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“Golden September and Silver 10” is the traditional sales season of the textile industry. However, recently, when the reporter visited the company, it was found that the fabric market in this year was not prosperous. What is the reason for this year's market compared with previous years? How should fabric companies break through the sales bottleneck?

Market downturn

Since the third quarter of this year, the Chinese fabric market has frequently experienced “cooling down” signals such as slower product price increases, lower transaction volumes, and revolving production orders.

As a "barometer" for judging industrial changes, the "China·Keqiao Textile Index" shows that in September and October this year, the total corporate climate index fell by 17.93% and 18.22% respectively. According to the report, during the period from September to October, the north-south merchants of popular dyed fabrics fell in the ring, and the traditional marketing was still dull. The spot transaction of autumn running products was retracted from the previous month, and the orders for dyed fabrics in early winter were insufficient. After the contraction, the production orders of the enterprises showed a retreat. Some of the textile printing and dyeing enterprises saw a partial decline in the operating rate, and the production and sales contracted back. The output of some enterprises in some printing and dyeing areas in Zhejiang declined slightly.

Zhejiang Lanao Textile Co., Ltd. mainly produces and sells polyester filament yarn and chemical fiber fabrics. The company originally had 12 sets of texturing machines to operate without interruption, but since September 1, it has reduced production by about 2/3. Most of the employees also started their holidays. "No way, the silk can not be sold, the inventory is a lot more, can only be so." Chairman Tu Yuexin frowned.

In addition to Zhejiang, the cities that have spread the “cooling tide” include fabric clusters in Jiangsu, Guangdong and Fujian.

According to data from the Changshu polyester yarn market in Jiangsu Province, from mid-September to the end of October, the market for polyester filament and nylon yarns was not good, and prices continued to fall. "Since September, FDY and FDY have been bright, and the prices of DTY products have basically declined. They have broken the trend of stable and small increase, and the market demand is small." Market observers said.

"At present, the company is in a semi-stop state. According to this situation, I am afraid that it will be changed." A person in charge of the Guangdong Chaoshan Printing and Dyeing Enterprise, who asked not to be named, said with a smile that this year, the company has been in a semi-stop state and entered the traditional peak season. After that, the basic state of the company has not changed, and some companies in the surrounding area have such a situation.

"We have predicted that sales in the second half of this year should be higher than in previous years, but the actual situation is not satisfactory, and I barely hit a 'flat hand.'" Huang Xingxing, chairman of Xiangxing (China) Group, revealed to reporters: "We are Many long-term partners of sports and leisure brands at home and abroad, these companies usually purchase stable. For example, last year, we only had about 24 million meters of orders for Decathlon, but this year there has been a reduction in orders, which is about 20 million meters. ."

Multi-party problem

As the saying goes: "Frozen three feet, not a cold day." At present, the entire fabric industry is facing many challenges. The reporter of "China Textile News" summarized the reasons for the company's relevant responsible persons and industry experts to cause the industry's peak season to be weak.

First of all, product homogeneity is serious and it is difficult to meet individual needs. Many industry experts pointed out that the current homogenization of fabrics in the fabric market is serious. Some small and medium-sized fabric companies lack innovation spirit and imitate the same type of products, resulting in less differentiation of products across the industry. Nowadays, the “post-90s” and “00s” that have grown up in the age of personalization have gradually become consumers. They prefer personal design and have higher requirements for product selection. Therefore, the proportion of foreign fabrics selected by apparel companies Also increased.

Second, raw material prices have risen and production costs have skyrocketed. Due to the skyrocketing prices of raw materials such as dyes and yarns, the cost of fabric companies has also increased. At the same time, due to the market's full instability, fabric companies are afraid to mass-produce, and even orders will be pushed off. “In the second half of June, the foreign trade orders were signed. At that time, the raw materials did not rise so badly. Now they have risen so much, they can only sell at the original price, and they can’t keep it.” Zhou Genrong, Chairman of Changxing Rongwang Textile Co., Ltd. A look of helplessness. Yang Wenqin, general manager of Huzhou Haoming Textile Co., Ltd. also calculated an account: "The cloth with a size of 300 grams has to produce more than 90,000 meters per day. The previous profit was only 0.2 yuan / meter. Now the raw materials have risen by 1 yuan / M, but it will lose 0.8 yuan / m." So they communicated with the customer, the customer is willing to increase the price of 0.2 yuan / m, so that you can lose less. But despite this, companies still have to lose more than 70,000 yuan a day.

