With the intensification of the new crown epidemic overseas, the economies of many countries are on the verge of collapse, and textile companies have ushered in the largest number of withdrawals and abandonment in history. On March 21, a circle of friends flowed out such a screenshot. Some netizens said that "One of the world's largest manufacturers of cylindrical knitted fabrics, Futian, canceled 4,500 tons of orders a day, including their hundreds of tons." The industry was chilling.

Some netizens broke the news that the cloth was already on the machine, but it was cancelled, and the loss was really not small.

"The order quantity and color have already been negotiated, and it is said that it can be done, but it is not a contract. We rushed it for two weeks before sending the contract. Without a contract, we would not dare to proceed, and waste two Week time. And the customer was so hesitant about the next contract, we are also very nervous now, fearing that half of the order is cancelled, gray fabrics, dyeing costs are wasted, and a lot of inventory is added. "A textile trader said helplessly.

There are also some factories that have issued orders to customers.

With the strengthening of control measures in many countries, including measures such as curfews, travel restrictions, border closures, and suspension of public transportation services, the aim is to curb the spread of the virus. The entity is damaged, many countries exercise force majeure and respond, and foreign trade exports are lamented. Withdrawal of orders by textile trading companies is becoming more common, and export companies are facing severe tests. With the spread of the epidemic globally, the demand for the world's major textile and apparel markets will decline, and the affected market will not be as simple as that of the United States last year, and the problem of overcapacity will become more prominent.

At present, the textile market is in a low season. It is already the consensus of the vast majority of people. Of course, this situation cannot be separated from the impact of the pneumonia epidemic and the weakening global economic situation. There is no clear answer for how long this effect can last. Now there is a panic in the market, and no one knows when their customers will return the order.

Considering that the market will be severe in the later stage, some printing and dyeing factories no longer consider recruiting new employees.

According to feedback from textile and apparel companies in Guangdong, Jiangsu, Zhejiang, Shandong and other places, in 2020 spring clothing was heavily stocked due to the epidemic, logistics and market closures. Some manufacturers sold less than 20% of the plan, accounting for large amounts of funds. At present, the biggest variable is the autumn and winter orders. Domestic and foreign trade orders are like "hot potato" (generally, the cycle is longer, and the amount and amount are larger). Enterprises are facing the risk of bankruptcy, otherwise they may fall into the dilemma of shutdown and production from April to May.

I ca n’t stand it anymore, and textile companies are fighting a "price war"!

In the case of high inventory and low demand, textile bosses will generally face inventory pressure and financial pressure. Yarns and grey fabrics in the warehouse have already occupied a lot of funds, and manual wages, hydropower, and rent must be paid in cash. In this case, if the product is not realized, unless there is a big business and there is no pressure on capital, the company will not be able to support it, and sufficient cash can ensure the healthy operation of the company.

With the suppression of these two mountains, the phenomenon of dumping goods on the market has been one after another. After visiting the market, many companies have said that customers have recently lowered their prices more frequently, often arguing over a dime. But now that the domestic and foreign trade demand is shrinking, the price can be given to the old customers. Sometimes, even at a loss, in order to retain customers and long-term cooperation in the future, they can only eat Huanglian dumbly.

"From the opening to the present, we have sent a lot of samples, especially those sent abroad. In some countries, the courier fee has to be in the thousands, but we have not received any one. The cost of proofing and sending samples can only be borne by us. "A foreign trader said helplessly.

At present, this piece of cake in the market is getting smaller and smaller. Under the condition of equal quality, customers will definitely choose those factories with cheap prices to cooperate. At this time, the textile boss suffers a small loss. When the epidemic passes, the market picks up and gains the trust of customers. , And also laid the foundation for future cooperation.

In addition, when the market is in a downturn, many manufacturers will consider reducing production and vacations. In July and August of last year, many weaving and dyeing factories took high-temperature leave, but this year is likely to be ahead of schedule. In the case where the next order is unsustainable, many manufacturers will consider reducing production or even holiday. In the short-term, it is recommended that varieties with larger stocks go along with the market, and the transaction can be appropriately profitable; prices of lower-stock varieties can be temporarily stabilized, and the principle of production according to order, use-and-use, and strict inventory control is adhered to.

"In 2020, we do not seek profits, we only want to survive, and sometimes we are in danger, and it depends on whether the company can seize this opportunity." Said a textile owner who has cultivated textiles for more than ten years. Next, weavers should always pay attention to the epidemic situation, especially export, confirm in advance whether customers can receive the goods in time, and make preparations for the deep season.