Expected Uncertainty: Inventory Or Impact On Next Year'S Textile And Clothing Market

2020 is coming to an end, but the market is still facing various difficulties at the end of the year. 2021 is coming. What will happen to the market in the coming year?

Raw materials rise: no loss has become the biggest luxury

At the same time, the price of raw materials began to rise on a large scale. First, nylon, spandex, and finally polyester filament, and the price of grey cloth also increased in varying degrees driven by raw materials.

Manager Yang, a trader, complained that there was no profit in taking orders. The price of raw materials rose again, which made the cost more expensive. Several orders still lost money. Now, it is the biggest extravagance to be able to handle several orders to break even.

Freight transport is difficult: container must be "lottery" for luck

If the goods are made and want to be transported out, it is a troublesome thing.

With the outbreak of foreign epidemic, local production has been greatly affected, and the demand for Chinese made products has been increasing. In addition, Shanghai is short of foreign personnel and can not unload goods, resulting in a large number of containers pressed in European and American ports. Container "no return", also let many cloth owners watch a large number of orders and production of good products, but can not be shipped out. This situation has lasted for half a year, so the time for exporters to book in advance has been continuously extended, from one week to one month in advance, and sometimes even need to draw numbers for luck.

Near the end of the year, the situation of "one box is hard to get" has not improved, even intensified.

The price is difficult: if the price is pushed down, the money will be deducted

Mr. Wang, the head of a silk imitation fabric manufacturing enterprise, said that the export market of imitation silk was not good this year, resulting in a large number of stocks in the market and serious oversupply. As a result, traders tend to keep prices very low, with little profit. Not only that, while lowering prices, there will also be various kinds of nitpicking. In the past years, some small mistakes that can not be avoided in the production process that can be accepted in the past will become the reason for deducting money, which further reduces the original small profits.

Mr. Wang's experience is not an example, but a common phenomenon when the market is not good every year. In this year's epidemic environment, imitation silk with poor sales is even more "eaten to death".

Difficulties in foreign trade: Christmas and new year's day will be silent

China's textile and clothing industry is highly dependent on exports. In the early years of the year, the export volume of textile and clothing products did not decrease but increased under the epidemic situation. The main reason is that the demand for epidemic prevention products in overseas countries is strong, which drives the export of our anti epidemic fabrics, anti epidemic clothing and masks. However, the number of domestic enterprises involved in epidemic prevention is still limited. Most of them are ordinary garment fabric factories, and few enterprises can make profits in this wave.

Since December, the out of control state of the epidemic situation in Europe and the United States has once again cast a shadow on the export of textile and clothing fabrics. Generally, there are 600000-700000 new cases every day in the world, sometimes nearly 800000 cases, and the number of new confirmed cases in the United States is generally more than 200000. Britain's epidemic situation is even more exaggerated. British health minister Hancock said that the new coronavirus strain found in the country has been out of control. The spread of the new virus after mutation is 70% higher than that of the original strain. London, UK, has begun to stage a large escape.

Expected uncertainty: inventory or impact on next year's textile and clothing market

In 2020, the Christmas season in Europe and the United States will inevitably lead to unsalable clothing market due to the outbreak of the epidemic again and people's travel restrictions. This part of the inventory clothing will undoubtedly appear in the autumn and winter market next year, which will certainly lead to a reduction in fabric orders next autumn and winter to a certain extent.

On the other hand, the current textile and clothing market is generally optimistic about the market in the second half of next year, which is mainly based on the gradual investment of vaccines. But will the emergence of a new strain in the UK lead to the failure of the current vaccine? Of course, there is no clear evidence that the new strain may affect the vaccine and treatment, but the possibility is still there.

In the first half of next year, due to the overstock of clothing inventory this spring and summer, it is basically not optimistic, and the order rate will not improve. Once the market loses its optimism for the second half of next year, the lack of orders will continue throughout 2021. This year, the vast majority of textile enterprises have been struggling to support. If the market does not improve next year, many textile enterprises may go bankrupt and leave the market.

Before the global epidemic situation is under control, there are still a lot of uncertainties in the textile market. In particular, the recent deterioration of the European and American epidemic situation, out of control, make the textile market in 2021 confusing.