After entering 6 months, the market began to gradually weaken, the number of orders decreased, and weaving companies began to gradually reduce the operating rate of looms; but on the other hand, 6 span>Month14 A wave of large-scale promotions at polyester factories brought the average polyester production and sales to the highest point in the year.
Is the current market situation good or bad?
Exports fall
According to the latest data from the General Administration of Customs of China, in 2023 May, my country’s textile and clothing export volume was253.2 billion US dollars, a year-on-year decrease of 13.12%.
The global economic environment continues to be turbulent, and traditional market demand in Europe and the United States has shrunk significantly. Although there are supplements from RCEP and the Belt and Road Initiative, they have only reduced the degree of oversupply.
At the same time, due to the low overall economic prosperity, residents’ expectations for future income have declined, leading to a cautious consumption mentality. Domestic demand has also grown relatively slowly, unable to make up for the lack of external demand.
The phenomenon of oversupply has led to serious homogeneous competition in the market and a large overcapacity of conventional products, which has also triggered a change in market mentality.
Low price is the last word
There are three key points in selling cloth in 2023 – cheap, cheap, and still cheap. This is determined by today’s buyer’s market. In the face of cheap prices, sometimes quality doesn’t work.
Mr. Li, who produces spandex-coated yarn, said: “The customer asked us for a batch of milk yarn. The cost of milk yarn varies greatly depending on the quality of the product. We have higher quality requirements, so the quotation is relatively high. However, the customer feels that we I was trying to rip off customers and ended up losing the order.”
The same is true for the imitation silk that was hot selling not long ago. Although it sells very well, there are many people making it. If the price is too high, no one will buy it. But as long as it is cheap enough, even if the quality is low, it can attract people.
Mr. Zhang, the person in charge of a textile company that produces imitation silk, said: “We had a batch of high-twisted tangled hemp that had been stored for a long time. It’s not that no one wants this fabric, but the price quoted by others on the market is too low. Some bookers The weight is lower, but the price is a few cents cheaper than other stores, so it can still attract a lot of customers.”
Production capacity has become a pressure
However, there is currently a bottleneck in the demand for conventional products, which has resulted in many large companies needing to bear greater sales pressure than before.
Manager Wang is the regional head of a large textile company. His factory has nearly 5,000 looms. He said: “The demand for foreign trade has shrunk seriously this year. The number of orders placed by customers has decreased, but new customers are more difficult to find. Now the sunk cost of 5,000 machines is a bit high, and they cannot be sold at full production, and there is too much inventory. , so we can only lower the startup rate a little and wait for this period of time to pass.”
In order to absorb production capacity, large-scale manufacturers often have relatively fixed cooperative customers. However, when these customers can no longer place orders stably due to various reasons, it is often more difficult to find replacement customers than small businesses.
Market highlights still exist
Although the general environment is not good, market confidence has not been lost.
On June 14, the average daily production and sales of polyester factories reached 386.5%, reaching the highest point during the year. Although the polyester factory had a promotion that day, after 2020 , it can be said that the promotion of the polyester factory has become a commonplace, but it is very rare that the effect is as good as this one.
On the one hand, this is because weaving companies are not very enthusiastic about buying silk after entering the 6 months, polyester production and sales continue to be sluggish, and weaving companies’ raw material inventories are not high, and they have a need to replenish their inventories; On the other hand, there are still some companies in the market that are doing very well in receiving orders and have demand for raw materials, so they are replenishing their stocks at bargain prices.
In the fierce competition, some textile companies have chosen to find new ways and actively embrace emerging supply chain models such as spot supermarkets and online sales.
Manager Huang, the person in charge of a certain fabric spot supermarket, said: “The rise of online shopping has also popularized the fabric spot supermarket and the spot quick response model. This year, our orders have not been interrupted, especially recently 618, the sales volume is growing rapidly.”
A boss Li who used to be mainly engaged in foreign trade also said: “We used to be100% foreign trade enterprises, now we50%e-commerce, 50%foreign trade. ”
Although dragged down by the global economic situation, the domestic textile market environment is relatively average, resulting in low-price competition. But textile companies are not sitting still. Some rolling technologies and some rolling channels are constantly improving themselves. I believe that when this downturn in the market passes, these “crown king” textile companies will lead a huge wave.
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