As a textile person, I don’t like holidays the most. Holidays mean bad business, no orders, and no money to make.
But this year, many textile companies have said that they want to have an early holiday this year, but it is really difficult to start this business.
It was like this at this time last year
But this is the case this year
Although the sales of down jackets during “Double Eleven” are strong, the upstream weaving market is not satisfactory
The e-commerce “Double Eleven” period some time ago The first quarter earned enough attention. The final global transaction volume of Tmall Double Eleven exceeded 10 billion in only 96 seconds; Bosideng’s down jacket sales exceeded 100 million in 7 minutes; Uniqlo’s sales exceeded 500 million in 16 minutes…
Based on these data, the downstream demand seems to be still very strong, but why is the upstream fabric and weaving market not satisfactory?
“No more orders! But 200 looms in my factory are still open. Now we can only make inventory, but the price of raw materials has been Falling, the price of gray fabrics has also fallen, and I am very anxious. Anyway, I don’t have any orders. The New Year is early this year, so I really want to take an early holiday.” said the owner of a company that specializes in down jackets, cotton jackets, and casual wear fabrics.
Take down jackets as an example. Experts predict that the probability of a cold winter this year is 0. Coupled with the impact of overcapacity and Sino-US trade, in September and October Although the market has improved compared to July and August, and the sales of autumn and winter fabrics have loosened somewhat, it is still very different from the same period in previous years. Moreover, this wave of market conditions has not lasted long, and the market has basically entered the off-season again.
As necessities for down jacket fabrics, nylon and gallbladder fabrics have not seen much improvement in recent times. Judging from the research, the price of 380T nylon gray fabric has It has fallen by about 30%, and there is no profit to be made from the gallbladder. The sales of imitation memory are also poor, and there are still fire sales in the market recently.
It can be seen that the sales of autumn and winter fabrics this year are not smooth. Double Eleven did not bring any substantial impact. Instead, it was just a way for clothing factories to clear their inventories. Good opportunity. The discount on down jackets is very strong. Although the weather is not cold, consumers will buy one or two pieces due to their hoarding mentality. This explains why sales of down jackets are still strong despite the mild winter this year.
From an overall perspective, both weaving and garment companies are facing the problem of overcapacity this year. Gray fabrics, fabrics, and clothing are all in recession, and prices are low. Atmospheric pressure envelopes the entire industrial chain.
Ma Yun said that this year’s Double Eleven can actually be better. There are two reasons. One is that the weather is too hot. When the weather gets cold, clothing will The sales are a little better, but judging from the figures in Zhejiang, they are not very good. Last year it was second, but this year it became third. The main reason is that winter clothes have not been launched.
High inventory has also become the “straw” that “breaks” the weaving manufacturers
Recently, some textile sources revealed that the wave of factory closures in surrounding areas is still continuing. Several weaving factories have been falling due to raw material prices, and the prices of gray fabrics have also fallen. The inventory is high, but the market is too bad and the cloth cannot be sold. If we go out, we can only stop production.
According to the sample companies monitored by China Silk City Network, the current inventory of gray fabrics in Jiangsu and Zhejiang is about 37-38 days. Although it has decreased compared with the previous period, it has Compared with the same period last year, it is still at a high level. And since the beginning of this year, raw material prices have been falling, and the price focus of polyester filament products has fallen to the lowest level during the year, and has fallen back to the low level in July 2016.
The price of raw materials has fallen, and the price of gray fabrics must also follow. Decline, especially gray fabrics woven with high-priced raw materials before, can only be sold at low prices now, and they can only lose money. In addition, the market is really not going to pick up this year, and there are many companies that have been brought down by high inventory this year. However, when I heard the news of production suspension before the year, people still couldn’t help but sigh. After all, they would not survive this year.
China-US trade is one of the biggest negative factors this year. Good news has come again recently: on the morning of the 16th, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, Liu He, the Chinese leader of the China-U.S. Comprehensive Economic Dialogue, had a phone call with U.S. Trade Representative Lighthizer and Treasury Secretary Mnuchin at request. The two sides had constructive discussions on their respective core concerns about the first-phase agreement and will continue to maintain close communication.
If Sino-US trade��Further progress can be made, which may be beneficial to the subsequent market conditions. Whether it is market confidence or foreign trade orders, they may all improve. In addition, companies do not need to worry too much about the market. Generally speaking, due to the need to stock up before the end of the year, the market can still take a turn.
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