It is said that in the magical year of 2022, the market will become more and more difficult to operate. So what kind of pressure will fabric companies in the gap between upstream and downstream be under? The traditional peak season “Golden Nine and Silver Ten” is coming, can fabric companies seize the opportunity?
Fluctuations in raw materials make fabric companies hamstrung
Faced with many uncertain factors, both chemical fiber and cotton have been under attack from many aspects.
The ups and downs of the crude oil market have caused several major Zhejiang chemical fiber companies, which are industry leaders, to frequently gather to discuss countermeasures and use self-discipline to reduce production to deal with rapidly depreciating high inventories. Under high costs and weak demand, it is a helpless decision for the world’s largest chemical fiber production base to make such a decision.
Coincidentally, cotton-related companies are also having a hard time. Not only do they have to face ups and downs at the raw material level, but they also have to deal with the intensifying Xinjiang cotton ban.
Judging from the survey, traceability of cotton, cotton yarn, gray cloth, fabrics, clothing, etc. has almost become an inevitable option for cotton-related companies to receive export orders. Not only foreign trade companies and European and American buyers need it, but also re-export traders in Southeast Asia, ASEAN and other countries also need processing methods. , provided by Chinese export enterprises, otherwise it will be difficult to integrate into the overall cotton textile and cotton clothing export circle.
Raw material companies are overwhelmed, and the pressure is bound to pour on their downstream weaving companies. Faced with many uncertainties, the operating rate of weaving enterprises cannot be guaranteed, and key factors such as fabric costs have become increasingly uncontrollable.
Consumption downgrade leads to decline in domestic demand for fabrics
Food, clothing, housing and transportation are an indispensable part of people’s lives. But since the outbreak of the epidemic, a word will appear in our conversations from time to time. “Consumption downgrade” seems to have become a phenomenon that we have to face.
After reading these comments, do you feel a sense of empathy? A recent research report released by the China Textile and Apparel Industry Federation seems to support this phenomenon. The report comes from 2,427 sample surveys. According to the report: Affected by various factors such as the COVID-19 epidemic, consumers’ income is lower than expected. Therefore, their desire and consumption ability for clothing have declined. Everyone’s consumption of textiles and clothing Both frequency and overall spending are decreasing.
This conclusion may be bad news for the upstream manufacturing industry, because this phenomenon may lead to a decline in the domestic demand market for textile and apparel. In this regard, the editor specifically asked a company that specializes in women’s fashion fabrics. The person in charge of the company said: Recently, the market opening rate is low, the dyeing factories are relatively idle, and the best-selling products basically have no specific varieties. As for the sales level of their own products, I also feel that it is not as good as in previous years, and I can only receive some small orders one after another.
Taken together, life is really difficult for fabric companies that are facing enemies from both sides. However, judging from the performance of previous years, the traditional peak season “Golden Nine and Silver Ten” that can improve transaction volume is just around the corner. How to seize the opportunity in this peak season is particularly important. Fabric companies may start with subtleties to meet the personalized needs of consumers; they may start with publicity channels and use new media to enhance their influence and visibility; or they may start with research and development to solve consumption problems. The pain points of readers… I believe that in difficult situations, you can always find a way to break through that is suitable for your own development!
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