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Grey Cloth Inventory Is Half A Month Higher Than That Of The Same Period Last Year. How To Cope With The Textile Off-Season Ahead?

2019/5/21 10:10:00 13592

Grey Fabric Stock

Recently, Xiaobian learned from friends that the owner of a weaving factory in Jiaxing said that the factory might have to stop production in June, and that the inventory of grey cloth was too high in advance.

In the first half of this year, when the "peak season is not prosperous" has become a reality, the mentality of the whole textile market has been bad. The owners of textile clusters such as Changxin, Haining and Shengze have been giving feedback.

It's too busy for the boss to make the list too late.

Too much leisure is worse. No monk can make money to feed employees.

Coupled with the recent warming of Sino US trade friction, the textile market has caused some panic, and the mentality is even worse. Looking at the increasing number of grey cloth, the list is tardy.


Inventories are half a month higher than the same period last year.


From China's silk net monitoring data, last year, grey fabric inventory was 25 days, and this year's stock in 39 days!

By contrast, inventory has been half full for half a month.


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.

Nei spun's industry and trade integrated enterprise also said: "we always sell well 380T nylon spinning, the price is much worse than last year, now about 3.7, now the list is almost finished.

This year's market gap is mainly due to overcapacity, weaving looms in the external area are hundreds of thousands of products put into operation, and the cake in the market can not be separated.


How can textile enterprises cope with the off-season?


It will take 10 days to enter the June. It can be said that the textile market has really entered the off-season. Although the peak season is not prosperous this year, the boss must be prepared.

The off-season may be lighter than before. So what can textile people do in the off-season?


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 learn more from idle time in the off-season to recharge 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.


afterword


Today, the deterioration of Sino US relations has a certain impact on the Chinese market, while Southeast Asian textile is also accelerating the consumption of Chinese market share, so the export in the second half of this year needs to wait and see.

From the perspective of domestic sales, the blowout of external capacity is the biggest negative factor.

In addition, the cost pressures of cloth boss are also increasing. The outlook for the second half of the year is not very clear. At present, we can only expect this year to be a cold winter. We hope to drive the demand in the second half of this year.

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