Editor: Boss, what products have been hot-selling recently?
Boss Bu: No! Probably except for non-woven fabrics, there are no hot-selling products in the market.
In June, the off-season atmosphere has deepened, and the market has entered a “backwater” situation. It lacks the support of bright products and the market transaction performance is poor. Especially for conventional products, weaving manufacturers’ gray fabric inventories have reached high levels in recent years.
According to the sample companies tested by China Silk City Network, the current inventory of gray fabrics in Shengze has risen to about 43-44 days, which is 2- higher than the same period last year. About 3 days, which is about 19 days higher than the same period in 2018 and about 16 days higher than the same period in 2017.
It is difficult for weaving companies to get rid of their inventory. The reason comes from the low price of upstream polyester yarn, which makes it difficult to drive the sales of gray fabrics; the other reason comes from the sluggish terminal demand.
Polyester filament is priced at “floor price” and cannot be sold!
Since June, international crude oil prices have risen, driving up the price of polyester raw materials, thereby stimulating an increase in polyester filament prices. But in recent days, polyester prices have begun to fall again. Looking at the first half of this year, polyester prices are still declining overall, with prices of various products falling by about 20% compared to the beginning of the year. Compared with the same period last year, it is even more terrible. Specifically, FDY products dropped by nearly 28% compared with the same period last year, POY products dropped by more than 30% compared with the same period last year, and DTY products also dropped by about 26% compared with the same period last year.
According to the experience of previous years, polyester prices have increased It can drive the shipment of some gray fabrics, but the price of polyester yarn itself is currently at a low level and cannot rise even if it rises. The benefits to the gray fabric end are even more indescribable.
In terms of production and sales, generally speaking, manufacturers will stock up more or less goods before the holidays, but this time before the Dragon Boat Festival holiday, manufacturers are more enthusiastic about replenishing goods. Not good. Except for the strong sales of POY products driven by the promotion of polyester manufacturers, the production and sales of other products performed generally. The production and sales exceeded 100 for only one day, which can even be described as “barely”.
Terminal clothing is “in dire straits”, No need!
Recently, various clothing brands have announced their sales performance for the first quarter, and the data can’t help but make people sigh.
Adidas: First-quarter operating profit fell 93% to 65 million euros; sales fell 19% to 4.753 billion euros (approximately US$5.32 billion).
Puma; currency-adjusted sales in the first quarter fell 1.3% to 1.3 billion euros (approximately 1.4 billion U.S. dollars); operating profit fell 50% to 71.2 million euros.
TheTJXCompanies, Inc: Net sales in the first quarter were US$4.409 billion, compared with US$9.278 billion in the same period last year. Net loss for the quarter was US$887 million.
Zara parent company Inditex Group: Sales in the first fiscal quarter fell to 3.303 billion euros (about 3.7 billion U.S. dollars), operating loss in the quarter was 508 million euros, and net loss in the quarter was 409 million euros.
More data shows that from March to May, which coincided with the peak period of the epidemic in Europe and the United States, Nike’s operating income fell by 4% year-on-year, with a quarterly net loss of US$790 million.
Overseas epidemics are still spreading, and the epidemic has caused The serious losses of clothing companies have not stopped and are still continuing…
Large clothing brands are still unable to avoid losses under the impact of the epidemic, and even more Forget about other apparel companies. At present, the domestic epidemic has basically been controlled, but terminal demand is still difficult to recover. For the textile industry, clothing companies continue to lose money and accumulate inventory, and the demand for fabrics and gray fabrics has naturally shrunk sharply. Last year we have been saying that the ordering model of clothing companies has changed to “small batches, multiple batches”, but judging from this year’s situation, clothing companies are also experiencing unprecedented situations, and it is even difficult to protect themselves, so “small batches” may be Unsustainable.
On June 24, the International Monetary Fund (IMF) released the latest “Global Economic Outlook Report”. The IMF predicts that the global economy will shrink by 4.9% this year. , while the data released in April was a contraction of 3%, a decrease of 1.9 percentage points. The economy and demand have been devastated by the impact of the epidemic. In addition, upstream polyester yarn is difficult to drive the market. In July, weaving manufacturers will be in a difficult situation of destocking. Continued inventory accumulation and partial production reduction may become the main tone in the future.
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