The textile industry is very difficult this year! Weaving manufacturers have difficulty selling inventory, purchasing enthusiasm is difficult to revive, and polyester production and sales have been hovering at a low level for a long time… Even the traditional peak season in the first half of the year came to an abrupt end due to the epidemic. The desolation has continued to this day, and has become even worse.
Hebei opens another printing factory Loss-loss trade: 1.5 yuan per meter of digital printing
According to past experience, whenever the market is deserted and inventories are high, many manufacturers will choose to use price reduction promotions to seize the market. At this time, price wars are often in full swing. Although it is inevitable to kill one thousand enemies and lose eight hundred to oneself in a “price war”, in order to seize customers and maintain one’s market share, when necessary, many The textile boss will still resolutely join the battlefield. Recently, the market broke the news that the printing price has been reduced to 3 yuan per meter, which is not profitable at all.
Generally, the price of printing is about 4 yuan per meter. 3 yuan is already as the bosses complained in the picture above, it is a very low-profit price. But in Shenze, Shijiazhuang, a printing factory even started a loss-making business of 1.5 yuan per meter in order to grab orders!
How can the price of 1.5 yuan per meter be reduced to such a low price? This boss’s printing venue is his own factory, and the production is done by the whole family, similar to a family workshop, eliminating the cost of space and labor. In addition, the local water and electricity bills are relatively cheap, and basically only ink, paper and other materials are consumed, which keeps the cost to a minimum. But even so, the price of 1.5 yuan per meter is still losing money.
According to the boss’s introduction, he did this because he had just started and wanted to attract customers through extremely low prices. Customers now have relatively low requirements for product production. Xiaojiafang accepts everything from ice silk sleeves to door curtains. Waiting until the popularity increases and then raising the price to 2.5 yuan per meter, it can be said that it is completely making hard money.
Of course, the boss of Fukasawa is just an example, but for the entire digital printing industry, price war is a sharp knife The top is getting closer to everyone.
Anhui Cotton Mill’s helpless move: It is the fourth holiday this year, lasting 20 days
On July 30, a 20-day holiday for a small cotton spinning factory in Anhui Province has just ended. It is understood that this is the fourth holiday for the factory since the resumption of work and production this year, and the holiday period has been gradually extended from the initial 5 days to 20 days. .
Increasing the number of holidays and extending the holiday time is also a helpless move for many cotton spinning mills this year. Before the global COVID-19 epidemic fundamentally improves and under the influence of Sino-US trade friction, cotton spinning mills will have difficulty operating this year, with not only few orders but also meager profits. Up to now, through the investigation of many small and medium-sized cotton spinning mills in Anhui Province, the characteristics of the current off-season are more obvious, and the operations of cotton spinning enterprises are bleak. The most prominent manifestations are: first, the sales price of cotton yarn has dropped, and profit margins have been gradually compressed under the high cotton price, and many cotton spinning mills have fallen into loss-making operations; second, it has become increasingly difficult to sell cotton yarn, and cotton yarn inventories have gradually increased, and enterprises Financial pressure is highlighted.
According to the person in charge of a 100,000-spindle open-end cotton spinning mill, although they have already adjusted their cotton yarn product structure according to market demand, they no longer produce high-count yarns of 40 counts and above, but Produces low-count yarns of 32 counts and below with good sales. However, after entering the off-season in July, the “sales price” and “sales volume” of cotton yarn did not improve significantly. The current sales price of 32-count open-end pure cotton yarn is 17,000 yuan/ton, and it has been reduced by 200-300 yuan/ton within a month. The person in charge said that since the company currently does not have sufficient funds, raw material procurement mainly comes from low-priced Indian cotton and American cotton purchased on the market to ensure the normal operation of the company. However, the recent sales of low-count yarns have also replicated the previous difficulty in shipping high-count yarns. Daily cotton yarn sales only account for 2/3 of production, and there is still 1/3 in inventory, which puts increasing pressure on enterprises.
Some people have a holiday, and some people sell goods! The current situation of textile companies under the “cage” of price war
Under the new crown epidemic, the clothing industry is also experiencing the most serious “big retreat” since the reform and opening up. Some experts predict that the overall apparel industry will lose at least 400 billion yuan in revenue this year, and the overall market size will shrink by 15%.
In the past six months, fast fashion brands such as Uniqlo, Zara, H&M, GAP, and La Chapelle have announced the closure of some stores. From capital enthusiasm to store closures, most clothing brands All are at risk.
As the upstream fabric market in the apparel industry, it has also been under the greatest inventory pressure in recent years. In this environment, some textile mills have begun to sell goods at low prices. In an era of poor market conditions and tight funds, it is a good way to “liquidate” the gray fabrics in the warehouse at a low price.
As Mr. Shen of a textile factory said: “The market prices have been too chaotic recently. Customers asked us to reduce it by another 2 cents. We really can’t do it, but we are afraid of losing customers. I can only grit my teeth and take it.”
However, during the visit, in the face of the current difficulties, some textile companies have adopted measures to “reduce costs and production capacity” to maintain normal business operations. operation. Cost reduction means adopting appropriate ways to purchase raw materials to reduce costs and ensure��With no loss or less loss, production capacity reduction means to control production capacity by increasing the number of holidays and extending the holiday time while continuing to implement measures to reduce shifts.
Mr. Shen, the owner of a textile factory that specializes in polyester taffeta, Oxford cloth, and pongee, said: “Although we have more than 400 looms, the current inventory in the factory is A lot, it’s been almost 2 months, but we won’t sell at a loss, at most we will sell at cost price. Price war is not a good thing for the market.”
Another one makes home textile fabrics. Mr. Shen also said that he would put the inventory first and make orders when there are orders. If the market is not good, he would choose to take a holiday. Mr. Qian, who makes imitation silk, said: “Currently, there are almost 5 million meters of inventory in the warehouse. Chiffon is too common in the market. The products are not suitable. Even if we sell them at a low price, no one will necessarily want them, so we will not sell them by deliberately lowering the price.” Goods will make the price bad.”
If the consumer side of clothing is not good, it will inevitably cause negative feedback to the upstream products. This has also led to the supply and demand in the fabric market this year, and the price has dropped significantly. Prices of individual products have even hit record lows.
Most textile bosses are cautiously optimistic about the “Golden Nine and Silver Ten” that once had high hopes. Although domestic demand and foreign trade markets are still recovering slowly, the market still exists. There are many uncertain factors, making it unclear whether the textile peak season can arrive as scheduled. In addition, the large amount of clothing inventory left over from last year has not been fully digested, which will inevitably affect the speed of the new round of replenishment.
But what is certain is that the cake of the market will always exist. No matter which industry it is, it will face the law that if it rises for a long time, it will fall, and if it falls for a long time, it will rise. Ten years ago, the textile industry also faced the dilemma of shrinking demand as the market turned cold, but eventually it slowly ushered in recovery and prosperity in the next few years. However, how long do textile people need to persist in this cold textile winter? I’m afraid no one knows!
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