Time has come to mid-March, and more than half of the “Golden Three” has passed. Looking back on this week, the textile market can be described as cloudy!
This week, international oil prices have experienced consecutive sharp falls. On Monday, international oil prices once fell by more than 5% during the session, and then plummeted in late trading on Tuesday, falling by 10% from their highs in two days. Crude oil prices plunged again on Wednesday, with losses widening as the Credit Suisse scandal unfolded. As of early Thursday morning, WTI crude oil plummeted 8% during the day, and Brent crude oil fell more than 7%. Affected by the collapse of crude oil, the entire polyester industry chain is green, from PTA to polyester filament, no one is spared…
Faced with this situation, many textile workers lamented: the traditional peak season no longer exists!
Order volume is rising steadily, with customer reserves becoming a key factor
Through market research, we found that since March, the polarization of orders received by various companies is still obvious. The orders received by most textile companies are relatively small, concentrated between a few thousand meters to hundreds of thousands of meters, and occasionally dozens of orders. Orders with a volume of 10,000 meters have appeared, while ultra-large orders with a volume of one million meters have almost disappeared. As the market logic changes, the “small batch, multi-batch” ordering model has gradually become the mainstream of fabric procurement.
Manager Lu, who specializes in nylon fabrics:
“Our company mainly sells domestically, and is accepting new and old orders well. Since March, the order volume has doubled compared with February, and the orders received can be maintained until at least the end of August.”
Mr. Jiang, who specializes in nylon fabrics:
“We focus on foreign trade. After entering March, the number of orders has increased, but larger orders have still not appeared. The existing large orders in hand were received last year.”
Mr. Wo, who specializes in polyester fabrics:
“This year’s foreign trade will be more difficult. The order volume is basically the same as in February and can last for about one month. I am worried about the subsequent order reception.”
At present, the risk of global economic recession is rising, the growth of external demand continues to slow down, and various “black swan” events occur frequently. These have affected the order maintenance of textile companies. The shortage of foreign trade orders is a certainty, and the descriptions of the above-mentioned companies also support it. Got this. Faced with such a severe market situation, the order volume of some textile enterprises of reasonable scale has shown a steady and rising trend, while small-scale enterprises are more likely to experience a “lack of orders”.
It can be seen that customer reserves have gradually become a key factor in supporting the total order volume. It is understood that since the resumption of work and production, many textile companies have gradually implemented measures such as preparing for various exhibitions, visiting customers on-site, and developing new media channels, and embarked on a journey to grab orders and customers.
To seize market share, product research and development may be the only way to go.
As one of the three elements of clothing, fabric can not only interpret the style and characteristics of clothing, but also influence the color and shape of clothing. It is still the “new period” of the textile market, and samplers will frequently shuttle to various shops in the market, sparing no effort to collect new fabrics. New fabrics are highly differentiated, which can not only bring new orders and customers to enterprises, but also bring more inspiration to fashion designers.
Manager Lu, who specializes in nylon fabrics:
“We focus on nylon fabrics and launch about 2-3 new fabrics every month. Although the base fabric is the same, the fabrics can show different effects through different finishing processes.”
Mr. Jiang, who specializes in nylon fabrics:
“The term “hot-selling fabric” no longer exists. We now have a high-weft-density nylon fabric that is very popular. It has the characteristics of good velvet resistance and strong tearing strength. It is the first choice fabric for making high-quality goose down jackets. .”
Mr. Wo, who specializes in polyester fabrics:
“Since our products are mainly sold to Southeast Asian countries and are conventional polyester fabrics, the current sales situation is not as good as expected.”
In recent years, due to the blind expansion of the textile industry, the problem of overcapacity has become increasingly serious, and the oversupply situation will be difficult to alleviate in the short term. Especially for the conventional varieties of “bad street”, companies often compete at low prices to compete for orders. Some people even issued a declaration of “as long as you don’t get involved in it, you will get involved in it.”
Therefore, developing differentiated products is the only way to seize market share. A textile “old master” said, “We have always put customers’ needs first, using their product development direction as a breakthrough point, focusing on developing fabrics that can solve customers’ pain points, refusing to roll in, and refusing to follow the trend.”
At present, the performance of the demand side is still mediocre. The fabric procurement pie is only so big. If textile companies do not come up with 1-2 “iron products”, how can they retain “favorable customers”?
Postscript:
When the cost advantage is no longer there, it is inevitable that foreign trade orders will be cannibalized by Southeast Asian countries. As uncertainties increase, some developed countries will also join the ranks of rushing for orders. The traditional peak season no longer exists, maybe…This is not an alarmist statement. Most textile people predict that April and May may be the critical period for the textile industry.
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