At The Crossroads Of The Textile Industry, Choose To Stick To The New Or Outlet?

At the recent stage, the textile market is not prosperous, and the high inventory makes the textile boss headache.

Some textile enterprises have started a small price reduction to inventory. Generally speaking, price promotions are still attractive to fabric merchants, but the effect of inventory is not as good as expected, and fabric buyers are not enthusiastic.

Coupled with the recent warming of Sino US trade friction, the textile market has caused some panic. Many textile bosses say that the most important thing is to reduce inventory.

According to statistics, at present, the Shengze area weaving library exists about 39-40 days, and has reached the highest in nearly half a year.

Inventory is increasing and profits are further reduced, but manufacturers are still afraid to stop. At present, the loom operating rate in Shengze is still around 90%. It seems that the weaving inventory will continue to increase in the near future.

When the market is good, the weaving factories will produce more orders. When the market is not good, the Loom factory will reduce orders and strengthen the production of regular cloth.

At present, it is in a state of decreasing orders and increasing routine cloth production.

In the short term, even if the factory is able to afford the production of regular cloth, the factories that are well funded can increase the production of conventional cloth, which is likely to result in difficulties in operation due to the increase in inventory and then fall into a downtime or close down.

A factory specializing in imitation memory in Shengze says that since May, there has been no single list and stock is getting higher and higher.

We have 60 looms, now the stock is more than 80 meters, and it is already very high. At present, it is still hard to support. Now there is a list even if the profit is low. After all, no one wants to really close the factory.

Vacation to reduce operating rate and ease operational contradictions

Before, we have been talking about the garment factories in Guangzhou area. This year's May Day holiday has not yet been started for five days. In recent years, most of them have been on a one day holiday. It is common for them to work overtime to make clothes. But this year's scene is compared with last year.

This phenomenon is also staged in the Haining area. It is understood that during the May 1 period, many warp knitting factories in Haining also released fake products, with less than three days and more than five or six days, and the market operating rate also dropped to 7-8.

It is learnt that, due to the good performance of warp knitting for 3 years in a row, the enterprises in Haining in 2017 and 2018 introduced over 1300 production equipment, KS warp knitting machine, which has increased by more than 20% over the original equipment, and the supply of the market has increased sharply. However, the demand for terminal has not improved as expected, which has led to Haining's warp knitting industry being dragged down by the market.

At present, many small and medium-sized enterprises are worried about receivables and increasing inventories. They can only alleviate the contradictions and difficulties in current production and operation by reducing profits or operating rates.

Reduction in credit order

"From the change of cotton yarn sales, we can see that the market demand is relatively low."

The head of a textile enterprise in Shandong said that when the market was bad in 2018, the sale of cotton yarn was basically based on credit sales.

Before and after the Spring Festival this year, as demand becomes better, cash settlement becomes the main way.

When the market is the hottest, the cotton yarn sales of enterprises even adopt the way of prepayment. The enterprises do not get the cotton yarn without the first payment.

Now that market demand is weakening, cotton yarn sales are starting to sell again.

"Careful analysis of changes in enterprise orders can be found that the phenomenon of long orders reduction is more obvious."

Some textile enterprises responsible person said that after the recent downstream demand has become worse, many intermediaries and exporters' product sales patterns have also changed greatly.

Many middlemen have changed from the original inventory sale mode to the order production and sales mode. For example, the order is changed from long list to short list, or orders are placed to the textile enterprises according to the order of the end users, and the intermediaries basically have no stock.

To a certain extent, this has weakened the demand for cotton yarn and reduced the social inventory of cotton yarn.

Analysts believe that the number of orders received, plus a higher rate of start-up, textile enterprises will definitely increase the stock of cotton yarn.

This aspect has made it difficult for enterprises to recover capital, increased the demand for capital, and on the other hand increased the financial cost, thus reducing the direct profit of products and the comprehensive profitability of enterprises.

How should textile enterprises deal with it?

01 actively go to stock

As we all know, most of the grey cloth sold is in arrears, and there is not much liquidity on the hands of manufacturers, and the pressure of funds is still great.

As a result, many enterprises will choose to reduce prices and reduce inventories in the off-season.

This can reduce inventory pressure and reduce cash pressure.

In addition, the prices of raw materials will also decrease in the off-season. Purchasing some low price raw materials at this time will be a good strategy.

02 the off-season is a good time for textile enterprises to adjust internally.

During the off-season, orders are reduced, and enterprises can check and adjust machine equipment and introduce new technologies timely.

At the same time, you can also use the off season more leisure time to learn and learn, to charge yourself.

Nowadays, it is difficult to succeed in business only by honesty, but also need to learn more business skills and marketing strategies.

Some new products can also be developed timely, so that customers can have more choices.

03 make sales in peak season, and do market in off season.

This phrase is widely circulated in the sales sector.

It is also applicable in the textile market.

The growth of sales in the off-season will not come from the increase of the market, but rather from the reduction of the competitors.

When your opponent is slack, it is the opportunity to come and visit more customers during this period of time. It is out of courtesy. After all, customers are God, visiting customers more often, and making customers feel that you are a conscientious person, so the possibility of a single deal is greater.

The textile industry has arrived at a crossroads of anxiety and anxiety at present, but the plight and opportunity coexist. The textile industry needs a qualitative breakthrough and a rapid comprehensive pformation so as to adapt to the market rule of "survival of the fittest".