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A textile printing and dyeing factory was forced to suspend production.Orders have plummeted, forcing an early holiday

Printing And Dyeing Mill

The textile market is difficult this year!Difficult!Difficult!

Regardless of other regions or the surrounding areas of Jiangsu and Zhejiang, the textile market is difficult to describe.From last year, the crazy expansion of production capacity, production capacity transfer, blind production, resulting in this year’s overcapacity, weaving factory production and sales difficult to do, the textile market suddenly went down.

Printing And Dyeing Mill

Coupled with the ups and downs of the foreign trade environment, it is difficult to have a direct positive, the textile market lack of upward momentum, enterprises are more or less there is capital pressure.In addition to their own blind expansion, orders are difficult to meet the pressure of enterprises.

Conventional varieties go goods not popular market continuity is not strong

Textile market is not good, clothing manufacturers have also changed the way of placing orders, mostly in small batches, multiple batches, leading to the textile enterprises few large orders, small orders in the majority.Especially in July and August off season, the phenomenon of dumping goods on the market is common, but cruel is, you throw, also not necessarily someone to want.

Conventional varieties have come to a dead end this year. For example, as a necessity of autumn and winter fabrics, it is normal to make three or four million meters of nylon fabric in the past year. However, this year, some enterprises said that the order of nylon silk fabric is close to “cutting in half”, and only less than two million meters have been made so far.In visit investigation, even have the enterprise to say this year ni silk spinning sales for 0.

After entering October, the market began to warm, mainly in autumn and winter fabrics, driving a wave of weaving factory goods, but this wave of market continuity and not long, less than a month, the market has entered the off-season.Negative on the market, production production is still continuing.Receiving orders is difficult, leading to the most direct phenomenon is the grey fabric inventory high!

A Garment Factory In China

Is the weaving market cold?

The boss of a textile factory in Nantong area is going to have a holiday in December. The specific day has not been decided yet.But no matter what day, can not help but sigh, holiday is so early!Although there has been no talk of a holiday in the market, many of Mr Bush’s factories are planning one in December.Earlier, the industry media conducted a small questionnaire survey, the results show that more companies in early January holiday, but December holiday is not a minority.In addition, compared with last year, most manufacturers had a holiday about 15 days before the Spring Festival, while this year some have brought their holiday plans forward to about 30 days.

Most people think that the textile industry is in a bad situation this year, the order quantity has dropped by half, the inventory of weaving factory has reached 43-44 days at the highest, the market is full of dumping information, the profit of manufacturers is generally less than 10%…But now, there is news of the Spring Festival holiday earlier than usual, which means that the textile market is really so depressed?

But the bosses need not fret. An early holiday may not be a bad thing, or a strategy for some businesses to deal with this market.

An early holiday is a relief?

Holiday in advance in previous years is absolutely a bad thing, after all, the textile market is the spring and summer after the year of production season, especially a lot of clothing basically after the year will be on the market.But because the factory has been closed for a long time during the Spring Festival, every day before the Spring Festival is extremely valuable.A big early holiday would be a disaster for textiles waiting for shipment.But this year’s early market holiday may be a relief for many textile workers.

First of all, the market before the year is still quiet, should be the hot spring and summer order production time point, but in fact each textile enterprise received the number of related orders far less than in previous years, most are doing some next autumn and winter orders, it can be said that the recent textile market spring and summer clothing orders is absent.At the clothing sales end, due to the impact of the epidemic at the beginning of the year, there is still a large amount of spring and summer clothing in stock. Next year’s spring and summer market is basically a function of inventory digestion, so there is no need to place this order again, just to increase the inventory.

Second is to reduce production costs, for the vast majority of textile enterprises, even if there is no order generally will not easily stop production holiday, especially all kinds of textile factories.Because a long holiday could easily cause workers to lose their jobs, it would be harder to start production again.No orders but can not stop, the labor, water and electricity, environmental protection and other expenses will greatly increase the operating cost of enterprises.But an early holiday would give textile companies a legitimate reason to stop work, reducing costs and inventories while avoiding a loss of workers.

Finally is to alleviate the order dilemma, in fact, the market now received orders, especially foreign trade orders of textile enterprises are not a few, but now received orders for them is not necessarily a good thing.The first issue is the exchange rate. Most of the orders we are making in the previous quotation were quoted at around the exchange rate of 7, but now THE RMB has risen to 6.5.Secondly, due to the shortage of containers, the freight has risen from several hundred yuan to four or five thousand yuan.In the current state of the market, most companies have seen their profits shrink substantially, or even lose money.Through the industry forced early holiday this force majeure, but the appropriate delay delivery time, to leave room for the decline of the exchange rate, but also to the container to return home for a certain time.Wait until after the year to arrange production, many problems may be solved.

