This is a video that the editor came across on Douyin. The video describes the current status of the garment and textile industry in Guangzhou. From workers to textile bosses to garment bosses, all levels of the industry talk about the current unsatisfactory situation, which can’t help but sound a bit sad.
Guangzhou is the largest clothing wholesale distribution center in the country. It can be said that its current status is a microcosm of the national clothing industry. Nowadays, Guangzhou’s garment industry is inevitably experiencing a “cold winter” due to the epidemic, let alone other places.
The apparel market has actually entered a “bottleneck period” in recent years, with many well-known companies going bankrupt. The epidemic has only intensified the reshuffle of the apparel industry. The downturn in the apparel market has naturally led to a sharp shrinkage in fabric market demand, which has also had an impact on the gray fabric market.
Textile workers lamented: Frequent holiday operations are like living the life of civil servants
The textile market with no work to do has caused a significant increase in the inventory of gray fabrics in the weaving market According to the sample companies monitored by China Silk City Network, the current gray fabric inventory of weaving manufacturers in Shengze area is about 42-43 days. Although some specifications of pongee and polyester taffeta products have been relatively popular recently, and there has been a wave of goods in the market, the inventory has dropped by about 1-2 days compared with the previous period. But overall, the current inventory of gray fabrics is still at a high level.
High inventory has forced weaving manufacturers to start frequent holiday operations. During the May Day holiday, many weaving manufacturers chose to take at least 3 days of holiday, and some even took about a week. A textile worker who has worked for seven or eight years laughed at himself: “This year it seems that I am living the life of a civil servant. The shift has changed to three shifts. After Qingming Festival, there will be May Day, followed by the Dragon Boat Festival, and maybe summer vacation.” At the beginning of April, some weaving companies said that if the market did not improve by the end of the month, they would further reduce the burden or directly stop production. It is foreseeable that in the “Red May”, the market’s operating rate may further decline.
Even non-woven fabrics are not easy to sell? The price war for conventional products may become more intense
Some time ago, affected by the epidemic, masks became popular in the market, making non-woven fabrics popular, and the circle of friends was attracted by various non-woven fabrics. The news has flooded the screen, and the price of non-woven fabrics has skyrocketed. Before the epidemic, the price of melt-blown non-woven fabrics was around 20,000 yuan per ton. In February 2020, the price soared to 80,000 yuan per ton. In March, the price of melt-blown non-woven fabrics exceeded 500,000 yuan per ton. In April, affected by the outbreak of the international epidemic, meltblown non-woven fabrics ushered in a second round of surge. The price even reached 700,000/ton, an increase of 35 times, and there was no spot. However, recently, as relevant departments have rectified the chaos of non-woven fabrics and tightened the export standards of masks, the popularity of non-woven fabrics has begun to subside.
In sharp contrast to non-woven fabrics, there are conventional products on the market. When the market is bad, conventional varieties have no advantage at all. The production threshold is low, the volume is large, and basic manufacturers can do it. The weaving market is currently in a state of severe production and sales difficulties, so the price of gray fabrics has dropped to varying degrees, and some products are basically no longer profitable. As the foreign trade market continues to stagnate and domestic trade demand is difficult to recover, a prolonged price war for conventional products is an inevitable event.
The textile and clothing industry chain is a bottom-up demand transmission model. The market conditions of the terminal clothing market directly determine the direction of the upstream gray fabric market. Therefore, As long as demand rises, any upstream link can improve to a certain extent.
Domestic demand affects the recovery of the textile industry, and foreign demand also affects the textile industry. In particular, the economic development of the United States, one of the world’s largest economies, has an important impact on the world economy. However, affected by the epidemic, the U.S. economy has entered a “shutdown period.”
On April 29, local time, the U.S. Department of Commerce announced the gross domestic product (GDP) for the first quarter of 2020. Data show that the real GDP of the United States fell by 4.8% in the first quarter, far lower than the previous 2.1%, and exceeded the 4% that economists had expected. This is the lowest level of GDP growth since the fourth quarter of 2008, marking the lowest level of GDP growth since the fourth quarter of 2008. The longest economic expansion in U.S. history has officially come to an end.
Not only are the first-quarter data not encouraging, as state lockdowns were not implemented until mid-March, economists also believe that the economy is actually The U.S. economy has only entered recession since the second half of March. The worst moment for the U.S. economy has yet to come, and GDP will shrink further in the second quarter.
As the epidemic continues to ferment, it will become difficult to resume work in foreign markets. Under the economic shutdown, it will naturally be difficult to increase demand. Whether it is for other industriesIn the textile and garment industry, whether the COVID-19 epidemic can be effectively controlled will be a huge turning point. </p
