October 31, near the end of the month, a large number of polyester filament factories in Jiangsu and Zhejiang started promotions, and polyester factories offered new products on the basis of reduced quotations. Discounts, quotes dropped by as little as one or two hundred compared to last week, and as much as five or six hundred.
Textile companies are also buying into it, with average production and sales exceeding 170%. Some polyester companies with large promotions have sales as high as 600%, a wave of goods was released.
The “Double Eleven” shopping festival is coming soon, and the polyester factory can’t stand the loneliness and starts a big promotion, right? This is of course a joke. Who wouldn’t want to sell the product more expensively and make more money, but it’s a bit difficult in this year’s market situation.
The textile enterprise of “Die Maomao”
The global economic environment this year is not very good. The Russia-Ukraine war has started, the United States is raising fire everywhere, the Federal Reserve is raising interest rates, and many countries have fallen into a debt crisis. Everyone kept their wallets closed, and the consumption of textiles suddenly dropped a lot, resulting in a situation of oversupply.
Under such circumstances, textile companies can either choose to roll inward and engage in price wars with their peers on some conventional types of fabrics, or they can choose to “lay flat” to reduce the startup rate and increase holiday time. Traders and clothing brands are also sad, so they choose to squeeze textile companies. When going to quote, they will open the calculator on their mobile phones and then press the calculated cost quotation. Don’t take it, there are so many machines that need to be running, so many workers have to work, if you don’t take it, others will take it; take it, there is no profit, and you may lose money if the raw materials fluctuate a little accidentally, and it is very likely that it will become a waste in the end. work.
But with the current market conditions, it’s good to have an order, so why don’t you need a bicycle? Therefore, today’s textile companies are extremely sensitive to the price of raw materials. They are even more careful about their budgets than they were during the “Double Eleven” two years ago, and the effect of promotions is often good.
Of course, there are also textile companies that are “not short of money”. Some fabric companies that serve high-end brands have higher value-added products. As long as they can produce products with high quality and quantity, they don’t care much about these three things. But According to the “28/20 rule”, such customers are in the minority after all.
Symbiotic relationship between upstream and downstream
When the price of raw materials increases, the raw material factories are the ones I hear the most complaints from cloth bosses. They say that all the money is taken away by the upstream polyester factories, and they only make a hard-earned profit. Indeed, in normal games, because the number of upstream polyester factories is small and they have a higher say in product pricing, they can often win the game and capture more profits.
But on the other hand, polyester companies and weaving factories have a symbiotic relationship. Water can carry or capsize a boat. The more difficult the environment, the more necessary it is to ensure the survival of the relatively weak weaving factories. . Otherwise, even if a lot of money was made all of a sudden for some reason, many downstream companies suddenly closed down because of a broken capital chain. Who else could the polyester factory produce so much silk to sell to? Isn’t this just trying to catch a fish? No smart company would do this kind of thing.
Therefore, in this year’s situation, it is necessary for polyester factories to appropriately provide profits to downstream companies. It happens that the end of the month is the time for many weaving companies to restock. Taking advantage of this time to promote products can not only ship goods and control inventory, but also give textile companies the confidence to continue production. It can be said to be a win-win situation.
The end-of-month promotion has become a “repertoire” of polyester factories at this stage. It has happened many times this year, but the effect has been pretty good every time. This has also caused polyester manufacturers to have a certain degree of enthusiasm. “Path dependence”, under the current circumstances, maintaining liquidity and quickly realizing the goods on hand is the first priority, and everything else must be placed second.
Although relying on sales promotion every time is not conducive to the long-term operation of the company, but again, the market is like this now, it will be good if the goods can be sold, what more bicycles are needed!
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