Just now, a piece of information about “Low Price Sale of Gray Cloth + Galile Cloth” appeared in the circle of friends.
Although it is not uncommon to sell goods at low prices in the textile market, the strange thing is that as early as the end of February, this textile company had already released the information of “sale of spot gray fabrics at low prices” (falling below 1 yuan/meter, millions The spot goods of Yumi are sold at super low prices…), “Gold, Three and Silver” should be the traditional peak season for the textile industry. It is really unbelievable that this company has done this kind of operation again!
Stable but declining, the price is not the lowest, only lower
By comparing the two sales, we found that the overall quantity of the two sales was basically the same, but the price this time was lower and the varieties were more widely covered. Taking 210T 78g polyester taffeta as an example, the last time (February 23) the price was 0.93 yuan/meter, the quantity was 100,000 meters, and this time (April 12) the price was 0.9 yuan/meter , the quantity is still 100,000 meters.
If the last selling price can be regarded as a “street stall price”, seeing this time’s quotation, one can’t help but sigh, “There is no lowest, only lower.” Even the onlookers couldn’t help but ask, “How much is this kind of price?” Is the price real?” These doubtful comments are enough to prove that the price is unimaginably low.
Looking behind the phenomenon of selling goods, on the one hand, it may be that corporate orders are not enough to maintain operations, and on the other hand, there may be problems with capital turnover. No matter what the reason is, once textile companies start selling goods, they will be the first to sacrifice their profit margins and attract customers to take orders at relatively low prices. However, if a company chooses to sell goods, it means losing the initiative, and negotiations can easily fall into a passive situation. It is not uncommon for customers to lower the price again during the negotiation period.
At present, it seems that even if the raw material end has increased significantly, the price of gray fabrics remains unchanged. Even in the circle of friends, you can see the information of price reduction and sales, and the price offered makes you feel that you will not stop until you sell all the goods. In this era of involution, it may no longer be easy to increase prices.
If orders perform poorly, the market may stall early.
During the market visit, many textile bosses said that this market situation may last for about one month. Some pessimists said that the textile market had already cooled down in April.
According to common practice, the textile industry “depends on domestic demand three-quarters and foreign trade seven-cents.” Since the beginning of this year, the textile foreign trade market has been under pressure, facing challenges such as weak demand in European and American markets and intensifying international competition. Judging from the orders received by enterprises, during the “Golden Three” period, textile enterprises focusing on foreign trade did not receive a large number of orders. Especially since the end of the exhibition, the number of people sampling and making inquiries has only increased, and the actual order placement has not seen a significant improvement. Looking back at the domestic sales market, after entering March, domestic sales orders ushered in a short-term small peak. However, as orders were gradually completed and delivered, the growth of subsequent orders was weak, and the originally hot market began to show a downward trend.
At the time of the alternation of “Gold, Three, Silver and Four”, the price of raw materials has experienced a “seven consecutive rises”. However, the downstream refuses to pay for the price increase. As an intermediate link, weaving enterprises are forced to continuously compress their profit margins, which in turn leads to production Motivation keeps decreasing. According to monitoring data from Silkdu.com, the operating rate of weaving enterprises in the sample fell again this week. As of April 14, the operating rate dropped by 1.4% from last week to 72.8%.
In an increasingly transparent market environment, price wars are taking place all the time in the “involved” textile market. The so-called traditional peak season is no longer as lively as it used to be. The trend of polarization among enterprises has become more obvious, and the situation of enterprises lacking orders is also getting worse. It’s getting harder.
Postscript:
From crazy expansion of production capacity → production capacity transfer → blind production, the overcapacity situation in the textile industry is getting worse, and the supply and demand relationship is also showing a deteriorating trend under the increasing inventory. Low prices are not scary, but what is scary is that even after prices hit rock bottom, there is still no one to take over. How many rounds of sales regardless of cost can today’s textile companies endure?
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