Some people say that 2019 will be the coldest winter in the textile industry;
Some people say, The textile industry is facing a radical change;
Some people say that intelligently upgraded textiles will bring a different kind of vitality;
How will the development of the textile industry be in 2019?
“If you don’t lose, you win”! The textile and apparel environment is not easy: companies are suffering a lot of losses and profits are shrinking
It is understood that since entering 2019, the number of companies in the textile and apparel industry has hovered between 13,637, which is relatively high. There is a big gap between the average number of 14,555 in 2018. The number of textile, clothing and apparel companies in August 2019 was 13,660, almost at a low level in the past four years. Sure enough, after 19 years, the profits of the textile, clothing and apparel industry are shrinking.
The cumulative total profits of the textile and apparel and apparel industries from May to August 2019 were -1.3%, -0.8%, -3.5%, and -1.1% year-on-year respectively. Businessmen are chasing profits, industry development is sluggish, profits are falling, and practitioners change careers or even go bankrupt, which will inevitably lead to a decline in the number of companies.
Figure 2 Statistics of loss-making enterprises in the textile, clothing and apparel industry from 2016 to 2019
Although the number of textile and clothing and apparel industries is declining, the proportion of loss-making enterprises is increasing. The average proportions of loss-making companies from 2016 to 2018 were 14.9%, 14.1%, and 18.2% respectively. The average proportion of loss-making companies in 2019 was 21.5%. In other words, 21.5 of the 100 companies in the textile, clothing and apparel industry were loss-making. It is understood that the export of textiles and clothing is hindered, the domestic market is under great competition pressure, there is too much to eat, and the price war is intensifying, profits will naturally decline, and losses are not difficult to imagine.
Figure 3 Statistics of loss-making enterprises in the textile, clothing and apparel industry from 2016 to 2019
The textile, clothing and apparel industry has not only declined in quantity, but also in quality.
After 2019, the number of loss-making enterprises in my country’s textile, clothing and apparel industry has increased, especially since April. The number of loss-making enterprises from April to July was 10.2%, 7.2%, 9.2%, and 10.1% respectively year-on-year. What is even more shocking is that the number of loss-making enterprises in August increased by 14.1% year-on-year. It is not difficult to imagine that the growth rate of losses in my country’s textile, clothing and apparel industry is expanding in 2019. The cumulative amount of losses in August increased by 33.3% year-on-year, and the average year-on-year growth rate from January to August 2019 was 29.8%.
From the data, the textile and apparel market this year is clear at a glance. No wonder practitioners say that profits are shrinking this year and they are not making money. Some even say “if you don’t lose, you win.”
Taking the blame and taking the blame, the “dominos” in the textile market are loose at the end of the year!
Since this year, textile companies have been under the greatest pressure, because almost all the companies upstream of them sell on credit, but they have to pay cash to buy raw materials. In this way, weaving companies Enterprises are equivalent to “taking the biggest blame” and “taking over the most troubles.” As long as there is a problem in one link of the production chain, weaving enterprises basically have no hope of receiving money. As for advance payments, when everyone is short of money Well, this is almost non-existent. As the new year is approaching, the holiday schedule of various companies has basically been announced, and the number of active days in the market is relatively limited, with less than a month left. Recently, the main work of various companies is mainly to collect debts, with the purpose of realizing cash at the end of the year.
1. Weaving market: 2-3 debts The monthly payment period is normal
This year’s debt period: This year, the debt cycle in the gray fabric market has basically remained at 2-3 months, and even half a year or more, and even bad debts have occurred. In short, this year’s gray fabric market is dominated by arrears, and a few manufacturers settle in cash. Regular customers make running payments and take a batch of goods to pay a batch of payments. This situation is very optimistic.
Time of arrears in previous years: In 2017, due to the shortage of supply and the hot market of waiting for goods, the arrears of gray fabrics have been greatly improved. Most of them are cash loans to pick up goods, and rarely There are arrears, and even if they are arrears, it will be about a month, not too long. In 2018, with excess demand and the market gradually weakening, the debt period for gray fabrics has gradually lengthened to 2-3 months, and sometimes even longer.
Mr. Yang, a manufacturer mainly engaged in imitation silk raw weaving, said frankly: “This year’s account arrears are worse than in previous years. Recently, I dare not pay for goods because I am afraid that I will not be able to collect them. Customers have owed money in the past.” 1 month, now we owe 2 months or even more, and we have been collecting payments this year.”
2. Textile traders: Arrears extended to more than 3 months
Time of arrears this year: Arrears of trade orders The arrears are even worse than those of gray cloth, and this has always been the case. Most domestic trade orders require a deposit, and the remaining payment is in arrears. This year, the period of arrears for this part of the payment has also been extended from monthly settlement to more than 3 months, or even longer. In contrast, the situation of foreign trade arrears will be better than that of domestic trade, and payment collection will mostly be carried out according to the contract, which is lower than in previous years.Not much has changed.
Date of arrears in previous years: In 2017, the supply of gray fabrics exceeded demand, which also made traders stiffen up. There was no shortage of orders and they were even too busy. This was used to screen out customers and collect payment. Slow customers are eliminated, so the payment situation is improved, and most of them are based on monthly settlements. By 2018, orders gradually decreased, and traders had to re-establish customers with poor payment, and customers who originally paid quickly also extended their arrears, so the arrears were extended to February to March.
A person in charge of a trading company revealed: “This year, there are more domestic trade arrears. An old customer had unsettled payments from the year before last, and also had unsettled payments last year. , plus this year’s, the total amount of arrears is more than 1 million. Every time I go to ask for payment, I often pay 100,000 every few months, and I won’t be able to pay it off if I continue like this.”
In the context of overcapacity and shrinking demand, gray fabric merchants and traders have resorted to cash discounts and credit sales in order to expand sales and increase market share. This is also a last resort, but it also makes the application Collections increased.
As the saying goes, “Every year passes, and every year passes.” This year’s textile market environment is not in good shape. The improvement in payment collection in the past two years has been consumed by the weakening market, and the demand for goods with arrears has become even stronger. For enterprises in the textile industry chain this year, the biggest problem encountered should be “money shortage”. This may be the last straw that crushes enterprises under the struggling market this year! </p
