In recent days, overseas epidemics have continued to spread, and many provinces and cities in my country have experienced epidemic rebounds. Domestic fabric companies that have just regained some “vigor” are facing a new round of tests.
So, under the situation where many uncertainties exist, will the “Golden Nine and Silver Ten” situation of my country’s fabric market still occur this year?
The operating rate does not rise but falls
As the traditional peak season of the textile market in September and October approaches, the textile market in August The market should have been busy with preliminary preparations, but in fact, relevant platform monitoring results show that the market is even more deserted on the eve of the peak season, with the peak season likely to be postponed or even cancelled.
Longzhong Information statistics show that from August 6 to August 12, equipment shutdowns and load reductions in major domestic weaving production bases intensified. During the period, the comprehensive operating rate was 67.71%, a month-on-month decrease of 2.45%. Specifically speaking of each loom type, the operating rate of air-jet looms is 70% to 80%, the operating rate of circular knitting machines is 40%-50%, the operating rate of water-jet looms is over 70%, and the operating rate of warp knitting machines is 70%-80%. become. As some textile markets closed down and delisted, the transaction volume in the gray fabric market declined rapidly, and inventories once climbed to the high level of the same period last year.
A person in charge of a printing and dyeing company said that after entering July, the market clearly felt the off-season conditions. The factory only receives 300,000 to 400,000 meters of gray fabric every day, which cannot meet the company’s daily production capacity of 700,000 meters. After entering August, although the amount of gray fabrics entering warehouses rebounded slightly, and the daily production capacity once reached 400,000 to 500,000 meters, it did not last long, and hot-selling products were scarce.
“This year’s market is not the same as in previous years. From 2019 to 2020, the operating rate of weaving mills in Jiangsu and Zhejiang increased sharply from the end of July and early August, but this year’s upward trend is not obvious. . After entering August, the operating rates of looms in major textile clusters have even dropped to varying degrees.” In this regard, some industry insiders analyzed that this is due to the overdraft of orders in the second half of the year and the “lack of new orders”.
The reduction in orders has given the textile mills no incentive to increase their operating rates. What is even more worrying is that because the textile industry has the characteristic of stocking up in advance, the current situation reflects not only the current poor market conditions, but also the lack of confidence among buyers in the market in the future. Some insiders predict that this phenomenon will be difficult to improve in the short term. Under the influence of the epidemic, downstream buyers continue to be pessimistic, and most garment companies choose to reduce their load. In the absence of consumption and purchasing power, the overall weaving market is running slowly.
This makes everyone worry, will this year’s “Golden Nine and Silver Ten” in the fabric market come to nothing?
The future trend is uncertain
“It is very unlikely that the ‘Golden Nine and Silver Ten’ will appear this year.” Once in Southeast Asia, Africa, etc. Liao Hongying, who has worked in multiple industrial parks in the region, bluntly told reporters that the global textile industry is currently in a slump. Since 2020, many global clothing brands have been waiting for the epidemic to ease to improve the decline. But from the current point of view, the global epidemic is still serious, consumers are not willing to consume, and orders will naturally decrease.
“The long-term, complex and uncertain nature of epidemic prevention and control is testing the operation and viability of fabric companies. Especially for many foreign trade companies, they will have to survive in the second half of this year. is the primary goal.” Liao Hongying said that the surge in shipping logistics prices has put pressure on many foreign trade companies.
Recently, the global container freight index showed that the shipping price from China and Southeast Asia to the east coast of North America exceeded US$20,000 per TEU for the first time. On August 2, the figure was still $16,000. According to data from the General Administration of Customs, container export prices have also continued to hit new highs in the past 10 years this year. In May 2021, the price reached US$4,900/ton, an increase of 16% compared to the end of last year and an increase of 43% compared to the same period last year.
Of course, there are also many fabric companies that hold different views on market trends and maintain an optimistic attitude. “Due to the recent impact of the epidemic on processing plants in Southeast Asia, we have developed a number of new customers.” Qian Lijiang, deputy general manager of Zhejiang Shaoxing Yongli Printing and Dyeing Co., Ltd., said that in the first half of the year, more than 30% of the company’s orders came from new customers. , the company’s order volume increased by 40% compared with the same period last year. “I am very confident about the future development of the company.”
Chen Yuxiang, fabric research and development director of Mayia Clothing (Shanghai) Co., Ltd., said that when talking about the future trend of the industry, specific issues require detailed analysis. “From the perspective of fabric classification, as the epidemic continues, the trend of indoor sports becomes more and more intense, and the demand for spandex, nylon and other fabrics used in yoga wear increases, and the market will continue to pick up. In contrast, the market for fabrics required for outdoor sports It will weaken.” He believes that it is difficult to realize the overall recovery of the market, but some fabric categories may usher in a new wave of sales climax in the upcoming September and October.
In addition, some people in the industry believe that this year’s “Golden Nine and Silver Ten” will eventually come, but it will come a little later. He said that sales of many clothing brands will explode during major sporting events. For example, although the Tokyo Olympics has been affected by the epidemic, with the help of the “Olympic effect”, almost all Chinese sports brand products related to the Olympics have exploded in sales. Therefore, the Beijing Winter Olympics to be held early next year may trigger new consumer enthusiasm among people.
MarketThere is still hope for the future
Challenges and opportunities always coexist. Although the overall market demand in August was not satisfactory, it has basically become a consensus in the industry. However, based on current data, most forecasting agencies still hold a “cautiously optimistic” attitude towards the full-year performance of the textile industry. These institutions believe that China’s textile and apparel industry has maintained a steady growth trend in recent years. Compared with developed countries, China’s current per capita clothing consumption is still low and has huge growth potential.
So, how do companies stand out in the fierce market competition?
Pan Shenhong, fabric consultant of Anzheng Fashion Group, pointed out that developing differentiated fabrics is the key. “Nowadays, most fabric companies follow the needs of clothing brands for research and development and production, hoping that the company’s products will be selected by the brands. Little do they know that brands are also looking for differentiated fabrics with unique styles to set off their brand value.” He said, good Fabrics can become the soul of clothing. A good designer can give full play to the characteristics of fabrics, set off the brand’s tone, and enhance brand recognition. Fabrics can even become one of the elements of the brand.
Jiang Rui, a trend researcher at the Fashion Trend Department of the China Women’s Fashion Trend Research Institute, pointed out that “sustainable development” has become my country’s mainstream consumption concept, and consumers are paying more attention to the connotation of sustainability. In the selection of fabric materials, companies can focus on key materials such as linen, cotton and linen, organic cotton, and recycled cotton. From the perspective of fashion trends, durable quality and simple style will complement each other. Fabrics should use more functional products such as antibacterial, anti-wrinkle, and easy care to enhance the practicality of clothing.
“Brands originally used a larger proportion of imported fabrics, but due to factors such as logistics, we are also further observing more domestic fabrics.” Chen Yuxiang pointed out that currently, Chinese fabric companies have outstanding The products also have a good service concept. All it takes is time for more clothing brands to know and accept it. He expects that in the future, Chinese fabrics will gain a larger market share with a more vibrant image and identity. </p
