Extend The Payment Cycle, Sell Goods At Low Prices To Seek "Winter"!

Learned: since this year, the textile market is like a "roller coaster", so that many textile enterprise owners suffer. Since the festival to welcome a wave of warming market, the market began to gradually "ebb", a substantial decline.

According to a person in charge of an enterprise, they all make Southeast Asian export orders, but recently, many customer orders have been cancelled suddenly, with a total value of about 1 million yuan.

In this year's market, it is not small, but more importantly, most of these orders have already been produced in dyeing factories, which are semi-finished products that cannot be withdrawn. Talking about how to deal with this part of the order, the person in charge said helplessly that he could only make the finished product first and sell it slowly. As to when can sell out really, still be an unknown number!

At present, the whole state of the textile industry chain seems to be very similar to when it just returned to work at the beginning of the year.

The cancellation of orders began to appear, and the operating rate of textile mills began to decline. However, the situation of textile enterprises at the end of the year was obviously different from that at the beginning of the year. After all, there were many places to spend money at the end of the year, such as processing costs, transportation costs, wages, rent, etc All of them put forward the requirements for the working capital of enterprises.

In order to maintain the normal operation of enterprises, the only way is to properly digest inventory and activate funds. As a result, the sales that have been subsided for several months have begun to appear again, and many of these fabrics are related to the orders cancelled by customers recently, but the more such orders are, the more difficult it is to sell them.

The closer it is to the Spring Festival, the phenomenon of selling goods on the market may become more obvious, and the prices of various fabric or grey fabrics will be hit again. This is obviously not good news for the weaving mills which purchase a large number of raw materials due to the rise in the price of raw materials. It will become very common to lose money or even sell goods at a loss.

Of course, the current textile market is like a roller coaster, which is inseparable from the epidemic situation and political problems abroad.

In addition to inventory pressure, textile enterprises are also faced with a major pain is the return of funds, can not pay wages, can not afford to buy raw materials, serious situation will lead to enterprise paralysis.

Today's textile domestic market does not have much advantage over the foreign trade market, the situation of reduced orders and meager profits still exists, and even has a growing trend.

Because some traders are planning to switch from foreign trade market to domestic trade, which will aggravate the competition in this market. The buyer's market of "supply seriously exceeds demand" is about to take shape, and all textile enterprises may be faced with a situation of "insufficient food" and various price reduction and payment difficulties.

A person in charge of a foreign trade company said: "this year, the payment collection situation of foreign trade merchants is really unsatisfactory. In previous years, the payment cycle was about 2 months, and this year is extended by 1 month to 3 months compared with previous years. With the extension of the payment cycle and the reduction of orders by about half compared with previous years, we really feel a lot of pressure. "

Now, due to the second outbreak of the epidemic in Europe and other places, to a certain extent, the confidence of garment enterprises to prepare goods has been hit, and the tide of cancellation of clothing orders is reasonable. Enterprises directly exporting fabrics can communicate with foreign customers directly, and can get the news of order cancellation at the first time. Textile enterprises that send fabrics to domestic garment factories and eventually export clothing often know about the cancellation of orders because of more intermediate links.

Even some domestic clothing enterprises will not inform the fabric suppliers immediately in order to avoid the responsibility of breach of contract even if they know that the previous order has been cancelled. But through the late inspection to find a variety of fabric problems, and then cancel the order, the responsibility will be attributed to the fabric enterprise.

Therefore, it seems that there are not many cancellations of domestic trade orders. It is likely that the cancellation message has not been completely transmitted. And our clothing industry, which is highly dependent on exports, is naturally unable to compare its capital with previous years in the context of a sluggish global economy and reduced orders.

In the textile industry, not recruiting people is a headache. The types of work in the textile industry are very cheap. They look down on the textile industry, think they are inferior to others and can't bear hardships. Many people have stereotyped the textile industry.

Therefore, even if they are unemployed people, there are still many people who are not willing to hire in textile factories. Even if they have not worked for a few days in the past, they leave because they are not skilled in business or work too hard.

According to a textile boss, "labor is an important factor in the production and operation of enterprises. If the labor cost rises too fast, it will directly reduce the profitability of enterprises, and even lead some small and medium-sized private enterprises with weak competitiveness to face the edge of break even or bankruptcy."

Of course, everything has two sides. In actual production, capital, technology and labor have a certain substitution relationship. When the labor cost is relatively low, enterprises are more inclined to choose labor-intensive production technology to produce and reduce costs. With the rise of human cost, enterprises will be forced to increase R & D investment and production line upgrading, and replace labor with capital or technology, so as to reduce costs and improve production efficiency.

In a word, under the situation that the overseas epidemic situation has not improved at all, and even worse and worse, the cancellation of terminal clothing orders will be inevitable. The most important thing for textile enterprise owners at present is to seek stability and minimize excessive losses in the face of orders that have been cancelled. Close to the end of the year, textile business owners should be more alert to the market dynamics before the year, must not be able to get back to the quick, and lose some certain orders.