Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News [Frontline Survey] Some bosses are holding on for dear life, while some companies are trying to throw it away! Behind the brutal price war, the textile market is experiencing “low level”!

[Frontline Survey] Some bosses are holding on for dear life, while some companies are trying to throw it away! Behind the brutal price war, the textile market is experiencing “low level”!



The “ultra-long standby” rainy season is over. On the other hand, the “rainy season” in the textile industry does not seem to be over. Entering July, most areas in the south have experie…

The “ultra-long standby” rainy season is over. On the other hand, the “rainy season” in the textile industry does not seem to be over. Entering July, most areas in the south have experienced a relatively long “Meiyu period”, which has had a certain impact on the production of textile enterprises. In some areas, large areas of water entered the workshops of textile companies, causing production to stagnate. At the same time, some gray fabrics became moldy due to moisture, which also affected product quality.
But for textile people in 2020, these problems are not problems.
After all, these are just minor tribulations compared with the “climate” that will have the greatest impact on the textile industry in 2020 – the epidemic frost period.

Rental machines and individual companies have started holiday mode!

“It is obvious that after June, customer inquiries are not as frequent as before.” Mr. Wang, business manager of a textile enterprise in Jiangsu and Zhejiang regions, said, “Raw materials have been falling now. , If the downstream can not get the goods, they will not get the goods. They would rather wait.”

At present, the factory’s inventory has been almost one and a half months, and the sporadic orders on hand cannot support it. The daily production capacity and factory inventory are still rising, which shows that they may spend August operations in uncertainty.

Since this year, affected by the global epidemic, terminal demand has been difficult to recover well. Entering the third quarter, as the temperature gradually rises, market demand also shows varying degrees of shrinkage. According to interviews and surveys, the current performance of domestic trade in the Shengze area is still better than that of foreign trade, and most of the currently traded varieties are autumn and winter fabrics.

Peng, the person in charge of a textile factory with more than 200 looms, mainly engaged in imitation silk, polyester taffeta, and double-sided cloth, said that there have been orders for double-sided cloth on the market recently. Increased, mostly exported to European and American markets.

Manager Shen of another company that sells satin home textile series said that domestic orders have been mostly domestic recently, but the product transactions are relatively messy and the prices are relatively low. In addition, Manager Li of the trading company said that the recent domestic trade orders have been better than the foreign trade market. The current products are mainly autumn and winter products, such as Taslan and high-elastic series.

During the visit, except for a few factories set up in Anhui and other places, during the rainy season Before the shutdown, the operations of most companies were not significantly affected. At present, many manufacturers are still maintaining early operations, while a few companies have seen a significant decline in operations due to the impact of new orders, high inventories, etc.

“The factory recently had a week off because there was too little work.” Mr. Wang said. Due to the serious homogeneity of products in the market and the large number of original machines, the imbalance between supply and demand is obvious, and the factory has hundreds of thousands of meters of fabric for each variety. “We have rented half of our looms to others to ease the financial pressure,” said Mr. Peng.

In addition, Mr. Qian, who owns 100 looms and specializes in chiffon, georgette and other imitation silk products, also said that the current start-up of the factory is not much different from last month. There are many days off in the factory. “Because there are no orders, production will be reduced soon. In previous years, production will also be reduced at this time, but this year the intensity will be greater.” He said with emotion.

Reducing production, taking turns, taking vacations, and renting out products. It can be seen that in order to reduce the impact of the epidemic on their own operations, textile bosses have reduced production capacity to relieve operating pressure. Of course, there are many interviewed Companies say they will maintain a wait-and-see attitude in the short term.

“At present, the machines in the factory are still fully operational and have never stopped.” Mr. Dai, who mainly sells gabardine, said, “Currently, the factory’s inventory is almost 15 million meters, but we We mainly do spot goods, so we have a relatively large inventory of gray fabrics. For us, this is normal.”

Price war = self-help?! Some people carry it, and some people throw it away goods!

Under the new crown epidemic, the apparel industry is also experiencing the most serious “great retreat” since the reform and opening up. Some experts predict that the overall apparel industry will lose at least 400 billion yuan in revenue this year, and the overall market size will shrink by 15%.

In the past six months, fast fashion brands such as Uniqlo, Zara, H&M, GAP, and La Chapelle have announced the closure of some stores. From capital enthusiasm to store closures, most clothing brands All are at risk.

As the upstream fabric market in the clothing industry, it is also under the greatest inventory pressure in recent years. In this environment, some textile mills have begun to sell goods at low prices. In an era of poor market conditions and tight funds, it is a good way to “liquidate” the gray fabrics in the warehouse at a low price.

Just as Mr. Shen of a textile factory said: “The market prices are too chaotic recently, and customers They asked us to reduce it by another 2 cents, but we really couldn’t do it, but we were afraid of losing customers, so we could only grit our teeth and accept it.”

However, during the visit, there were still many questions A few companies do not agree with “price war”.

Mr. Shen, the owner of a textile factory that specializes in polyester taffeta, Oxford cloth, and pongee, said: “Although we have more than 400 looms, the current inventory in the factory is a lot of, it has been almost 2 months, but we will not sell at a loss, at most we will sell at cost price. Price war is not a good thing for the market. ”

Another Mr. Shen who makes home textile fabrics also said that he will put the inventory first and make it when there are orders. If the market is not good, he will take a holiday. The money for making imitation silk is always high Said: “Currently there are almost 5 million meters of inventory in the warehouse. Chiffon is too common in the market. The products are not suitable. Even if we sell them at a low price, no one will necessarily want them. Therefore, we will not deliberately lower the price to sell goods, but will set the price accordingly.” bad. ”

It is true that if the clothing consumer side is not good, it will inevitably cause negative feedback to the upstream products. This has also led to the supply and demand in the fabric market this year being horizontal, prices have fallen sharply, and the prices of individual products have even hit a record low.

For the “Golden Nine and Silver Ten” that once had high hopes, the Most textile bosses are also cautiously optimistic. Although domestic demand and foreign trade markets are still slowly recovering, there are still many uncertainties in the market, making it unclear whether the textile peak season can arrive as scheduled. In addition, the remaining factors left over from last year The large amount of clothing inventory that has come down has not been fully digested, which will inevitably affect the speed of the new round of replenishment.

“I think there is still demand abroad, but we have to wait until the economy gradually recovers. Orders will come in only after the second half of the year. I feel that the market will not have much ups and downs in the second half of the year. Let’s treat it as a test for the company! ”

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Author: clsrich

 
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