This year’s textile market may be the worst year that all textile workers have encountered since they started working in the industry. Various order cancellations and payment delays have almost never stopped since the beginning of the year. The unusual year has also made many idle textile people start to think about how seemingly indispensable clothing can fall to the point where almost no one needs it. Where should their textile business go in the future? Is it better to continue in the textile industry? Should the industry continue to struggle, or should we pack up and change careers to something else?
There are not many people who are determined to change careers. At most, they can use their free time to do other part-time jobs. After all, there are so many different careers, and there is basically nowhere to go if you leave the textile industry. Then we can only continue to think of ways to continue to use light and heat in textiles. Normal people think of updating equipment, developing new products, etc., but in this year’s market situation it is obviously a bit unrealistic. Not to mention the huge initial investment, even if the research and development is successful, then can the product gain market recognition and when can it really be brought to the market? The revenue is also unknown. These are all too complicated. The most convenient way is to copy other people’s successful methods, such as the seemingly simple spot market for finished fabrics.
The spot market has low costs, good profits, and quick payment
When thinking about the spot market, ordinary textile companies are always full of yearning. Stocking a large amount of stock can obtain low-priced gray fabrics and dyeing fees, thus reducing costs and ensuring profits. At the same time, the retail model also ensures payment. These advantages are also coveted by other textile trading companies, so the transformation to this aspect has become a life-saving straw for many textile companies in the off-season.
“Our company mainly produces various types of autumn and winter fabrics and women’s clothing fabrics, but the market is so bad this year that there are almost no orders. I started to develop into the finished product spot market, and now in We already have dozens of varieties and more than 100 colors available for cut chiffon.”
“We started to sell fabrics in June this year and specially selected a new variety of T8 fabrics. , there are not many people doing this in the market at present. We currently only make one specification and dozens of colors, and we will try to adjust and increase after seeing the market response.”
“We are mainly engaged in foreign trade exports, and we are particularly dependent on the European and American markets. However, in the first half of this year, both order volume and profits fell by more than 50%. Recently, I feel that it is unsustainable to rely solely on orders, and we are preparing to transform to spot finished products. , now I am considering some high-density polyester taffeta types. There are currently relatively few of these on the market, and even if they are available, most of them are only black and white.”
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This year, so many textile companies have been prompted to transform to finished goods. On the one hand, this year’s market is not good, and textile companies are eager to find a way out. The impression is that they have The spot market with various advantages has become the main choice. On the other hand, the costs of gray fabrics, printing and dyeing, and finishing are at historical lows this year. At this time, entering the market can lock in these low costs. But is the spot market really so good this year? Is it worth everyone to follow?
The market is saturated, and orders for market goods are fleeting.
This year’s finished product spot market may be It has disappointed many people who have just come in or those who are planning to come in. Your impression of the spot market as low cost, good profit, and quick payment may really only remain in your impression.
“Our business district is mainly engaged in spot sales of fabrics. This year’s business has been very bleak, especially since July. Not only are there few orders, but profits have also dropped sharply, mainly because there is no foreign trade business this year. However, many textile companies have gathered in the domestic trade market, and the competition is too fierce. In addition, in order to obtain orders, everyone has to pay first, and now it is difficult to get payment.” A person in charge of the spot market said.
There are no longer a handful of finished product companies in a similar situation to theirs, and the reasons for this situation are all the same. The number of orders is already low, and many companies are following suit, which makes it aggravated. The competitive pressure in this market and the previous profit and payment advantages are completely gone.
In fact, the potential of the spot market is very limited, as can be seen from the recent status of dyeing plants. In the past week or so, many dyeing factories across the country have suddenly heard news of improvement, and even the queues for press cards that only occur during the peak season have appeared. The orders that have overwhelmed dyeing factories are actually mainly live fabrics, which are common fabrics in the spot market. However, the stamina of this wave of market is very limited.
According to an employee of the dyeing factory, among the three workshops in their factory, only one workshop has more market activities and is busier. The orders in other workshops are mediocre, and the order volume in the past two days has also been low. After I got there, I was busy for just over a week.
Usually when market orders come in, the peak production season is about a month, but this year’s volume of more than one week is really difficult to compare with previous years. At the same time, it also shows that the spot market orders are limited, and even in July and August when all costs are low, it is difficult to stimulate interest in production and stocking.
Textile people who have already entered the market have more or less realized that the spot market is not an absolutely correct way out. Even if you choose If you choose a product that is absolutely niche in the market, it will be a huge investment in pre-stocking, marketing, etc. At the same time, because it is niche, the order volume must not be large. Even if you are the only one in the market, there is no guarantee that this order demand can survive.
Don’t follow the trend easily, and don’t be fooled by all kinds of low prices. The pits behind the spot market are much bigger and more numerous than you think. </p
