The overall performance of the textile industry this year is poor. It is difficult for the entire market to make a big improvement, and it is difficult for market demand to see significant growth in the short term. Half a year has passed, and the textile industry is facing a series of challenges in the face of cost pressures affecting the entire industry and homogeneity issues becoming increasingly fierce competition.
As one of the most common products on the market, gallbladder plays an important role in the production of down jackets. Therefore, the gallbladder market always has its peak season in the second half of every year, and many manufacturers will mass-produce gallbladder in July and August to meet the sales demand in the next three quarters.
However, this year, gallbladder manufacturers have taken measures to reduce production during what should be the peak production season. So, what is the reason for this change in the gallbladder market?
Inventory is overstocked and difficult to sell
Through interviews and research, the editor found that the biggest complaint of textile companies about gall fabrics is: there is too much inventory backlog on the market, making it difficult to promote sales! Since the price of gall cloth is difficult to rise, when the price of raw materials rises, the production cost cannot be recovered by increasing the selling price, resulting in huge losses.
A Danbu factory owner said: “Now half of the machines in our factory are used to produce inventory, and the other half are used for sales. Our inventory has accumulated more than 2 million meters.”
Another person in charge of Danbu Supermarket also said: “The inventory in our factory has been backlogged for two full months.”
As one of the most common and low-end products on the market, gallbladder is inherently low-profit. The demand for products such as 190T and 210T polyester taffeta in the domestic market is getting smaller and smaller. Most of the products are exported to Bangladesh, Vietnam and other places in large quantities to achieve sales targets. However, this export demand is also shrinking this year.
As a result, the pie in the market has become smaller, but inventories are still overstocked, leading to increased competitive pressure from peers, and even many factories have been operating at a loss.
Orders continue to decrease and production capacity decreases.
The so-called “gold, three, and silver” peak seasons have passed, and market demand is obviously weak and “insufficient motivation.” Orders for many products have slowed down significantly, and sales of gallbladder have also begun to slow.
A person in charge of Danbu Supermarket said: “The market has become more deserted after June, and the operating rate of our factory has dropped. Currently, only 75% of the production capacity is in operation.” The boss of another Danbu company also said that the sales volume of Danbu worse and worse.
In the off-season of high inventory and low demand, textile companies face two problems: on the one hand, the warehouse cannot accommodate inventory, and on the other hand, there is a funding problem. The inventory of Danbu has taken up a lot of funds, and it also needs to pay for raw materials, workers’ wages, water and electricity, etc., which requires a lot of working capital.
Some business owners admitted frankly that if the market continues to be sluggish, they will continue to reduce production capacity and reduce inventory. If they continue to produce at full capacity and market demand cannot keep up, they will face tremendous pressure. Therefore, many gallbladder manufacturers are more willing to reduce production capacity and make adjustments during this year’s off-season.
As mentioned at the beginning of the article, gallbladder is an inseparable material for almost every down jacket. Therefore, the situation of the gallbladder market can actually indicate the current situation of the clothing industry. However, now is the time when gallbladder merchants should be stocking up on goods, but factories are starting to reduce production.
This seems to indicate that this year’s market is not as optimistic as people expect. However, it has only been half a year, and the textile industry has always been dependent on the weather. If this year really ushered in a “cold winter”, then the market may turn around.
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