In the near stage, the textile market is not prosperous in the peak season, and the high inventory makes the textile boss have a headache! Some textile companies have begun to cut prices to a small extent. In general, price reduction promotion is still attractive to fabric manufacturers, but the effect of destocking is not as good as expected, and fabric buyers are not motivated. Coupled with the recent increase in trade friction between China and the United States, the textile market has caused some panic. Many textile owners say that the most important thing in recent days is to reduce inventory!

According to statistics, the weaving inventory in Shengze area is currently around 39-40 days, which has reached a high level in the past six months. Inventories are increasing and profits are further narrowing, but manufacturers still dare not stop. At present, the operating rate of looms in Shengze area remains at around 90%. It seems that in the near future, weaving stocks will continue to increase.

When the market is good, the weaving factory will produce more orders, and when the market is not good, the weaving factory will reduce the order and strengthen the production of conventional cloth. At present, it is in a state of reduced orders and increased production of conventional cloth. In a well-funded factory, even if the production of conventional cloth is increased in a short period of time, the factory can withstand it. The factory with large capital pressure increases the production of conventional cloth. It is likely that the operation will increase due to the increase of inventory, and then it will fall into a downtime or shut down the factory. .

Holidays reduce operating rate and ease business conflicts

Before, I have been talking about the garment factories in Guangzhou area. There are no signs of starting work for five days this year. In the past year, most of them only had one day holiday. It is common to work overtime to make clothes, but this year’s scene and last year’s scene Compared with the two days, some factories with poor performance were forced to shut down.

This phenomenon is also staged in Haining. It is understood that many warp knitting factories in Haining during the May 1 period have also been put on leave, ranging from three days to five or six days, and the market operating rate has also dropped to 7-8 percent. .

It is reported that due to the good performance of the warp knitting market for three consecutive years, the companies in Haining in the year of 2017 and 2018 have introduced 1,300 sets of production equipment KS warp knitting machines, which has increased by more than 20% compared with the original equipment. The surge in demand and terminal demand did not improve as expected, which led to Haining’s warp knitting industry being dragged down by the market.

At present, many small and medium-sized enterprises have been worried about receivables and increasing inventory, and can only alleviate the contradiction and difficulties of current production and operation by reducing profits or operating rates.

Reimbursement method

"A careful analysis of the changes in corporate orders can be found that the reduction of long orders is more obvious." Some textile companies have said that after the downstream demand has deteriorated, the sales patterns of many middlemen and exporters have also changed. . Many middlemen have changed from the original inventory sales model to the order production and sales model, such as changing the order from long to short, or ordering the textile company according to the order of the end user, the middleman basically has no inventory. This has weakened the demand for cotton yarn to a certain extent, and also reduced the social inventory of cotton yarn.

Analysts believe that the number of orders received, coupled with higher operating rates, cotton stocks of textile enterprises will certainly increase. In this respect, the recovery of corporate funds is difficult, and the demand for funds is increased. On the other hand, the financial costs are increased, and the direct profit of products and the comprehensive profitability of enterprises are reduced.

How should textile companies respond?

01 Active destocking

We all know that most of the grey fabrics sold are arrears. The liquidity of the manufacturers is not much, and the financial pressure is still very large. As a result, many companies will choose to cut prices and reduce inventory during the off-season. This can be used to cash in stocks and reduce capital pressure. In addition, the price of raw materials in the off-season will be correspondingly reduced. It is also a good strategy to purchase some low-priced raw materials at this time.

02 Low season is a good time for internal adjustment of textile enterprises

In the off-season, orders are reduced, companies can check and adjust equipment and introduce new technologies in a timely manner. At the same time, you can also use the off-season to learn more about leisure time and charge yourself. It is difficult to achieve success by doing business now, and it is necessary to learn more business skills and marketing strategies. It is also possible to develop some new products in a timely manner so that customers have more choices.

03 sales in the peak season, market in the off-season

This sentence is widely circulated in the sales world. The same applies to the textile market. The increase in sales in the off-season will obviously not come from the increase in the market, but from the reduction of the opponent. When the opponent is lax, it is the moment when the opportunity comes. It is also polite to visit the customer during this time. After all, the customer is God, visit the customer more, and let the customer feel that you are a thoughtful person, then the order is filled. The greater the possibility.

The textile industry has now reached a crossroads of anxiety, but the dilemma and opportunities coexist. The textile industry needs qualitative and qualitative breakthroughs and rapid comprehensive transformation to adapt to the market rules of “survival of the fittest”.

Hai'an County Qinfeng Chemical Fiber Co., Ltd. relies on the professional power of single stream, the front-end quality inspection system and perfect quality inspection system ranks among the high-quality enterprise queues in the industry, specializing in the production of short pp, polypropylene staple fiber, polyester staple fiber and Functional polypropylene staple fiber, etc.