A Textile Printing And Dyeing Factory Was Forced To Stop Production! Orders Plummeted, Had To Leave Early!

It was learned that: Recently, the circle of friends issued a "Spring Festival holiday notice" about a textile enterprise. The notice clearly pointed out that due to the impact of market environment, the company's customer orders dropped sharply and could not maintain normal production. At the same time, due to the approaching Spring Festival, the notifying unit negotiated with customers and decided to take a holiday in advance.

Coincidentally, a textile factory issued an urgent notice: due to the loss of operation, December 5 to stop production!

This year's textile market is difficult! Difficult! Difficult!

Whether in other regions or around Jiangsu and Zhejiang, the textile market is difficult to describe. Since last year, the crazy capacity expansion, capacity transfer and blind production have led to large overcapacity this year, which makes it difficult for weaving manufacturers to level production and sales, and the textile market has gone downhill.

Coupled with the ups and downs of the foreign trade environment, it is difficult to have a direct positive, textile market prices lack of action, enterprises are more or less capital pressure. In addition to the blind expansion of enterprises themselves, the difficulty in receiving orders also makes enterprises under great pressure.

Conventional varieties do not sell well, market persistence is not strong

Textile market is not good, clothing business order way has also been changed, mostly in small batch, multi batch, leading to textile enterprises few large single, small single living. Especially in the off-season of July and August, the phenomenon of selling goods is common in the market, but cruelly, if you throw it away, you don't have to ask for it.

Conventional varieties have entered a dead end this year. Take Nisi spinning as an example, as a necessity of autumn and winter fabrics, 34 million meters was normal in previous years. However, this year, some enterprises said that the order of NiSi textile was close to "cutting at the waist", and so far only less than 2 million meters have been made. In the survey, some enterprises even said that the sales volume of NiSi spinning this year was 0.

After entering October, the market began to warm up, mainly in autumn and winter fabrics, which led to a wave of textile manufacturers to buy goods. However, this wave of market persistence was not long, less than a month, the market has entered the off-season. On the market, the decline in negative, production is still continuing. Difficult to receive orders, leading to the most direct phenomenon is the high stock of grey cloth!

Is the weaving Market cool?

According to other media sources in the industry, the boss of a weaving factory in Nantong area plans to have a holiday in December. The specific day has not yet been determined, and it will be determined according to the market situation. However, no matter which day, I can't help but sigh that the holiday is so early! Although there is no news of holiday in the market at present, there are many manufacturers who plan to have a holiday in December. Before that, some media in the industry conducted a small questionnaire survey. The results showed that more enterprises had holidays in the first ten days of January, but not a few in December. In addition, compared with last year, most manufacturers had a holiday about 15 days before the Spring Festival, while this year some enterprises have already advanced their holiday plans to about 30 days.

Most people think that the textile industry is in a bad situation this year, the number of orders has dropped by half, the highest inventory of weaving manufacturers has reached 43-44 days, the market is full of information about goods sold, and the profits of manufacturers are generally less than 10% But now, there is news of Spring Festival holiday earlier than in previous years, which means that the textile market is really so depressed?

In fact, boss Bu doesn't have to worry. Taking a holiday in advance may not be a good thing, or it is a strategy for some enterprises to deal with this market.

Is early vacation a relief?

It is definitely a bad thing to have a holiday ahead of time in the past years. After all, the textile market was the production season for orders in spring and summer after the year, especially for many garments, which will be on the market after last year. However, due to the long period of production stoppage during the Spring Festival, every day before the year was extremely valuable. If a substantial advance holiday, it is urgent to wait for shipment of textile will be a disaster. But this year's market holiday ahead of schedule, for many textile people may be relief.

First of all, the market was still silent a year ago, which should have been the hot spring and summer orders production time point, but in fact, the number of relevant orders received by various textile enterprises is far less than that in previous years, most of them are doing some orders for next autumn and winter. It can be said that the recent spring and summer clothing orders in the textile market are absent. Because the clothing sales end, under the influence of the epidemic situation at the beginning of the year, a large number of spring and summer clothes are still in stock. Next year's spring and summer market is basically to digest the inventory, so there is no need to re place this order and increase the inventory.

Second is to reduce production costs, for the vast majority of textile enterprises, even if there is no order, it will not be easy to stop production and vacation, especially for various textile factories. Because once a long holiday will easily lead to the loss of workers, re production will be more difficult. If there is no order but can not be shut down, the labor, water and electricity, environmental protection and other expenses will greatly increase the operation cost of the enterprise. But early holiday will give textile enterprises a reasonable reason to stop work, which can not only reduce expenses, reduce inventory, but also avoid the loss of workers.

