Recently, the editor has discovered that many textile people around me no longer do textile work “with peace of mind”. They have begun to use the money on hand to buy stocks, buy gold, speculate in futures, and even become second-rate dealers…
Everyone knows the saying “Investment is risky”, but the reality is that if you sell cloth with peace of mind, at the end of the year you will find that the money is either floating outside or sitting in inventory. Especially when faced with the black swan of this year’s COVID-19 epidemic, most companies are producing inventory, only spending every day, but not making any money. However, investment is different. If you invest correctly, doubling your funds is not a dream. Many textile bosses couldn’t help but feel excited.
So, how bad is the recent market situation that makes Boss Bu start to “not do his job properly”?
It’s scary! In the past, busy dyeing factories had no work to do and began to shut down their machines
Starting from mid-to-early March, in order to stop the epidemic, various countries began a series of epidemic prevention measures, and a large number of clothing stores in Europe and the United States stopped operating. , which also led to a sharp drop in global clothing demand, and foreign trade orders were urgently suspended! It’s already early April, and the situation in the textile market has not improved, but has become weaker.
It is said that whether the textile market is good or not depends on how the printing and dyeing factories are doing. It is understood that a dyeing factory in Wujiang area has stopped some machines because there is no work to do. This dyeing factory mainly sells market goods, and during the off-season last year, there were often queues and queues. But at this time this year, machines are starting to shut down, which has never happened before.
Of course, the situation of this dyeing factory is not an exception. The operating rate of dye vats in Wujiang area has dropped to about 60%. At present, it only takes about 4 days from warehousing to shipment of gray cloth. Many dyeing factory salesmen began to proactively contact customers and ask them if they had any orders to make.
Raw materials began to loosen, but traders did not dare to stock up!
Last week, there were some signs of rising prices for raw materials. It stands to reason that traders should take advantage of the fact that the price of gray cloth has not yet increased to stock up on some. When the epidemic is over, cloth prices will most likely rise accordingly. , the low-priced gray fabrics stocked now will be sold when the time comes, and traders will be able to get a little price difference from it.
But this is not the case. A trader said: “Last year, 4 million meters of gray fabrics were stored, and together with the recently canceled orders, they are all sitting in the warehouse. Now global demand has decreased. , it can be expected that the number and frequency of orders placed by customers will also decrease in the future. When future demand is unclear, there is no need to stock up. “At the same time, a weaving factory owner also revealed: “Recently, I have been begging customers for their orders. Don’t take some, they are all old friends for more than ten years. If they need it, I will try to give them the lowest price, but they still don’t want it. This makes me very worried. The situation this year is worse than ever before.”
Many traders said that they would not consider stocking up at present. “What we are most worried about now is the cancellation of overseas orders and delayed delivery of payment, which affects our cash flow. Once the cash flow is cut off, there are only two ways. One is bankruptcy, and the other is borrowing money to maintain the company’s operations. Therefore, there is no money to stock up on gray fabrics now.”
Funds are going from real to virtual, cloth bosses need to be vigilant!
“Now because the orders are gone, I thought I would take a gamble if there was a market. But in fact, we started two years ago. Small and medium-sized enterprises like ours have finished sending out employees. After paying wages and paying taxes, there won’t be much left in our pockets. This money won’t earn much interest in the bank. We don’t want to buy more equipment to expand our scale, so we will use this money for investment.” A man with more than 70 years old The cloth boss at Taiwan Loom said helplessly.
In recent years, both the textile industry and other manufacturing industries have lamented that business is difficult to do, profits are getting thinner and thinner, and funds are inadvertently diverted from real to virtual, and the stock market, real estate, and futures markets have become A new paradise, however, the madness of the capital market is always short-lived, and quick money is not so easy to make. It is very likely that he will become a “leek” in the end. However, if funds are used for renovation, equipment updating or new product development, maybe after the epidemic is over, the predicament will gradually come out and spring will come. The quality and innovation of products can be recognized by more customers. Textile bosses need to consider carefully. Don’t be fooled by short-term benefits! </p