Again, the price war is normalized, weakening the peak season effect. “The early Keqiao large-scale printing and dyeing factory was inundated, and the supplier's explosive growth increased, which led to frequent price wars in Keqiao fabrics, especially in the category of chemical fiber fabrics. The same fabric, no matter how much it was quoted in Shengze, once it arrived at Keqiao The psychological price of the guests will automatically drop by 2 yuan." The relevant person in charge of a woven fabric company in Keqiao said: "The consequence of the price war is to make the promotion form a normal state, which will inevitably weaken the effect of entering the peak season."

Fourth, the downstream clusters have been rectified and the fabric supply exceeds demand. At present, the garment processing market is also undergoing a cage change, including Hangzhou Qiaosi Town, one of the largest garment production bases in China, and Huzhou Zhili Children's Wear Town, which are undergoing remediation of scattered pollution, and will eliminate most of the clothing in the future. Plus workshops, and most of these small companies supply Taobao and other e-commerce platforms, and the suppliers of these enterprises are mainly low-end fabric companies, so the rectification of clothing plus workshops will cause short-term terminal supply and demand imbalance.

In addition, it is worth noting that at present, the phenomenon of recruitment of workers in fabrics is widespread, and the problem of talent flow is serious. When the reporters are trying to find out the bottom of the fabrics, they hear almost all the voices of “difficulty in employment” and “unable to work in the peak season”. "The wages of workers must be raised every year, plus social security and various expenses. It will cost 5,000 to 6,000 yuan per person in one month, but even if wages rise, there are still major problems in recruiting." Huang Yijun, director of the office and director of the enterprise service center, pointed out: "Because most fabric companies have a single production, long time and great intensity, it is no longer easy to attract young people." Huang Zaixing also said that in order to stabilize employees The company recruits employees to expand their skills as much as possible, so that employees become versatile, but they often face the problem of employee turnover, and the phenomenon of brain drain is common.

Go against the trend, innovation is the first

However, while the entire fabric industry is experiencing a cold winter, there are still some companies whose sales and profits continue to rise.

Recently, Zhejiang Taihua New Materials Co., Ltd. released the "Third Quarterly Report of 2018", showing that the company's revenue increased by 9.7% year-on-year, the net profit of the mother returned by 47.9%, and the company's financial expenses decreased by 94.3% year-on-year. it is good.

“Because the company has a complete nylon textile industrial chain of nylon filament, nylon grey fabric and nylon finished fabric, and the products at the back end of the industrial chain, such as nylon grey fabric and nylon finished fabric, have a higher income ratio and higher gross profit margin. Effectively reduce the impact of fluctuations in the upstream petrochemical industry on the company's operating performance, and further enhance the company's ability to resist industry risks and profitability." Taihua New Materials said in the announcement.

Recently, Xinshen Group Co., Ltd. has launched “AB Face” linen fabrics in the industry, and has received good market feedback once it is launched. Li Jianfeng, chairman of the group, believes that this is expected: “Xin Shen has always dared to innovate. This year, the company officially entered the market for infants, the elderly and the maternity products, using natural fabrics made from flax fibers, with green and low carbon. The characteristics of this kind of consumers bring a new simple, individual, comfortable and healthy linen lifestyle, which is also a direction for the future development of Xinshen Flax Industry."

Among the companies with good sales, there are also many small and medium-sized enterprises that are outstanding. Shaoxing Buting Textile Co., Ltd. is a small company with 70 employees. It specializes in the sale of artificial cotton cloth. Last year, it exported 100 million US dollars and was ranked in the top 3 of Keqiao's foreign trade list. The company's general manager Qian Shuijiang revealed that in the past few years, the development of Buting Textile has progressed steadily, and the export volume has increased at a rate of 10% per year. “The company needs to launch at least 20 new patterns every day to meet the needs of customers. The traditional order model is for customers to find samples, we develop according to customer requirements, and our current spot model is based on our years of market experience to customers. Provide new products to guide customers' needs." (Polypropylene high strength wire)

For fabric companies, the current market is uneven. The sales of existing enterprises are sluggish, and the sales of enterprises are not bad. For fabric companies that have neither innovative nor successful marketing strategies, they are undoubtedly entering the winter. For companies facing the market with technical strategies and good market strategies, the market environment is not good. It is getting cold, but it is still expected to become the cold plum of the top frost. (polypropylene high strength wire)

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