With the start of the “Double Eleven” pre-sale, the downstream weaving market has once again weakened, returning to the pre-Liberation situation overnight. Some factories have once again suspended production during the holidays, and some people have long predicted that the holidays will be brought forward much earlier this year.
A weaving factory has 200 machines and an inventory of more than 4 million meters, with a supply of more than 3 months. In October, stimulated by the “Double Eleven” effect, a lot of goods have been sold, but the delivery speed at the end of the month After slowing down, inventories began to rise again, but the problem of high inventories was still not solved.
Weaving stocks rise again
Recently, as the “Double Eleven” orders have been basically placed, the inventories of some manufacturers have begun to rise slowly. According to statistics from China Silk City Network, the current inventory of gray fabric weaving in Shengze is 36.1 days, which has begun to rise compared with the previous period.
The above-mentioned person in charge revealed: “Workers want to run more machines. After all, it is understandable that output is linked to their wages. However, our inventory is too high. Our daily output is 30,000 meters. When the machines are turned on, The faster the inventory increases, the more likely the inventory will explode again. In order to control the inventory, we can only run half of the machines now. Many workers have complained about this, but if we run more machines, it is very possible to reach 12 It’s going to be a holiday in the month.”
The payment cycle is doubled and extended
The biggest headache for Boss Bu this year is not the lack of orders, but the return of payment! In recent surveys and some news events, it is not difficult to find that the account periods of both traders and weaving mills have been extended this year. In previous years, the payment cycle was generally 1-3 months. However, this year the payment cycle of many companies is three months or even half a year, especially the payment cycle of overseas customers has also been extended. In the past, it was said that the payment of foreign trade orders was fast and stable, but this year the payment of foreign trade orders has also been extended. .
Last year, many companies said that overseas customers received payment in a more timely and stable manner than domestic customers, but now some overseas customers are in arrears. Even foreign trade orders that have always received stable payments have experienced irregular payments and extended payment times. A person in charge of a foreign trade company said: “Our overall order quantity this year is slightly higher than last year, but the payment collection this year is the most stable, and it is basically extended by 1-3 months compared with last year. That is, the account period of an order is at least It will take 3 months.”
A person in charge of a weaving factory said: “The orders being made now basically have a three-month billing period, which means they will be paid almost at the end of the year. But at the end of the year, the company needs a lot of money to pay employees’ wages, purchase raw materials in advance, etc. This year The market is poor, and the profit is not much. I’m afraid it’s hard to get the payment at the end of the year.”
Accounts receivable is a long-standing problem. The end of the year is the time when payment for goods is intensively collected, and debt collection dramas are staged every year. However, compared with previous years, the repayment cycle of receivables this year is longer and it is more difficult to collect. Therefore, many companies said that they will mainly focus on collection this year, and are already working on collecting receivables.
What’s even more frightening is that the pre-sale results of “Double Eleven” clothing are acceptable, but the return rate in the later period is also worrying. Once the return rate is high, the inventory of clothing companies will increase, and later payment to fabric suppliers will also be greatly affected. The drama of clothing companies using clothes to pay off debts and fabric merchants selling clothes will be staged again.
Some traders said that they owed money to upstream suppliers, and downstream garment companies also owed money to them. If the downstream money could not be collected, they did not have the money to pay back to the upstream suppliers. In this way, the entire industry would be in trouble. A “sales and credit chain” was formed. Moreover, there are quite a lot of “laosha” in the market this year, but there is nothing we can do against them. Therefore, most cloth bosses said that even if they make less money, they still have to sell goods in cash, and they cannot give any chance to “old rascals”.
However, there are not many manufacturers that can actually deliver goods on time this year. Seeing that the pile of gray fabrics is about to be overrun, they will still succumb to the arrears to get the goods. But this seems to have become an “infinite loop”. What enterprises can do at present is to select high-quality customers, and even if they cannot get the goods in cash, they must have a stable payment cycle. In addition, I hope that all textile workers who have outstanding debts can consciously settle their payments as soon as possible!
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