“It doesn’t matter whether we accept orders or not. There is no market and no market, and there are not many samples. The inventory is more than 1 million meters more than last month. The factory operating rate is only half. If it continues to get worse, it will even drop. This day is really very sad.” said Mr. Hu, who is mainly engaged in polyester taffeta and pongee fabrics.
Is this market really that bad?
“Our factory’s current operating rate is only 50%, and we have more than 3 million meters of inventory in the warehouse. If the inventory continues to increase, we will definitely have to reduce production. Now it is better to buy something cheaper outside than to produce it ourselves.” A man with 300 looms Mr. Wu said.
Obviously, the pressure faced by the above two textile bosses who own looms is mainly the same problem that most weaving manufacturers have to face since the epidemic. There are orders, but the profits are very low, and some fabrics are even sold below cost. Price, which makes textile bosses very entangled in taking orders.
When it comes to taking orders, it’s actually not bad.
The market is currently in the off-season, and it is normal to not receive orders. However, in fact, the textile boss is not worried about not being able to receive orders. He is more worried about whether to accept the order.
“Actually, our orders are quite good, slightly less than the same period last year. But now is the off-season after all, so the decrease is understandable. There are many people in the market who have stopped production and are on holiday. It’s good that we can still maintain production now.” With 300 units Mr. Wu from Loom said.
“We currently maintain orders for about half a month. We are currently receiving orders sporadically, with a lot of domestic trade orders. Several distinctive recycled fabrics are selling well,” said Mr. Xiao from the spot supermarket.
“It takes about half a month to make it now, which is one-third less than last year. The main reason is that there is more domestic trade and the market is not good. You can’t make money from the cloth you make. It’s not right not to sell it, and it’s not right to sell it. What we have now is all Inventory.” said Mr. Hu, who mainly sells polyester taffeta and pongee.
The above-mentioned textile bosses basically have orders on hand and are producing. Facts have proved that the market is not so useless during the off-season. Although the profits of the textile bosses are very low, most of them still take orders. The problem they are facing is the ups and downs of costs. It is difficult to raise the price of fabrics, and the large number of buyers is a reason to lower prices. Textile bosses are afraid of losing customers, so they can only compromise.
When it comes to buying raw materials, you don’t dare to do it easily.
This year, the price of raw materials has been at a high level due to cost factors. Even if it falls, it will rise immediately. This is probably a routine used by polyester manufacturers to destock, while downstream weaving manufacturers do not dare to buy raw materials easily.
“I bought a little bit when it was cheaper in the past two days, but I didn’t dare to buy more. First, I was afraid that the price of raw materials would fall in the future. Second, I didn’t have much money on hand to stock up on raw materials, but I feel that the prices of raw materials should also rise now. We can’t go up anymore,” said Mr. Hu, who mainly deals in polyester taffeta and pongee fabrics.
“We only purchase products for urgent needs, once every half a month or so, regardless of market conditions.” Mr. Wu, who owns 300 looms, said.
Buy when there is an order, quote the raw material price on the day, and purchase the raw materials for production immediately after placing the order. This is probably the current situation of textile bosses. They dare not buy high-priced raw materials in advance. If you are not careful, you will lose money. The funds are retained for future replacement. Product development, rather than just sticking to old products.
Speaking of innovation, perhaps it is the only way out
In the current epidemic situation, conventional products are no longer reliable. Conventional fabrics such as conventional nylon and pongee are as cheap as what Mr. Wu said above. Mr. Hu, who mainly produces conventional products, also said that this year It doesn’t matter whether you accept the order or not. Anyway, you are losing money.
However, the profits of some new fabrics or niche fabrics are still very good. The profits of some niche fabrics that were popular in the past can reach 200 or 300 yuan per day.
“Our graphene products may be relatively more eye-catching. There are a lot of prototypes now. The prices of conventional products are basically very low.” Mr. Wu, who owns 300 looms, said.
“The sales of several of our distinctive recycled fabrics are pretty good,” said Mr. Xiao from the spot supermarket.
It can be seen that graphene fabrics and recycled fabrics are relatively niche fabrics. The two textile bosses mentioned above said that the current sales of these two fabrics are still good. Although not everyone can produce this kind of fabric, as long as it is The manufacturers who produce them more or less have some orders, and their profits are also very good. The same production…Although Mr. Hu, who sells standard varieties, is an old company in the textile market, although there are orders, the profits are basically non-existent. Therefore, if you want to make money this year, you still have to work hard on niche fabrics, and innovation is indispensable. .
Generally speaking, the current market order situation is not very bad, but many textile bosses are still not very optimistic about the market in the second half of the year. They think that the “Golden Nine and Silver Ten” will be very difficult, but don’t be so absolute. The editor believes that the second half of the year should be ushered in. There will be a wave of market conditions, but it is unlikely that it will be particularly good.
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