Trouble in the textile and clothing industry chain: Export foreign trade orders are almost “stopped”
February The outbreak of the epidemic in China delayed the recovery of the domestic trade market. Then the global epidemic broke out in March, which also affected overseas orders. Some textile companies have canceled orders due to the serious epidemic situation in the countries where their customers are located.
Some foreign trade companies said that orders from Italy and 300,000 meters of orders from South Korea were cancelled. Facts have proved that the current textile companies are “internal and external troubles.”
“The current epidemic has a relatively large impact on foreign trade orders, because we have had a lot of foreign trade orders in recent years. Now many countries have reduced or canceled orders due to the epidemic. We will see later Pneumonia epidemic, but I feel that after the epidemic is over, the market will be like that, and it will take time to recover.” said Mr. Wang, a foreign trade boss.
“Not even a foreigner was seen, the market and factories were deserted.” On March 7, specifically Mr. Deng, who supplies export clothing, told reporters that the extent of the losses is still difficult to estimate and everyone is at their wits’ end.
Langsha, known as “China’s No. 1 Underwear Stock”, also has export trading business. On the 6th, its relevant person in charge told reporters that the company’s export destinations are mainly to Europe, and some are also exported to the United States. “Exports are currently affected, and coupled with the previous trade war, foreign trade business is relatively difficult.” The relevant person in charge of Langsha said.
On March 6, the China National Garment Association conducted a survey on the resumption of work of garment enterprises. The results showed that 29.4% of the surveyed enterprises reported that orders had been reduced due to factors such as sluggish market demand and order cancellations. Some companies reported a sharp decline in domestic orders, and the replenishment of export orders also decreased.
Sijiqing clothes are sold by the pound, and the girls at the stall are live streaming
“All clothing is 9.9 yuan per pound”
“Buy more and get more free”
…
At first glance, I thought it was a promotion organized by a certain supermarket, but little did I know that it was a spring clothing sale organized by a clothing store at the Sijiqing stall. Affected by the epidemic, the physical stores of Sijiqing stalls were empty. In desperation, merchants had no choice but to resort to this strategy in order to reduce losses.
Hangzhou Sijiqing opened its market a few days ago, but due to the epidemic, the flow of people was still sparse. 140,000 factory stall merchants turned to e-commerce live streaming to save themselves, 9.9 yuan per pound! The owner of Hangzhou Sijiqing clothing store even weighed and sold spring clothes in the live broadcast room. Netizens shouted: Give me 10 pounds!
Sluggish sales have affected the clothing industry chain
Own a clothing production Zhang Xiao (pseudonym), who works in an OEM factory, sits blankly at the door of his factory for several hours. She never imagined that during what was supposed to be the busiest time of the year, she would only receive orders that she could count on her fingers. On March 7, she told a reporter from Time Weekly that it had been almost a month since work had resumed, and there were only 9 companies requesting goods, and fabric suppliers were unable to supply goods in time.
Jin Hao (pseudonym), who sells fabrics at the Zhongda Cloth Market in Guangzhou, has not yet received a notice from the market to resume operations. “The warehouse is currently closed and the products available are limited.” On March 7, Jin Hao told a reporter from Times Weekly that if he could not sell the goods, he would have to pay rent and salary costs of nearly 200,000 yuan per month.
Recently, some businesses told Times Weekly reporters that they have decided to abandon the production and sales of spring and summer clothing.
The epidemic has disrupted the original rhythm of clothing sales. “The epidemic will also have an impact on production plans for this summer and autumn, reducing or not producing.” Cheng Weixiong believes.
Many textile bosses said that it is difficult to make a good breakthrough in the market in the first half of the year, especially in the foreign trade market. After all, many domestic trading companies’ final customers are abroad, so terminal traffic is cut off. It can easily lead to poor domestic demand and foreign trade. This year’s “gold, three, and no gold” situation is already a certainty!
The fabric market is turbulent, and low prices have become a “trouble” for manufacturers
All bulk textile raw materials have fallen, which has also suppressed prices in the fabric market. Under such circumstances, many customers have lowered prices to fabric vendors, and market quotations have become chaotic.
