Recently, there have been some strange methods of selling cloth in the circle of friends:
This can’t help but remind people of last year when the price of pork skyrocketed. Whether it was the textile people selling polyester filament, polyester raw materials, or the textile people selling gray fabrics, they all had the same situation. The idea of ”Second Senior Brother” came up, and marketing advertisements for giving away two kilograms, three kilograms, or even a whole pig of pork appeared one after another.
And now the way to send masks is the same as sending pork It’s exactly the same. No one expected that at the beginning of 2020, a “black swan” would appear – the new coronavirus epidemic. The outbreak of the epidemic has made masks become an “Internet celebrity” product. It is hard to find a “mask” on the market. The price of masks has increased from more than 1 yuan to nearly 5 yuan a piece, and the price has increased by nearly 300%. Although the current capacity utilization rate of mask companies has reached 110%, and the daily output of masks has reached 54.77 million pieces, and is expected to reach 180 million pieces/day by the end of February, it is still far from the gap in the entire market.
Although the marketing content of textile companies buying cloth and giving away masks is full of gimmicks, it is also filled with the concerns of cloth bosses about this year’s textile market.
Overcapacity has always been a “stubborn disease” in the textile market!
At present, textile companies on the market have resumed production one after another. Some companies have received new orders, and some companies’ gray fabrics have There is even a tendency to increase prices because market production capacity has not increased as expected. But behind this, it is mostly due to the epidemic that previous orders were backlogged. Now that companies have begun to resume production, logistics has begun to slowly recover, and orders have begun to be placed one after another.
Because workers cannot return to work normally, the market operation rate is low. It is reported that the current operation rate of water-jet looms in Shengze area is 20%-30%, and that in Changshu The average operating rate of warp knitting in the region is around 20%, the operating rate of circular knitting machines in Xiaoshao is around 15%, the average operating rate of warp knitting in Haining is 40%-50%, and the average operating rate of water-jet looms in Changxing is 10 %-15%. This is a very obvious gap with the loom operating rate during the same period in previous years.
But this is only the current situation. Once the epidemic is effectively controlled or ends early, the return rate of weaving enterprise personnel will be greatly improved, and the operating rate of looms will naturally increase accordingly. Therefore, we cannot forget how much overcapacity caused by the surge in peripheral looms in the weaving market in the past two years has had an impact on the entire textile market: closures, production cuts, and stockouts are common, and the inventories of weaving companies have reached their peak in recent years. According to statistics from China Silk Capital Network, the highest gray fabric inventory of weaving companies in 2019 will reach about 43 days.
And the epidemic is only the current return of workers , and the shipment of gray fabrics has been affected, but the number of looms increased after the crazy capacity expansion is still there. After the operating rate returns to normal, these looms will start to operate 24 hours a day, and the overcapacity situation may reappear.
Big-name companies have suffered heavy losses. Guangzhou’s 13th Bank of China has postponed its market opening indefinitely. The epidemic has seriously affected clothing companies!
For textile companies, the terminal clothing market must have the greatest impact on their market conditions. However, due to the impact of the epidemic, most shopping malls and various offline clothing stores are still closed from the Spring Festival to now, which has a huge impact on the sales of spring clothing of clothing companies.
Adidas: Since the Spring Festival on January 25, its business in Greater China has dropped by about 85% year-on-year, and China accounted for Adidas’s 2018 sales 20% of the amount.
Puma: China accounts for 13% of sales and is also its most profitable market. However, due to the epidemic, in March orders will be delayed by 3 months.
Nike: Chinese factories are no longer able to produce normally, and half of their domestic direct-operated stores were closed in early February.
Levi’s: Closed half of its stores in the Chinese market, estimated to account for 3% of the group’s revenue.
Others: Uniqlo, Gap, H&M, Youngor, etc. have also issued closure notices.
Big-name companies are not immune to the epidemic, let alone other small clothing companies and ordinary offline stores.
As one of the largest first-level wholesale markets in the country, the resumption of work of Guangzhou No. 13 Bank has also attracted the attention of textile companies. On the 17th, the Guangzhou 13th Bank issued another notice: The original plan to open the market on February 21 was postponed again.The time is uncertain and will be notified later depending on the epidemic situation.
The indefinite postponement of the Thirteenth Line has undoubtedly dealt a heavy blow to the clothing dealers at the stalls. Now is the time for spring clothes to be sold hotly. The funds invested by clothing dealers in spring clothes range from hundreds of thousands to tens of thousands. There are millions of them. After the epidemic, spring clothes are basically no longer available, and funds are tied up. Some stall owners once said that many owners would lose millions during the market shutdown.
The situation in Shisanhang is just a microcosm of the contemporary clothing market, but as one of the largest first-level wholesale markets, it is not difficult to see that the current situation is affected by The clothing industry affected by the epidemic is indeed miserable. In recent years, the clothing market has experienced a downturn, with high inventories. Clothing companies are more cautious in placing orders, mostly using the “small batch, multi-batch” model.
Now coupled with the impact of the epidemic, capital turnover is difficult, and there is no more funds to purchase fabrics in the second half of the year. This has a direct impact on the textile industry. This is one of them. Secondly, the inventory of spring clothing is overstocked and products are difficult to sell. During the epidemic period, residents’ income is not high and logistics is slow. Non-essential expenditures on clothing will naturally be reduced. As a result, the return rate of spring clothing is not high, so the demand for fabrics Naturally, there was a subsequent decline, and the sales of spring clothing fabrics fell short of the psychological expectations of textile companies. The textile industry chain is booming and losing, and fabric sales are declining, which not only affects the sales of gray fabrics, but also affects the market conditions of dyeing plants and finishing.
Not only that, the epidemic has spread around the world. People infected with the epidemic have appeared in South Korea, Japan, Iran, Italy, Canada, and the United States, and every year in these countries They all import a large amount of textiles from China, and if their epidemics are not controlled, the foreign trade situation in the textile market will inevitably become more severe this year.
Buying cloth and giving masks is actually the sadness of textile workers. It is too difficult to do business, and it is even more difficult to encounter a worse economic environment during difficult times.
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