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Textile Industry Most "Light" Off-Season: Millions Of Stocks, Hard To Pay!

2020/6/22 11:40:00 1

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Textile Industry

The recent outbreak of epidemic in Beijing has not only made the nerves of domestic epidemic prevention strained, but also put a shadow on the textile and garment industry in the off-season. The textile industry is doomed to encounter the most "mild" off-season this summer.

"Now the factory start-up rate is 80%, inventory about 1 million meters, orders relative to the previous year reduced by 6-7."

"Our factory has only opened 4 looms now, and orders have been reduced very much. From the second half of May, we have not received orders yet."

"The factory's start-up rate is now around 50%, and its inventory is about 3 million meters, compared with last year's orders this year, 60%."

...

At present, the reduction of orders by more than 50% is the consensus of all textile people. Of course, the most direct impact of orders is the endless growth of inventories. In order to avoid all of the mobile capital being turned into raw materials, grey cloth and workers' wages, most of the weaving enterprises changed their starting rate earlier. Began to substantially reduce the start-up rate, 80%, 50% or even less than 20%.

Do not rest in normal holidays, in the Dragon Boat Festival holiday.

With the drop in the rate of start-up, there are many enterprises in the coming Dragon Boat Festival. But in fact, there are not many enterprises planning to go on holiday, except for a small number of enterprises who plan to take a vacation for about 3 days.

The absence of holidays on the Dragon Boat Festival does not mean that workers do not have holidays. The truth is that many workers in factories now have a rest. Three shifts, weekend break, 10 days, 20 days off. Different kinds of holidays are staged at various factories. Usually, there are no plans for the Dragon Boat Festival holiday. Most factories that do not take turns will usually have a holiday on Dragon Boat Festival. Whether it is usual holiday or holiday is an intuitive manifestation of the weakening textile market at the moment.

Of course, the purpose of factory holidays is simple, in order to reduce inventory growth and reduce workers' wages. Whether it is hourly wage or piecework wage, in the face of a sharp reduction in working hours, income reduction is inevitable. The decline of 10-20% is less, and more than 30% of the slump is also there.

What is surprising is that in the case of a sharp reduction in wages, there is little loss of workers. This situation is mainly due to the textile environment, and other factories and enterprises are also on vacation to reduce wages. Or many enterprises have not planned to recruit people this year, and ordinary workers lack the motivation and destination of mobility.

The current situation of weaving enterprises is not optimistic. How about dyeing factories?

The fee can be discussed and negotiated. The delivery period is within a week.

As the lower reaches of weaving enterprises, dyeing factories encounter unavoidable reduction in orders while weaving factories. For a long time, the dyeing factories in the relationship of "supply less than demand" have always been strongly priced in terms of dyeing fees, but this year they have to lower their heads in the face of the epidemic.

In the past several times, the cost of dyeing has gone up. Instead, the price of dye can be negotiated and negotiated, and there is room for price reduction.

"There is no discount on the price, but if the volume is large, you can negotiate the price in private, and you can get a discount."

"If the amount of dye is large, it will be cheaper two Sanmao."

"There must be a discount on the dye charges. The main thing is to look at the size of the order. It's normal to make a one or two wool size."

...

Many traders have responded to the fact that dye fees have been loosened. Not only is the fee concession, but the date of the dyeing plant is also pleasing. Whenever a single is done, it can basically control delivery in a week or so. Sooner or later, it can take about 5 days, or even 2-3 days.

Dyeing and dyeing at this time can be very tempting, and it is a blessing if orders can be made at this time. But in fact, not everyone has the courage to take orders at this time.

Refund extended 2-3 months, orders warmer no regular

More important than receiving orders is the timely recovery of payments, but this year's textile market makes it impossible to achieve this simple desire. The delay and extension of payment is almost the consensus of all textile people, especially foreign trade orders. A month's extension is not a delay. It is normal to extend for two months. More than three months are also common. Even some companies have not received customers' repayment since the end of the year.

There is no guarantee for customers' receipt time. This is mainly due to the slowdown in sales of downstream clothing and the sharp shrinkage of the clothing market in spring and summer this year. Terminal customers lack source of funds, naturally unable to pay the payment to suppliers.

Of course, suppliers can not guarantee the payment, and lack the confidence to actively take orders, and it is still uncertain when the customers' state will improve. Even if the textile market can improve in the second half of the year, orders and funds can flow normally, that will inevitably be a situation of "too many people." a large number of suppliers compete fiercely around a small number of orders, which will only lead to a brutal price war.

The textile market has become more and more cold in the traditional off-season this year. The factories that guaranteed the starting rate in the early stage seem to unify the preceding holidays in the near future, and the whole market is full of holiday and stop production. However, dyeing factories use the dye fee and delivery time to tell traders that orders can reduce production costs and shorten the production cycle. Just because of the customer's loan problem, many textile people are deterred. Only when the fabric and capital in the market can flow normally, can the whole textile market really return to the busy season.