reported 10750 yuan / ton, or around 250 yuan / ton; 45 S Pure polyester yarn reported 11700 yuan / ton, or around 300 yuan / ton. In addition, Domestic cotton futures prices have fallen below the 10000 yuan mark, which has led to the downstream purchasing dare not act rashly. 。 Xiaoxao cotton yarn market quotation fell by 30, S The price of human cotton yarn was reported at around 13500 yuan / ton, or 300 yuan / ton ~320 yuan / ton; 40 S People's cotton yarn reported to be 14700 yuan / ton ~14800 yuan / ton, or 300 yuan / ton, the human cotton yarn market continued to depreciate.

Insiders analyzed. In the future, the fabric market will continue to fall. "Nowadays, the demand for textiles and clothing is decreasing, and the order reduction is far ahead of last year. In order to get the funds back as soon as possible, the industry may set off a "price war".

Shortage of orders

"Gold three silver four" should be the traditional peak season for textile fabrics enterprises, but now the enterprises are deep in the "mire" of product price reduction. So to speak, The recent market price cuts have exposed the predicament faced by the current textile industry.

According to the weekly report of ~4 of China Textile Industry Federation on March 25th 1, During the week, 190 of the enterprises already started, accounting for 80% of the enterprises whose orders reached the normal level, accounting for 33.7%, and the proportion of the enterprises whose orders were less than normal, 50% accounted for 23.2%. 。 The shortage of export orders is even more prominent. Only 9% of the enterprises export orders reach 80% of the normal situation, and the proportion of export orders is less than 50% of the normal situation. The proportion of enterprises is 61.2%.

The report points out that The shortage of orders has become the primary difficulty faced by enterprises in production and operation. According to weekly and cluster survey data, On March 25th ~4 1, 80% of the enterprises had insufficient orders, the proportion increased 23 percentage points from a week ago, and 85.7% of the industry clusters had insufficient orders, which increased 9.8 percentage points from a week ago.

It can be seen that at present, the competition situation in the fabric industry is extremely grim. Some enterprises are facing difficulties in recruiting workers in the early stage. After many setbacks, employees are recruited back to the post, and they are faced with the dilemma of sharp reduction in orders and a further shutdown. During the Qingming holidays, many enterprises such as Shandong, Henan, Jiangsu and other enterprises indicated that they would take the Qingming holiday appropriately to extend their vacation time to cope with the current market impact.

In view of the current situation, relevant textile and garment industry associations have launched initiatives to maintain market order and fair competition. A few days ago, the Shandong textile and Garment Industry Association issued an initiative: resolutely crack down on unreasonable price reduction and coordinate the establishment of the industry benchmark price.

Industry reshuffle

To be sure, a silent "shuffle" is in progress.

Judging from the recent situation of textile fabric enterprises interviewed by reporters, the directors of enterprises generally believe that In the next period of 2020, the situation facing the industry is likely to be even more grim. This optimistic view is still based on the judgement of the epidemic situation.

A textile practitioner who does not want to be named thinks that the situation of "big fish eating small fish" in the textile industry will be more severe in the future. "Although the industry has been" cold winter "in 2019, we still have hope for the future market, and we will stick to it. But this year, the difficulties of small and medium enterprises in maintaining basic business will be further increased by the global epidemic. He predicted that in the next 3 years, the number of fabric enterprises should be reduced by at least 30%.

"At present, As an enterprise, slimming is the only way. Saving money and living is the way out. " Song Lingyan, founder and general manager of Jiangsu Jingcheng Textile Co., Ltd. Frankly speaking, the impact of the epidemic will be reflected in the whole year of 2020. Later, it will involve technology, comprehensive service capabilities, and even some financial support. For some small textile enterprises, a single sales network will be more difficult to do by price competition, because it is difficult for small businesses to provide comprehensive services. This also means that in this crisis, service focused enterprises will stand out.

China Textile Industry Federation said, At present, the uncertainty of the global epidemic is very high. When the outbreak of the epidemic is still uncertain, it still takes a long time to release the warmer signal in the US and Europe markets. 。 In view of the tension of enterprise capital chain, enterprises are advised to carefully arrange production load, raw materials inventory and investment projects, and vigorously prevent and control capital chain risks. At the same time, we should pay close attention to the supporting measures promulgated by local governments and financial institutions at all levels, and actively strive for policy support. 。 China's export industry chain has a large scale, and the domestic demand market still needs time to fully recover. The consumption characteristics are obviously different from that of the US and European markets.

The China Textile Industry Federation suggests that enterprises should first evaluate their own production mode, management mode and characteristics of the main selling products, and make reasonable choices in the strategy of fighting in the domestic market and opening up other export markets.