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No Orders Accumulated Inventory, Received Orders But Lost Money! Is This The End Of The Year Or Not To Do Business?

2020/11/30 10:42:00 0

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Once there was a saying in the stock market that as long as you don't buy stocks, the yield can exceed 80%. This year's textile market seems to have encountered a similar dilemma.

Wang is always the person in charge of a weaving enterprise. According to him, after entering November, there are not many orders on the market. Although the market in October is good, such a "good day" only lasts for a month. Half of the inventory in the warehouse has been removed, but the orders received are almost finished one by one, but there are no new orders.

With the increasingly serious epidemic situation in Europe and the United States, Europe began to close its cities for the second time. The stock market in spring and summer next year was directly disrupted. Wal Mart, Costco and other large-scale supermarkets, which dominated the European and American markets, cancelled a large number of clothing orders, and the market price in November was directly cut off. Looking at the stock in the warehouse and accumulating again, textile people are extremely melancholy. ?

But can the enterprise receiving the order be happy?

Li is always the manager of the foreign trade department of a textile enterprise. According to him, although he has recently received some foreign trade orders and rushed to make the list, he even lost money in the final cost calculation.

This is mainly due to four reasons

First of all, we have a lot of stock on hand, and all of them are short of orders, which belong to the seller's market. Foreign trade merchants will lower the price after they understand this situation;

Second, because the customers who placed large orders in the past years did not dare to prepare goods because of the epidemic situation. Finally, those who bought clothing fabrics were small orders that were fast and urgent. People who have done textile should know that the smaller the list, the more urgent they need, which often means the higher cost;

Third, due to the signing of RCEP and the stability of China's domestic economy, the RMB exchange rate has greatly appreciated, but this is not a good thing for textile foreign trade enterprises in the short term. After the exchange rate returns to the era of 6.5, textile enterprises have greater pressure;

Finally, as the economy of Europe and the United States has not yet recovered, and China's economy is performing well, which leads to exports far greater than imports, and only one container can be returned after 3.5 containers are transported out. Finally, domestic containers are more and more scarce, but foreign port containers can not be piled up, and the shipping cost is greatly increased. For example, Southeast Asia routes, from about 10 yuan / kg in early September, have now risen to 18 yuan - 20 yuan / kg. ?

Compared with the normal orders received by foreign enterprises, the enterprises can not even accept the normal orders, which will cause the enterprises to worry about.

Due to the incomplete development of industrial chain and ineffective control of Xinguan epidemic situation, Southeast Asia and other emerging textile clusters have been greatly restricted in completing orders in 2020, and have been hit by "devastating".

Vietnam's textile and garment exports are expected to reach US $24.76 billion in the first 10 months, down 9.3% year-on-year, according to Vietnam's "industry and trade electronic news" on November 2. It is estimated that the annual export will be 33-35 billion US dollars, down 10% year on year.

Petra news agency reported recently that Jordan's garment and leather exports in the first nine months of this year amounted to 899 million (about 1.27 billion US dollars), down 15% year on year. Industry exports are expected to worsen in the fourth quarter of this year, possibly by 25%.

According to the statistics of Myanmar's Ministry of Commerce, the export of ready-made clothing industry in the fiscal year of 2019 / 20 reached 4.28 billion US dollars, a decline of 6.95% compared with the same period of last year of 4.6 billion US dollars

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Textile enterprises in China and even in the world have been in the situation of overcapacity many years ago, especially for some conventional varieties with relatively simple process.

Of course, this is a problem that most traditional industries will face when they develop to a certain extent. When the profits are high, everyone invests in a swarm, and eventually the supply exceeds the demand. However, it is difficult to reduce the expanded production capacity, which belongs to an objective necessity and does not depend on human will.

But under normal circumstances, the worst market is in 2019. In this case, the market will adjust itself and form a business cycle of 3-4 years.

However, this year's epidemic has brought a "dimension reduction blow" to this normal cyclical change. It is said that the good market will be relaxed for two years like a spring, and then it will be tightened for another two years. Suddenly, the epidemic is like a baby bear coming from outside, dragging the spring down. When can it bounce back, it depends on when the impact caused by the bear child can be eliminated.

However, with the recent new crown vaccine has spread good news, the dawn of victory over the new crown is about to appear.

At a forum held on November 28, Zhang Wenhong, director of infection department of Huashan Hospital Affiliated to Fudan University, said that at the end of this year and the beginning of next year, people all over the world will usher in a climax of vaccine marketing from all over the world, and the epidemic situation will be slowly controlled.

I believe that at that time, the market will be able to warm up, textile people look forward to the "retaliatory rebound" may come.