Workers pay larger wages bankrupt bosses unable to repay

For factory workers, the happiest thing in a year is to get a year-end bonus and go home for the Lunar New Year.In the past two years, due to the recession of the textile market, especially due to the epidemic this year, the phenomenon of textile enterprises in many places stopping production and closing down is very common. Not only some small enterprises, but also some well-known enterprises have also fallen into the bankruptcy predicament.

The biggest reason for the failure of enterprises is that the capital chain is broken, which also leads to the failure of many textile enterprises do not have enough money to pay workers wages.

Chinese Rmb

High inventory, loans payment days long lead to capital turnover difficulties

Not only the bosses on the verge of bankruptcy have the problem of tight capital chain, this year it can be said that 70% or 80% of the bosses have encountered the situation of tight capital more or less, especially the foreign trade business accounts for a large number of enterprises.

“In the first half of this year, almost all our foreign trade orders stopped. Money was hard to come by, workers in the factory were paid once every three months and all the hundreds of looms outside the city stopped,” says a manufacturer of peach skin and chunya textiles.

A lot of cloth boss all say, have done so many years, this year is the most difficult year, in addition to profit decrease, high inventory, loan payment days lengthen also is the most important reason that causes textile enterprise capital turnover difficulty.According to the news, a boss of the production of imitation memory in Jiangsu and Zhejiang said that the inventory of each variety of some conventional polyester tafs in their factory this year exceeded 500,000 meters, that is, millions of funds were occupied, the inventory is not realized, that is, there is no working capital, there is no way to buy raw materials, pay wages and so on.

A Chinese Cloth Store Shutting Down

How to relieve the financial pressure?

Therefore, how to relieve the financial pressure in the next step, one is to destock, by reducing the start of production, selling goods at a low price, and the other is to recover the payment in time.Receivables cannot be collected back, the pressure is still on the enterprise.

At present, the market is still relatively low and the trading risk is high, so the decision makers of production should calmly face this situation and ensure the stability of existing customers.Strengthen self immunity, guard against arrogance and rashness, maintain product quality internally, maintain market communication externally, and strengthen production and marketing concepts;Honest and trustworthy, not easy to promise, promised to do;Keep your mind open, communicate actively and learn from each other.In this way, we can transform our capital and manpower into productive forces that can lead to our own changes.

At the end of the day, it’s the lack of demand at the end

This year, not only the textile market “cold”, even the clothing industry has encountered a “bottleneck”.Data from the National Bureau of Statistics shows that since 2020, sales of clothing and cloth have dropped year-on-year to varying degrees.

According to the National Bureau of Statistics, from 2011 to 2017, the retail sales of apparel commodities in China increased year by year, but the growth rate slowed down year by year.In 2017, China’s retail sales of apparel products reached 1036.54 billion yuan, up 1.4% year on year.In 2018, China’s retail sales of apparel products reached 987.04 billion yuan, down 4.8 percent year-on-year, with the first negative growth of apparel sales.By the first half of 2019, the retail sales of apparel products reached 474.97 billion yuan.

In the first three quarters of 2020, China’s garment market demand has improved significantly compared with the initial stage of the epidemic, and the production situation is stable. However, the production economic indicators of the garment industry are still in a significant decline, with the output of garment enterprises above the scale dropping by 10.53% year-on-year to 15.705 billion pieces.

Continued to this year, the epidemic has led to the global economic downturn, consumption intention is not strong, resulting in clothing enterprises this year began a “wave of closure”, even large enterprises are not a few, Jevis closed, HM,ZARA closed some stores in China.

Australia Clothing Industry

Adjust your mindset and earn it next year

In a word, at present, the whole textile industry has formed a downward and upward transmission of the industrial chain. At present, the downstream weaving market lacks momentum, the trading atmosphere is not good, and the pressure of high inventory has not been alleviated. Therefore, manufacturers have a strong intention to destock, which leads to frequent low-price operations and chaotic transactions in the market.Many textile factories with missing orders have begun to prepare to collect the payment for goods for the Spring Festival in advance;Most enterprises will feel the pressure of “hard to earn money”!

The last wave of orders before the year has begun, the hands of the order should be in full swing of the operation, beware of the production line at the end of the year, causing delivery delay;If there is no order, many enterprises will choose to advance the holiday Spring Festival, to adjust their state, the next year!

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Business Director at Shanghai Fumao Clothing Co.,LTD

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