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Recently, I have brushed a more influential financial columnist's evaluation of the textile industry: China's textile industry is afraid of generating a comprehensive capacity transfer. The output of cloth has been reduced by a large area, and it has already returned to the output of more than 10 years ago.
In recent years, with the disappearance of the domestic textile industry's labor advantage, the Southeast Asian countries' labor advantage, and the textile industry's trade advantage, some low-value-added businesses in China's textile industry began to accelerate to Southeast Asia-based countries.
In addition, with the start of the domestic environmental protection campaign, many “scatter, chaos, and pollution” enterprises have been eliminated: Wujiang plans to phase out 100,000 looms in 2017-2019; Changxing Jiapu requires all waterjets in the town by 2022. The number of machine households and the number of looms outside the boundary of the industrial platform is less than 50. The company voluntarily renounces the elimination of operations; Jiaxing has eliminated 10,000 looms... The market capacity has been transferred or retired, which has caused the above-mentioned Weichen. The views expressed in finance.
As a matter of fact, the reduction in production will drive the market to continue to improve, but since the fourth quarter of last year, many central and western regions have begun to rise in production capacity, which has had a certain impact on the market. The textile market has experienced 2016, 2017, 2018. After the "three on" market in the year, it began to enter the "downhill." Therefore, some netizens commented that "this year's peak season sales are less than half of the previous year, which is a poor year since the beginning of the industry."
According to the fundamental analysis, the market's quality is generally influenced by the supply side and the demand side. Since the current supply side performance is not satisfactory, what is the demand side? An "old mage" who has been doing textile trade for decades is summarized as follows:
Turning to attack, the terminal brand becomes a conservative
As one of the end customers of the textile fabric industry, the apparel industry is currently under relatively high pressure. For example, in the latest 2018 annual report published by Sote, it is said that due to the influence of the market economy environment and the warm winter weather in the south, the company's brand apparel business is relatively high. There was a slight decrease in the same period of the year, and as the inventory increased, it needs to be adjusted according to changes in the market. The inventory depreciation prepared during the reporting period was 102 million yuan, an increase of 77.51% over the same period of last year. At the same time, with the balance of accounts receivable at the end of the period Growth, the provision for bad debts during the reporting period was 58.12 million yuan, an increase of 54.05% over the same period last year.
Searching for special stock backlogs is not a case. It is reported that some apparel industries as a whole have a weak recovery pattern, and the inventory backlog has led to a decrease in orders this year.
“In fact, there are still so many styles for brand owners, but the single quantity of each style is declining. If the original style is planned to be a single piece of clothing, it will purchase 6,000 pieces, which is relatively conservative.” Specializing in outdoor fabrics Mr. Chen said, “If the market reaction is better, then several styles will be added separately. For the brand, this is safe and efficient, but for our traders, the quantity is small, the batch remains the same, we The cost of labor, time, etc. is still constant, which will inevitably increase costs."
Nowadays, many domestic and foreign brands are striving to seize the new opportunities of online and offline integration, and realize the multi-platform operation of traditional e-commerce, social e-commerce and self-media. This requires the need for brands to speed up product update iterations and continuously optimize product structure. The requirements for fabrics are: fast, less, more, that is, fast delivery, less single quantity, and more batches, resulting in an order that is not as large as before.
Be safe in times, traders but seek a "stable"
In addition to the decline in the demand of brand traders in the entire textile market, the enthusiasm of fabric traders for smashing goods also makes the market mentality more general. "Last year, I was asking for the grey cloth factory to order the goods. This year is the opposite. Many grey cloth bosses will let me get some goods. But I don’t dare to pick up the goods. The second quarter of last year’s daring cloth has not yet After the sale is completed, the demand of the guests is reduced, and I can only be less." Mr. Chen said.
In the near stage, with the impact of foreign grey fabrics on the market, conventional chemical fiber fabrics such as polyester taffeta, Chun Yafang, and Nisifang have performed in general, and the market supply exceeds demand, resulting in the weakening of the trading rights of weaving manufacturers this year. Relatively much better, even so, there are still many traders who dare not rush to buy goods, in addition to concerns about the market outlook, the control of cash flow is more stringent.
In addition, with the increase in raw materials, labor and dyeing fees, many traders said that the profit margin has shrunk. "Now do not seek more money, only to make orders secure, and the collection of goods is satisfactory" has become the voice of many traders.
Many bosses think that this year's "Golden Three Silver Four" is afraid of being yellow. Last year's off-season was made into a peak season. This year's peak season or off-season has made textile owners feel awkward, but this is also the market released into the survival of the fittest, the survival of the fittest. The signal, who reflects the product quickly, low cost, excellent quality can stand out, after all, in recent days, in addition to soaring prices, there has been very little information on price increases.
In the next May, the textile people will continue to die and stick to it! Textile people, come on!
Xuzhou Heping Chemical Fiber Co., Ltd., located in Xuzhou Huaihai Economic Development Zone, provides customers with high-quality and high-quality polypropylene high-strength yarns with the production technology, strict quality control system and high-quality after-sales service. The product performance is good and the price is right, and can support the customized sample. The main products of peaceful production are: polypropylene industrial silk, split film industrial yarn, high-strength polypropylene network wire, polypropylene high-strength wire, polypropylene high-strength wire and other polypropylene products.