Textile Man: Consciously Control The Production Cost And Try To Survive The Off-Season!

In 2020, the most difficult task is textile traders. Orders from Europe and the United States are sharply reduced, and some enterprises turn to the Indian market. I didn't expect that India would be hard to do!

March this year was the peak time for foreign trade enterprises to cancel orders, cut orders and break the capital chain. Although the situation has improved, the cruelty of the market continues, and the pressure is also continuing, and most textile enterprises are struggling.

July: textile enterprises face order crisis again

At the beginning of May, the epidemic situation in Europe and the United States began to return to work. Some enterprises have received the notice of proofing and sending samples from European and American customers, and some of them have received the actual orders. However, in July, they have entered the traditional textile off-season. In addition, the epidemic situation in European and American countries is still quite severe, and there is a risk of a second outbreak. European and American orders are once again in crisis.

"At the beginning of May, we received an order of 200000 meters, which came from American customers. But now European and American customers are silent. There are still proofs, but there are no actual orders. At present, we still have some loose bills coming from Southeast Asia. " A person in charge of the export enterprise of Tencel and renmian revealed.

In the same way, a trader who does Sifang, Chunya textile and ditaf has no choice but to say: "now it's not only foreign customers, but also domestic garment factories and brand merchants are very cautious about placing orders. It's the off-season market. Now we don't have any orders in hand and are trying to develop new customers."

In the face of such a cold market, textile boss began to take the initiative to sell profits. "In the current market, we are asking customers to raise a little fabric, and the price can be discussed. "Said a cloth owner who specializes in imitation silk.

Export orders are poor, but the domestic market is not optimistic. In recent years, the domestic demand for clothing has been shrinking. In particular, this year, the epidemic has disrupted the production rhythm of garment enterprises, resulting in sales slump, and the situation is very difficult. This can be seen in a series of news events.

Xiataicang's first wholly-owned subsidiary of xiataicang Clothing Co., Ltd., which was listed on the stock exchange for about RMB 6.5 billion, was proposed to sell the company's first wholly-owned subsidiary of xiayuecang, which was named as "the first company in China, which was listed on the stock exchange for about RMB 19 million.

Recently, a clothing factory in Haizhu District of Guangzhou ran away. The boss left a letter. The clothing factory was moved out overnight. The wages of 15 workers were not paid, and the boss of the clothing factory borrowed 150000 yuan from the employees of the factory!

The lack of terminal orders and the outbreak of overcapacity

However, the demand for conventional products in the downstream market has been declining for two years. In July, the production and sales of textile enterprises are difficult to level, and the inventory shows signs of rising. According to the monitoring data of China silk capital network, the inventory of Jiangsu and Zhejiang grey fabrics is about 45 days, reaching the highest level in nearly three years!

With the traditional off-season and the coming high-temperature season, boss Bu is more and more willing to reduce production and have a holiday. At present, the enterprises who drink porridge are more than those who eat meat, and most of them only maintain small and scattered orders. "The demand is not good, plus the raw materials have been falling, so far this year, our grey cloth price has generally dropped by 3 cents, and the selling price is even lower and frightening. How to calculate it is a loss." The head of a weaving mill with more than 100 looms said. If we continue to produce blindly, the inventory will be higher and higher, and the working capital will be occupied more and more. In this case, lowering the operating hours and taking a holiday have become the first choice of many bosses.

"At present, most of the manufacturers will take a week off. If we are in the back of the factory, we will take a week off. The inventory is too high, the price of raw materials is not stable, it will depreciate if it is not done well. If the market continues to weaken, I feel that many manufacturers will have a holiday. " The manager of a factory with more than 70 looms revealed.

Editor's note:

As a result of the great leap forward in production capacity in the previous two years, resulting in overcapacity of grey cloth, and repeated Sino US trade wars, China's textile industry has long been riddled with holes, and textile workers have been walking on thin ice in the past two years, and they have been living extremely hard. It has been four months since the outbreak of the new crown epidemic. The demand for textile and clothing has been hit hard again. Both domestic and foreign trade have entered the downward channel again. The textile industry chain is also prosperous and has lost everything. From raw material enterprises to clothing enterprises, they have been affected to varying degrees. In August, the textile industry will continue to bear the slack season. Textile workers need to consciously control production costs and try to survive this off-season.