The first quarter of 2020 has come to an end. The epidemic has impacted the global industrial chain, and all walks of life are shrouded in a black atmosphere.
Recently, major apparel companies have released their latest financial statements for the first quarter of 2020.
Anta: In the first quarter of 2020, the retail sales of Anta brand products (calculated in terms of retail value) recorded a negative growth of 20-25% compared with the same period in 2019.
Li Ning: The retail sales of Li Ning points of sale (excluding Li Ning YOUNG) across the entire platform recorded a year-on-year decrease of 10%-20%. Offline channels (including retail and wholesale) recorded a low-end decline of 20%-30%, of which the retail channel recorded a mid-range decrease of 30%-40% and the wholesale channel recorded a high-end decrease of 10%-20%.
Semir: Affected by the new coronavirus epidemic at home and abroad, the company’s first-quarter operating income is expected to decrease by more than 30% compared with the same period last year, domestic business profits have declined, and the French Kidiliz Group has increased losses.
Luolai Life: In the first quarter of 2020, Luolai Life expects a profit of 57.8428 million yuan to 72.3035 million yuan, a year-on-year decrease of 60%-50%.
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The apparel industry has suffered heavy losses this year due to the impact of the epidemic. As the most downstream of the industry chain, its The quality of the market also affects every link upstream. The demand side has shrunk severely, and the market prices are transmitted to each other from top to bottom, linking one link to another, causing each link to be intertwined with each other and put great pressure on each other.
Raw materials for the first quarter
The price fell by more than 2,000 yuan, and the profit shrank by more than 100%
Since the beginning of this year, the price of raw materials has continued to plummet, making weaving manufacturers even more worried. end. As of the 26th, the prices of various polyester filament products have dropped to varying degrees from the beginning of the year, and the declines have all been more than 25%. Specifically, the price of polyester filament FDY150D products is around 5,350 yuan/ton, a decrease of 2,250 yuan/ton from the beginning of the year; the price of polyester filament POY150D products is around 4,720 yuan/ton, a decrease of 2,380 yuan/ton from the beginning of the year; polyester long yarn The price of silk DTY150D product is around 6,600 yuan/ton, a decrease of 2,250 yuan/ton from the beginning of the year.
Price has plummeted, and profits are not optimistic either. . As of the 26th, the profit of polyester filament FDY150D products was around 1 yuan/ton, a decrease of 186 yuan/ton from the beginning of the year, a decrease of nearly 100%; the profit of polyester filament POY150D products was around -229 yuan/ton, a decrease of 229 yuan/ton from the beginning of the year. Yuan/ton, a drop of over 360%; polyester filament DTY150D product profit is around -49 yuan/ton, a drop of 186 yuan/ton from the beginning of the year, a drop of over 135%.
Grey fabric in the first quarter o:p>
Price dropped seriously, inventory reached a new high
In 2019, due to the back and forth between China and the United States, the market continued to be poor. Before the Spring Festival in 2020, the market had not improved significantly. Beginning in January, the COVID-19 epidemic began to spread in the country, resulting in repeated delays in the resumption of work in the textile market after the year, about one month later than in previous years. The epidemic has led to heightened global concerns. Both domestic and foreign trade demand have been severely weakened, and many orders have been canceled and delayed. The insufficient follow-up of new orders by weaving manufacturers has led to the continuous accumulation of gray fabric inventory. According to statistics from China Silk City Network, the current gray fabric inventory in Shengze has risen to around 43-44 days, exceeding the highest inventory point last year.
Insufficient demand and high inventory have brought about The most direct result is that the price of gray fabrics is constantly being compressed, especially for conventional products. The production threshold is low, the daily output is large, and homogeneous competition is serious. The worse the market is, the more chaotic the prices will be. Take 210 polyester taffeta as an example. Recently, because it can be used as protective clothing, it has become a hot seller in the market and has become an “Internet celebrity” among low-end products. The market demand has increased, driving its price up compared with before. But overall, there is still a certain gap between the prices at the beginning of the year. And if the previously discontinued machines are restarted for production, their prices are still expected to return to low levels.
(The price of gray fabric fluctuates every day, this table is only Reference price)
Whether it is raw materials or gray fabrics, the situation has been relatively bad since the first quarter. The most important reason is that the demand in the terminal clothing market cannot afford it. Come.
Clothing for the first quarter
The demand for clothing has dropped sharply, and companies have encountered cash flow crises
In fact, in recent years, the clothing market has been sluggish, and most of them are in a state of excessive inventory. . Affected by the mild winter in 2019, inventories of down jackets and cotton-padded clothes piled up like mountains. In 2020, affected by the epidemic, traffic in shopping malls and stores dropped sharply, sales of spring clothing stagnated, and funds were under pressure.��Highlight.
). Among them, the cumulative exports of textiles were US$22.694 billion, a year-on-year decrease of 14.6% (a year-on-year decrease of 12.7% in RMB); the cumulative exports of clothing were US$22.570 billion, a year-on-year decrease of 20.6% (a year-on-year decrease of 18.9% in RMB).
The most popular news recently is that the American clothing giant GAP cannot bear it anymore. It has lost 7 billion yuan since February and its cash flow is expected to be next week. With only 5 billion yuan left, the company is in danger. It will suspend the payment of wages to more than 80,000 employees. The stock price has lost 60% of its market value, and it is suffering an unprecedented crisis.
Not only GAP, but most clothing companies have similar experiences. Vietnam’s largest state-owned garment company, Vietnam National Textile and Apparel Group, also said that due to the epidemic, overseas orders have dropped significantly, and it plans to temporarily furlough 50,000 employees. For global apparel companies like ZARA, they will face severe risks of supply chain collapse.
From raw materials to clothing, delivered in the first quarter The answers were miserable. The epidemic has put the entire textile and apparel industry chain in a vicious cycle of severely weak demand and prominent overcapacity. If the market wants to get better, it still depends on the demand of the apparel industry. But the very real problem is that the global epidemic is still spreading, especially in European and American countries. The epidemic is serious, it is difficult to resume work, incomes have shrunk, and it will take a long time for consumption to recover. When it is transferred to the domestic industrial chain, the prospects are also unclear.
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