Keqiao China Textile City, the world’s largest professional textile market, officially opens today! And just three days later, China Oriental Silk Market, known as “China’s No. 1 Cloth Market”, will also begin to resume operations.
The two major textile clusters have opened their markets one after another. After the markets open, what kind of situation will the textile people encounter? How should textile people respond?
What will happen to textile companies under market conditions that have not been encountered in decades? ?
This year’s market situation is unprecedented in the textile industry for decades. After the market opens, textile people will also encounter some situations that they have never encountered before.
Orders everywhere! The backlog of demand urgently needs to be released
The first is the backlog of orders. When it comes to the textile market in 2019, most textile people will say that there are too few orders, and there are not enough large orders. They are all small batches and multiple batches, which do not make much profit and require a lot of energy.
After the beginning of this year, this situation may change.
On the one hand, during the month when China’s textile industry was “suspended” due to the epidemic, the demand in the domestic trade market decreased because people across the country were “hunkering down at home”, but on the other hand, On the one hand, the demand in the foreign trade market has not changed significantly. The current stage is when the market gradually starts to pick up in the first half of each year. Whether it is traders’ stocking needs or foreign trade orders accumulated in the early stage, they are real needs.
On the other hand, the Sino-US trade friction has begun to gradually ease. The United States has halved the additional tariffs on products worth US$30 million. The recovery of the US market is also good for the textile market. Definitely a major plus.
So overall, in the coming period, there will definitely be no shortage of orders in the market.
The “labor shortage” intensifies, and “robbing people” becomes the main theme
Secondly, the recovery of production capacity is slow. The epidemic has affected various aspects such as logistics and personnel circulation, and the impact is even more serious for personnel-intensive enterprises such as the textile industry.
At the beginning of previous years, there was no shortage of “labor shortages” in enterprises, and technical jobs such as car operators and security workers were even more popular in the eyes of enterprises. It is foreseeable that the situation will be more serious this year.
But there is not no good news. When the editor visited the market before the Chinese New Year last year, I found that many migrant workers in the company had not returned home. After asking, I discovered that after more than ten years of hard work, some of them had already started families and started businesses in the Yangtze River Delta region. Once the companies resumed work, they would be able to return to their jobs as soon as possible.
In addition, in order for companies to start operations smoothly, government departments in various places have also formulated corresponding policies. Yiwu District provides subsidies for chartered cars for companies that resume work, and provides subsidies for companies that introduce human resources. subsidies, and the Huzhou region even allocated 100 million yuan to reward people who came to work in the lake.
It is conceivable that as the “labor shortage” intensifies, the “war for people” among enterprises in various places will become the main theme in the next period of time.
Victory is imminent , epidemic prevention is still the top priority
Finally, epidemic prevention is still the top priority for enterprises in the next period of time.
I recently chatted with business owners I know well, and the most common topic they talked about was how difficult it is to buy masks and how difficult it is to prepare various anti-epidemic supplies.
Although the recent epidemic outbreak has been controlled, and the number of daily confirmed cases in areas other than Hubei has been declining, the more this happens, the more we must tighten our hearts.
As a labor-intensive enterprise, textile companies will require a large number of employees to be quarantined as long as one employee is diagnosed. At worst, this company may face “disaster”; at worst, the entire epidemic prevention work in that region may have to be overturned.
Therefore, for textile enterprises, they would rather start work later and the loom operating rate increase slowly, but they must also ensure that their own epidemic prevention work is in place.
Opportunities come with risks, survival is the first priority b>
What should textile companies do when faced with this unprecedented market situation? The editor here has two immature suggestions for reference only.
Be cautious when accepting orders and pay attention to the delivery date
First, be cautious when accepting orders. As mentioned above, after the beginning of this year, because demand needs to be released urgently, there will be no shortage of orders in the market. The editor also saw the news today that a textile foreign trade company in Huzhou received an 18 million U.S. dollars on the first day of resumption of work in the new year. large foreign trade orders.
But at the same time, we must see that the problem of “labor shortage” has led to…The recovery of manufacturing enterprises is slow, and there is a shortage of professional talents in the dyeing and finishing industry, so the probability of encountering such problems is greater.
Therefore, in the period when the market first opens, the order completion speed is bound to be longer than in previous years. When receiving orders, companies must set aside more time than in previous years. Prepare in advance to respond to the slow recovery of production capacity in the textile industry chain and various emergencies that may occur.
Cash is king, survival is the most important
Second, it is necessary to ensure sufficient cash flow. This year’s market situation has never been experienced by anyone, and anything could happen next. The price of polyester raw materials may fall to the bottom due to excessive inventory, or it may start to rise sharply due to excessive orders; logistics may decline due to the easing of the epidemic. It may become smooth, or it may become slow due to some accidents; clothing may explode due to suppressed demand, or it may continue to be light as last year…
In short, this year’s market The textile market will become very difficult to predict. Under such circumstances, textile companies must “have money in hand and not panic in mind” and think twice before committing actions that require a large amount of their own cash flow. This year, the most important thing is to ensure that you can survive.
Editor’s note:The two major textile clusters in Jiangsu and Zhejiang are opening up one after another The market means that the textile market in the new year is finally about to begin. With demand backlogged due to the epidemic, there may not be a shortage of orders after the start of the new year.
However, the “labor shortage” makes it difficult to quickly restore the production capacity of all links in the textile industry chain, and the time to complete the same order may be much longer than before. Textile enterprises need to focus on stability and strive to ensure their survival while epidemic prevention is the top priority. I believe that as long as we survive this period, hope is ahead!
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