Recently, the textile market is not in the peak season, high inventory makes the textile owners headache! Some textile enterprises have begun to reduce the price of inventory by a small margin. Generally speaking, price reduction promotion is still attractive for fabric manufacturers, but the effect of inventory removal is not as good as expected, and the enthusiasm of fabric purchasers is not good. Coupled with the recent warming of Sino-US trade frictions, the textile market has caused a certain panic, many textile owners said that the most important thing in recent years is to reduce inventory!
According to statistics, at present, the weaving stock in Shengze area is about 39-40 days, which has reached the highest level in recent six months. Inventories are increasing and profits are shrinking further, but manufacturers are still afraid to shut down. At present, the operating rate of looms in Shengze area is still around 90%. It seems that in the near future, the weaving inventory will continue to increase.
When the market is good, the weaving factories usually produce according to the order, but when the market is bad, the weaving factories will reduce the order and strengthen the production of conventional cloth. At present, it is in the state of decreasing orders and increasing production of conventional cloth. In a short time, even if the production of conventional cloth is increased in a well-funded factory, the factory will be able to withstand it. However, if the production of conventional cloth is increased in a factory with high capital pressure, it will probably be difficult to operate due to the increase of inventory, and then it will be in the dilemma of shutdown or shutdown.
A factory in Shengze, which specializes in memory imitation, said that since May, it has no lists on hand and its inventory is getting higher and higher. We have 60 looms, and now the stock is more than 800,000 meters, which is already very high. At present, it is still hard to support. Now we have a list to do even if the profit is low. After all, no one really wants to close the factory.
Holiday Reduces Start-up Rate and Relieves Operational Contradictions
Before, I had been talking about the fact that the garment factories in Guangzhou had not started work for five days on May 1st this year. In previous years, most of them had a one-day holiday. It was common for them to work overtime to make clothes. However, compared with last year, this year's situation was a double-edged one, and some factories with poor efficiency were forced to close down.
This phenomenon also occurs in Haining area. It is known that many warp knitting factories in Haining area also have holidays during May 1st, with a minimum of three days and a maximum of five or six days, and the market opening rate also declined to 7-80%.
It is reported that the warp knitting market has performed well for three consecutive years, resulting in the excessive importation of 1300 production equipment KS warp knitting machines in Haining in 2017 and 2018, which is more than 20% higher than the original equipment ownership, the market supply has increased sharply, and the terminal demand has not improved as expected, thus causing the market drag on Haining's warp knitting industry.
At present, many small and medium-sized enterprises have been worried about receivables and increasing inventory. They can only alleviate the contradictions and difficulties between production and operation by reducing profits or operating rate.
Decrease in credit orders by way of repayment
& From the change of cotton yarn sales mode, we can see that the market demand is relatively low. & rdquo; Shandong textile enterprise director said that when the market was bad in 2018, cotton yarn sales were basically on credit. Around the Spring Festival this year, cash settlement has become the main way as demand improves. When the market is most prosperous, the enterprise cotton yarn sales even adopt advance payment method, demand enterprises can not get cotton yarn without first taking out the payment. Now market demand is weakening and cotton yarn sales are on credit again.
& By carefully analyzing the changes of enterprises'orders, we can find that the reduction of long orders is more obvious. & rdquo; Some responsible persons of textile enterprises said that after the recent change in downstream demand, many middlemen and exporters'product sales patterns have also changed greatly. Many middlemen have changed from the original inventory sales mode to the order production sales mode, such as changing the order from long order to short order, or placing orders to textile enterprises according to the order situation of end users, the middlemen basically have no inventory. This weakens the demand for cotton yarn to a certain extent, and also reduces the social stock of cotton yarn.
Analysts believe that the small number of orders received, coupled with a higher start-up rate, textile enterprises will certainly increase the inventory of cotton yarn. On the one hand, it makes it difficult for enterprises to recover funds, and increases the demand for funds. On the other hand, it also increases the financial cost and reduces the direct profitability of products and the comprehensive profitability of enterprises.
How should textile enterprises deal with it?
01 Actively De-Inventory
As we all know, most of the grey cloth sold are in arrears. The liquidity of the manufacturer is not much, and the pressure of capital is still great. As a result, many enterprises will choose to reduce prices and inventory in the off-season. In this way, we can cash in our stocks and reduce the pressure of funds. In addition, the price of raw materials in general off-season will also be reduced accordingly. It is a good strategy to purchase some low-priced raw materials at this time.
02 off-season is a good time for textile enterprises to adjust themselves
In the off-season, orders are reduced, enterprises can timely check and adjust machinery and equipment, introduce some new technology, etc. At the same time, you can also use the off-season relatively leisure time to learn more and recharge yourself. Nowadays, it is very difficult to succeed in business only by honesty. We need to learn more business skills and marketing strategies. We can also timely develop some new products, so that customers have more choices.
Sales volume in peak season and market in off season
This sentence is widely circulated in the sales circle. The same applies in the textile market. The growth of off-season sales obviously does not come from the increment of the market, but from the decrease of the competitors. When the opponent is slackThat is, when the opportunity comes, we can take advantage of this time to visit more customers, but also out of courtesy. After all, customers are God. Visiting more customers will make customers feel that you are a person of interest, so the more likely the single transaction will be concluded.
At present, the textile industry has reached a crossroads of hesitation and anxiety, but difficulties and opportunities coexist. The textile industry needs a breakthrough of qualitative transformation and rapid comprehensive transformation.Only in this way can we adapt to the market rules of & ldquo; survival of the fittest & rdquo.