Mr. Wang, who trades in the Wujiang area, said that market quotations have been chaotic recently, and customers have severely reduced prices. The price is close to the lowest price in recent years. Taking conventional 75D glossy satin as an example, the price in 2018 was around 2.70 yuan/meter, and now it is quoted at 2.10 yuan/meter.
The person in charge of a manufacturer of polyester taffeta lining on the market also said that he has taken the initiative to reduce prices recently. The current price of 210T polyester taffeta is 1.40 yuan/meter, which is higher than last week. It has fallen by 0.10 yuan/meter.
Another Mr. Chen, who trades in imitation silk, said that the price of polyester yarn has dropped by 500 yuan/ton recently, and gray fabric has also dropped a lot, reaching 5 yuan/meter before the price fell. Now it is down to more than 4 yuan, which is a price that has not appeared in recent years.
Price reduction and price reduction have become the main operations of manufacturers in recent times. The decline in raw materials has made it more difficult for the textile market, which was already sluggish in receiving orders, to receive orders. Many textile bosses said that there was a significant decrease in orders this week, the market price is unstable, and customers are not satisfied.�Feel free to take action.
Orders have been delayed and the warehouse cannot be stocked!
Textile factories are considering reducing their operating rates
Overcapacity is a common problem, especially for conventional varieties. Every factory All have a certain amount of inventory. When there are no orders to make, manufacturers will choose to produce conventional gray fabrics, which will inevitably lead to an increase in the inventory of conventional gray fabrics and make the problem of overcapacity more prominent.
The boss who produces memory cloth shook his head worriedly and said: “At present, we basically have about 100,000 meters of regular varieties in stock. The warehouse has been overflowing, and now it is piled up in our own homes. If the orders don’t come in, the chance of opening will be reduced. Although we are in the peak season of Golden Three, it already feels like the off-season. The market wave at the beginning of the new year is slowly fading, and customers are still reluctant to place orders. Really It’s too difficult.”
According to sample enterprise data monitored by China Silk City Network, the current inventory of weaving manufacturers is about 38 days, and destocking is slow. In addition, due to the outbreak of the epidemic abroad, foreign trade has been greatly affected, which has also led to a sharp reduction in the number of foreign trade orders, and the production enthusiasm of manufacturers has been suppressed. “You can’t sell it even if you produce it. Even if you sell it, you will easily lose money. It is unrealistic to take a holiday. Labor, rent, water and electricity are all there, so you can only do less.”
Profits have dropped to the bottom, and we dare not produce or sell cloth!
After the beginning of the new year, most manufacturers have more or less destocked operations because they are rushing to make new year’s orders. However, as the execution of new year’s orders comes to an end, new orders are completed. There was insufficient follow-up, and manufacturers began to slow down their inventory withdrawals.
It is understood that the current inventory of gray fabrics in Shengze has remained at the 38-day level this week and is difficult to decline. If new orders continue to not improve, the inventory has reached an inflection point of accumulation.
Nowadays, the crazy depreciation of raw materials has also caused the inventory of weaving factories to depreciate. After all, the prices of raw materials used to be higher than the current price for production. The person in charge of a manufacturer mainly engaged in pongee and polyester taffeta said that the current market situation is not good, and the plummeting price of raw materials has a greater impact on profits. He explained that the factory currently has about 40 days of gray cloth inventory, which was produced a year ago and was almost more than 4 million meters. At that time, the price of raw materials was relatively stable, but the current price of gray cloth has dropped by 0.10 yuan/meter, and this batch of inventory has directly depreciated. 400000.
A textile boss who opened a factory in Jiangxi said that he currently does not dare to increase the operating rate for fear of losing one meter of production. rice. “I haven’t received any orders since the beginning of this year. At present, I just want to clear the inventory as soon as possible. I don’t dare to produce more. Due to the global spread of the epidemic, the lack of orders, and the accumulation of inventory can easily cause inventory depreciation and capital backlog.”
Many textile bosses said that it is difficult to make a good breakthrough in the market in the first half of the year, especially in the foreign trade market. After all, the final customers of many domestic trading companies are abroad, so Terminal interception can easily lead to poor domestic demand and foreign trade! Dr. Zhang Wenhong predicted the epidemic: “According to the current global anti-epidemic situation, it is basically impossible for this epidemic to end this summer.” Friends in the textile and apparel industry need to be prepared for a protracted war! </p
