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A Textile Enterprise Southeast Asia Order Suddenly Cancelled! Textile Market Meets "Cold Wave" Again

2020/11/10 0:41:00 0

After the national day, the textile market is full of prosperity, but it seems that the peak season has not lasted for a month, and began to decline significantly. In the market, many textile enterprises failed to catch up with the order tide in October. However, the recent weakening of orders is obvious.

According to a person in charge of a functional fabric production enterprise, they are all making Southeast Asian export orders, but recently, many customer orders have been cancelled suddenly, with a total value of about 1 million yuan. In this year's market, it is not small, but more importantly, most of these orders have already been produced in dyeing factories, which are semi-finished products that cannot be withdrawn. Talking about how to deal with this part of the order, the person in charge said helplessly that he could only make the finished product first and sell it slowly. As to when can sell out really, still be an unknown number!

Downstream fabric trade began to reduce orders, stop the situation, quickly began to feed back to the upstream textile enterprises. Some textile factories in Jiangsu and Zhejiang have begun to cancel orders, reduce workers' working hours and reduce their income. And a lot of boss because stock backlog, fund is limited, begin to default employee salary. Dyeing factory also began to adjust from the early comprehensive warehouse to part of the hot.

In order to revitalize funds, the sale of goods began to reappear

The whole state of the textile industry chain in front of us seems to be very similar to that when we just returned to work at the beginning of the year. The cancellation of orders began to appear, and the operating rate of textile mills began to decline. However, the situation of textile enterprises at the end of the year was obviously different from that at the beginning of the year. After all, there were many places to spend money at the end of the year, such as processing costs, transportation costs, wages, rent, etc All of them put forward the requirements for the working capital of enterprises.

The only way to maintain the normal operation of the enterprise is to maintain the proper inventory. As a result, the sales that have been subsided for several months have begun to appear again, and many of these fabrics are related to the orders cancelled by customers recently, but the more such orders are, the more difficult it is to sell them.

Although this kind of order processing cost is high and through a variety of processes, but it can not be as infinite plasticity as gray cloth. We can only find the corresponding customers with full demand, but this kind of customers is obviously difficult to find. Maybe the customers who want this batch of fabrics do not need wrinkle or coating and other processes, then this batch of fabrics can not be sold, and finally they can only be sold to the merchants who receive and process the fabrics at a low price.

The more obvious the price of fabric will be hit by the Spring Festival. This is obviously not good news for the weaving mills which purchase a large number of raw materials due to the rise in the price of raw materials. It will become very common to lose money or even sell goods at a loss.

Of course, the current situation is similar to that of foreign countries. Because of this, most of the orders affected are foreign trade orders. Does that mean that domestic trade orders can be sustained?

The prospect of domestic trade orders is worrying, and payment collection may become a problem

In fact, the textile market orders are basically all reduced, but the reduction of orders from domestic trade is not as large as that of foreign trade. But it does not mean that the future market of domestic trade orders must be good.

First of all, due to the epidemic situation in Southeast Asia and other places, many European and American garment orders have been transferred to China. At the same time, this part of the fabric processing is also purchased from domestic garment factories. Therefore, it will give a false impression to many textile enterprises that the fabric order they are making is sent to a certain city in China, which must be a domestic trade order. In fact, this part of the fabric will be exported to Europe and America.

Now, due to the second outbreak of the epidemic in Europe and other places, to a certain extent, the confidence of garment enterprises to prepare goods has been hit, and the tide of cancellation of clothing orders is reasonable. Enterprises directly exporting fabrics can communicate with foreign customers directly, and can get the news of order cancellation at the first time. Textile enterprises that send fabrics to domestic garment factories and eventually export clothing often know the cancellation of orders only because there are many intermediate links.

Even some domestic clothing enterprises will not inform the fabric suppliers immediately in order to avoid the responsibility of breach of contract even if they know that the previous order has been cancelled. But through the late inspection to find a variety of fabric problems, and then cancel the order, the responsibility will be attributed to the fabric enterprise.

Therefore, it seems that there are not many cancellations of domestic trade orders. It is likely that the cancellation message has not been completely transmitted. And our clothing industry, which is highly dependent on exports, is naturally unable to compare its capital with previous years in the context of a sluggish global economy and reduced orders. One of the reasons why domestic trade orders have always been criticized is that the payment is in arrears, which may be more obvious this year. If it is difficult to recover the payment for domestic trade orders at the end of the year, it is not meaningless to see things in the dark.

In the case that the overseas epidemic situation has not improved at all, even worse and worse, the cancellation of terminal clothing orders will be inevitable. At present, the order cancellation has appeared again in the textile market, whether it will become a large area of order cancellation in the future can not be ignored. Even if the orders in hand come from China, we need to be careful.