In July, Textile Enterprises Are Facing Order Crisis Again, And Need To Control Production Costs To Survive The Off-Season

In 2020, the most difficult task is textile traders. Orders from Europe and the United States are sharply reduced, and some enterprises turn to the Indian market. I didn't expect that India would be hard to do!

March this year was the peak time for foreign trade enterprises to cancel orders, cut orders and break the capital chain. Although the situation has improved, the cruelty of the market continues, and the pressure is also continuing, and most textile enterprises are struggling.

July: textile enterprises face order crisis again

In early May, the epidemic situation in Europe and the United States was alleviated, and countries began to return to work. Some enterprises have received the notice of proofing and sending samples from European and American customers, and some of them have received the actual orders. However, in July, they have entered the traditional textile off-season. In addition, the epidemic situation in European and American countries is still quite severe, and there is a risk of a second outbreak. European and American orders are once again in crisis.

"At the beginning of May, we received an order of 200000 meters, which came from American customers. But now European and American customers are silent. There are still proofs, but there are no actual orders. At present, we still have some loose bills coming from Southeast Asia. " A person in charge of the export enterprise of Tencel and renmian revealed.

In the same way, a trader who does Sifang, Chunya textile and ditaf has no choice but to say: "now it's not only foreign customers, but also domestic garment factories and brand merchants are very cautious about placing orders. It's the off-season market. Now we don't have any orders in hand and are trying to develop new customers."

In the face of such a cold market, textile boss began to take the initiative to sell profits. "In the current market, we are asking customers to raise a little fabric, and the price can be discussed. "Said a cloth owner who specializes in imitation silk.

Export orders are poor, but the domestic market is not optimistic. In recent years, the domestic demand for clothing has been shrinking. In particular, this year, the epidemic has disrupted the production rhythm of garment enterprises, resulting in sales slump, and the situation is very difficult. This can be seen in a series of news events.

On the evening of June 19, La chapel, known as "China's version of Zara" and the first a + H-share listed clothing company in China, lashabel Clothing Co., Ltd., a wholly-owned subsidiary, planned to sell its 100% equity of Taicang Xiawei warehousing Co., Ltd. to Shanghai Shihuai Logistics Co., Ltd. for a transaction consideration of about 725 million yuan.

Recently, a clothing factory in Haizhu District of Guangzhou ran away. The boss left a letter. The clothing factory was moved out overnight. The wages of 15 workers were not paid, and the boss of the clothing factory borrowed 150000 yuan from the employees of the factory!

The lack of terminal orders and the outbreak of overcapacity

The decline of domestic and foreign trade orders led to the re fermentation of the contradiction of overcapacity. After the great leap forward of the previous two years, conventional products are blooming everywhere in the market, but the downstream terminal demand is shrinking. In July, the production and sales of textile enterprises are difficult to level, and the inventory shows signs of rising. According to the monitoring data of China silk capital network, the inventory of Jiangsu and Zhejiang grey fabrics is about 45 days, reaching the highest level in nearly three years!

With the traditional off-season and the coming high-temperature season, boss Bu is more and more willing to reduce production and have a holiday. At present, the enterprises who drink porridge are more than those who eat meat, and most of them only maintain small and scattered orders. "The demand is not good, plus the raw materials have been falling, so far this year, our grey cloth price has generally dropped by 3 cents, and the selling price is even lower and frightening. How to calculate it is a loss." There are more than 100 weaving mills in charge. If we continue to produce blindly, the inventory will be higher and higher, and the working capital will be occupied more and more. In this case, lowering the operating hours and taking a holiday have become the first choice of many bosses.

"At present, many manufacturers are in a wait-and-see state, including us. Now we have stopped half of the machines, and the workers also take a week off in turn every month. If the manufacturers in the surrounding areas have a holiday directly, we will also have a holiday. The inventory is too high, the price of raw materials is not stable, it will depreciate if it is not done well. If the market continues to weaken, I feel that many manufacturers will have a holiday. " The manager of a factory with more than 70 looms revealed.