In 2019, the textile market seems to have come to a watershed. At present, many textile bosses are stifling in the low-end market. It seems to be busy, with lower profits and no profit. This may be the beginning of a big reshuffle.
Printing and dyeing workshop: no work can be done, and it is also stocked
Since June, most dyeing factories have generally reported that the business is bleak, and the orders are insufficient. It coincides with the arrival of the Dragon Boat Festival, and the more common day holiday time in previous years. This year, some printing and dyeing companies have a rare holiday schedule of 2-3 days.
The off-season is like a cloud over the textile printing and dyeing industry. From raw material weaving to printing and dyeing garments, even the roadside pull-up tricycles are waiting for orders.
The original cloth piled up in the dyeing factory workshop is now empty all the time, no one can do it, all stop, and there are few workers in the workshop.
For companies with heavy assets such as dyeing factories, the pressure is obviously much greater. Plants, equipment, and personnel that have been proud of in the past have become intangible burdens.
According to a dyeing and finishing workshop worker: Compared with previous years, this year is a bit idle, and it is a bit uncomfortable for leisure. Although the time is sold to the boss, but there is not much work to do, it is embarrassing to get the salary, and the boss feels uncomfortable. Workers can do nothing, and market conditions are not determined by employees.
A fabric merchandiser said that in the past four to five months, the dyeing factory will be in the factory, asking manufacturers to ship early, especially when the "one cloth is hard to find" last year, it is necessary to queue up in the weaving factory to get goods, cash transactions, and It’s hard to go to the dyeing factory day and night. When the dyeing factory bursts, it is necessary to communicate with the customer to explain, busy group turn, but this year the phenomenon has been greatly eased, it can be said that it rarely appears. The dyeing factory can be used without work, and it can only be used as inventory; the pressure to stop production is greater, and rents, depreciation, wages, etc. are hard to breathe.
The dyeing fees that have been climbing all the way have finally stopped this year. For many textile fabric counterparts, this may be a good news. No more queues to enter the warehouse, cash out of the warehouse! No longer have to look at the dye factory face to do things!
But the layman looks at the excitement, and the insider looks at the doorway! In Xiaobian's view, it is a blessing or a curse, but it is clear to oneself! Although there are only a few printing and dyeing companies on holiday, there will be more and more in the future!
But it passed a signal - the market is not good! The textile business is hard to do!
It’s been past last year, but this year, two warp knitting factories have closed down!
1. Weaving enterprise: I don’t want to say that I make a lot of profits this year, I can stabilize the current plate!
For the weaving factory that is closely related to the printing and dyeing factory, the same pressure is also very large. In the off-season, orders are reduced, but the machine can't stop, the factory can't be closed, and the woven cloth can only be turned into stock. Looking at the increasing inventory, the cloth owner licked his hair. According to the monitored data, the weaving inventory of grey cloth in Shengze area is about 40-41 days for weaving inventory, and production and sales are difficult to level.
For many companies this year, living is good, and you have to go through this stage. “The sales department is still open, employees are still using, rent, water and electricity, employee wages, and no money. If there is a list, the profit will be reduced.” A trader in Shengze said helplessly. "The current market has only been a few months away. It is not hurting for our company. But if we don't change our business or change our business ideas, it may be harder to follow. I don't want to make a lot of profit this year. Just hold the current plate," said the person in charge of a textile factory in Shengze.
2, warp knitting market: big investment encountered a bad market, the two companies can not continue!
According to relevant sources, two warp knitting enterprises have closed down recently. In the past two years, due to the overheating of the warp knitting market, many bosses have crossed the Nuggets. The bosses of the two companies also took a good look at the warp knitting industry in the past two years, but they have encountered a weak market.
Taking Haining as an example, in 2017 and 2018, Haining area enterprises introduced 1300 sets of production equipment KS warp knitting machines, which has increased by more than 20% compared with the original equipment, and the market supply has surged.
However, the terminal demand did not improve as expected. Since the second half of last year, the warp knitting market has experienced overcapacity, the market has gone down, the raw materials have fallen, and the price of grey cloth has fallen even more. In addition, the warp knitting machine has a large capacity per day and consumes a lot of raw materials. The boss needs more capital flow. If you are not careful, it is easy to break the funds. "After last year, but this year, this year, every day is losing money, coupled with the break of funds, can only go bankrupt!" said a person familiar with the matter.
3, traders: the payment is delayed, the days are also sad!
Now that the market is reversed, the number of orders has dropped sharply, and this reduction has gradually been reflected in the trade industry. From the perspective of the downstream procurement side, the traders are also saddened by the changes in payment methods. It is reported that foreign trade customers are generally paying before the end of the second month of the first month of delivery, and even at the end of the month, they will be paid. Nowadays, it is basically two months to start. The payment for three months is normal. Even for 180 days, some domestic customers are not reminded that they will not be able to fight money to a certain extent. lack of.
Customers are not the source of the order. They also have a home. If they don't place an order, they are helpless. It is understood that the competition for orders from customers is also very intense.
Whether it is from garment factories, weaving manufacturers or printing and dyeing enterprises, there will be concerns in the market outlook. The production capacity of peripheral looms will be launched one after another, and the increase in clothing stocks will indicate that the imbalance between supply and demand is intensifying and the market capacity is overcapacity.
A few years ago, textile owners seized market share through large production capacity, but in today's overcapacity market, this path seems to be unworkable. At present, textile companies are facing a situation in which production costs increase, sales are not smooth, and grey cloth stocks increase. The pressure is on the market and the market is experiencing a major reshuffle.
"This year is the worst time in the past ten years. It is also the best time in the next decade!" said a textile friend.
The times are changing, the traditional mode of keeping is unchanged, and death is a matter of time. The premise of mode change is that thinking must change, and it is necessary to dare to break the inherent cognition. Only by seeing this point sooner, it is possible to stand in a favorable position.
Don't wait until the crisis is over, or you can only watch your own "child" slowly die.
With the recent economic downturn and the market becoming saturated, the competition is becoming increasingly fierce. The textile industry has now reached a crossroads of anxiety, but the difficulties and opportunities coexist. The textile industry needs qualitative and breakthrough breakthroughs and rapid comprehensive transformation. Adapt to the market rules of “survival of the fittest”.
The so-called "Thirty years of Hedong, thirty years of Hexi", the textile market is also the same, and the replacement is faster, the hot products may fade in a month or two. The owner of the cloth also said that now that he wants to be eliminated by the market, only continuous innovation and continuous improvement, to make high-end, high-quality fabrics is the right way!