In fact, there are not a few textile enterprises receiving orders, especially foreign trade orders, in the market, but receiving orders now is not necessarily a good thing for them. First of all, the exchange rate issue. Most of the orders we are making are quoted according to the exchange rate of 7 or so in the early stage, but now the RMB has risen to 6.5. Secondly, due to the shortage of containers, the freight price rose to 4500 yuan. According to the current market situation, most of the enterprises' profits have been greatly reduced, even at a loss. Through the force majeure of industry compulsory holiday ahead of time, but the appropriate delay of delivery, leaving room for exchange rate decline, but also a certain time for container return to China. Many problems may be solved if production is arranged after the new year.

The wages of workers are large and the bankrupt boss is unable to repay them

For factory workers, the happiest thing of the year is to get the year-end bonus and go home happily for the new year. In the past two years, due to the recession of the textile market, especially this year's epidemic situation, textile enterprises in many places have stopped production and closed down. Not only some small-scale enterprises, but also some well-known enterprises have fallen into the predicament of bankruptcy.

And the biggest reason for the collapse of enterprises is that the capital chain is broken, which leads to many closed textile enterprises do not have enough funds to pay workers' wages.

High inventory and long payment period lead to difficulty in capital turnover

It is not only the bosses who are on the verge of bankruptcy who have a tight capital chain. This year, it can be said that 70% or 80% of the bosses have more or less experienced the situation of capital shortage, especially the enterprises with large foreign trade business.

"In the first half of this year, we basically stopped all foreign trade orders. At that time, capital was very difficult. The wages of workers in the factory were paid once every three months, and hundreds of other looms were also stopped.

Many cloth owners have said that after so many years of work, this year is the most difficult year. In addition to the reduction of profits, high inventory and long payment period are also the most important reasons for the financial turnover difficulties of textile enterprises. It is reported that a boss in Jiangsu and Zhejiang Province who produces imitated memories said that this year, the inventory of some conventional polyester taff products in their factory exceeded 500000 meters, that is, millions of funds were occupied and the inventory remained unchanged. That is, without working capital, there was no way to buy raw materials, pay wages, etc.

How to relieve the pressure of funds?

Therefore, how to relieve the pressure of funds in the next step is to de stock, reduce the construction cost and sell goods at a low price, and timely recover the payment for goods. Receivables can not be collected, the pressure is still on the enterprise.

At present, the market is still relatively low and the transaction risk is high. The decision makers of production should face this situation calmly and ensure the stability of existing customers; strengthen self immunity, guard against arrogance and rashness, maintain product quality internally, maintain market communication with the outside, and strengthen production and marketing concepts; be honest and trustworthy, and do not agree easily, and you will certainly do so if you agree; Keep a broad mind, actively communicate with each other and learn from each other. Only in this way can we transform human capital and human capital into productive forces.

In the final analysis, it is the lack of terminal demand

This year, not only the textile market "cold", even the clothing industry has encountered a "bottleneck period.". According to the data of the National Bureau of statistics, since 2020, the sales of clothing and cloth have decreased to varying degrees.

According to the data of the National Bureau of statistics, the retail sales of clothing products increased year by year from 2011 to 2017, but the growth rate slowed down year by year. In 2017, the national retail sales of clothing goods reached 1036.54 billion yuan, an increase of 1.4% year-on-year; in 2018, the national retail sales of clothing goods reached 987.04 billion yuan, a year-on-year decrease of 4.8%, and the retail sales of clothing goods showed negative growth for the first time. As of the first half of 2019, the retail sales of clothing products reached 474.97 billion yuan.

In the first three quarters of 2020, compared with the initial stage of the epidemic, China's clothing market demand has been significantly improved, and the production situation is stable. However, the production economic indicators of the clothing industry are still in a large decline. The clothing output of garment enterprises above the designated size is 15.705 billion, down 10.53% year-on-year.

This year, the epidemic led to the global economic downturn and weak consumption intention, leading to a "wave of closure" of clothing enterprises this year. Even large enterprises were not in the minority. JeansWest closed down, HM and Zara closed some stores in China.

Adjust your mind and earn more next year

In a word, the textile industry has not been affected by the high price of the textile industry, which leads to the low price of the textile industry. Many textile manufacturers with missing orders have begun to close down their payments for new year's Eve ahead of schedule; most enterprises will feel the pressure of "hard to earn money"!

The last wave of orders market has begun a year ago. At this time, those who have orders should work hard to prevent production queuing at the end of the year, resulting in delivery delay. If there is no order, many enterprises will choose to take a holiday in advance for the new year to adjust their status and fight again in the coming year!