Order shortage and order tide coexist, and the fabric industry is “ice and fire”

Since May, the domestic consumer market has accelerated its recovery. Compared with the hot catering and tourism markets, the textile market is still slightly deserted. “The …

Since May, the domestic consumer market has accelerated its recovery. Compared with the hot catering and tourism markets, the textile market is still slightly deserted. “The recent market conditions are somewhat dull.” Meng Lingtao, the relevant person in charge of Xinsheng Dyeing and Weaving Co., Ltd., told a reporter from China Textile News.

This is not an isolated case. SunSirs monitoring shows that the domestic sales market in the textile industry is currently declining moderately, foreign trade orders have not shown an improvement, and the comprehensive operating rate in Jiangsu and Zhejiang is less than 57%. “Insufficient orders, low prices and thin profits” have become a prominent feature of the recent fabric market conditions.

Although the current textile market situation is not prosperous, the fabric market still shows some remarkable features. Some products have performed steadily despite the pressure of the external environment, demonstrating strong resilience.

Market recovery falls short of expectations

“The recovery of demand in the textile market is not obvious.” This is a common feeling shared by many heads of fabric companies recently.

“Compared with last year, there are no special changes in the market sales this year.” Meng Lingtao revealed that although the company’s sales this year have increased year-on-year, they are different from what was expected at the beginning of the year. “We previously predicted that the sales of the company’s products should increase by 25%-30% in the first half of this year, but judging from the current orders, it is still somewhat difficult to achieve this goal.”

Huang Yujuan has been in the industry for more than 10 years and now works as a business manager in a fabric company in Zhejiang. She had similar feelings. “The performance did not meet expectations. The market has recovered to a certain extent this year, but for the fabric market, the positive factors have not yet emerged.”

Fabric companies that focus on the foreign trade market are also having a hard time.

Shaoxing Quanxing Textile Co., Ltd. mainly produces polyester fabric products such as polyester taffeta and pongee. “Most of our customers are foreign clothing brands. This year, their sales are generally not good, resulting in a decrease in our orders. If there are no more new orders after the existing orders are delivered, the company may They will choose to reduce the startup rate.” Lu Xiaojun, the company’s sales manager, said, “In the past two days, foreign customers have come to negotiate prices. In the past, as long as the quality of the fabric was guaranteed, a slightly higher price was not a problem, but that is no longer the case. At present, corporate orders are mainly short-term orders, and profits have declined compared with previous years.”

The latest issue of “China·Keqiao Textile Index” shows that the foreign trade price index showed a month-on-month downward trend. Among them, the foreign trade price index for chemical fiber filament fabrics closed at 154.49 points, down 2.07% from the previous month; the foreign trade price index for embroidery products closed at 177.82 points, down 27.08% from the previous month; the foreign trade price index for dipped, coated and coated textiles closed at 99.45 points, a month-on-month decrease of 0.55%; the foreign trade price index of knitted and crocheted items closed at 167.09 points, a month-on-month decrease of 29.78%.

Qi Jinyue, an analyst at Longzhong Information, said that the recent signs of the off-season in the textile market have become prominent, the market trading atmosphere has weakened, and orders are still weak. Early orders have been delivered one after another, and there are no obvious signs of improvement in subsequent orders. The fabric market confidence is still lacking.

Outstanding performance of outdoor fabrics

Although the overall performance of the current market conditions is mediocre, reporters found that some fabric categories performed very well, with sales growing against the trend.

From 2021 to 2023, Taobao and Tmall’s “outdoor” search volume increased by 659% year-on-year. Likewise, this change is also reflected positively in fabric sales. Relevant platform monitoring data shows that recently, nylon four-way stretch fabrics have continued to sell well, and it takes about 5 days to wait for production orders. It is understood that nylon four-way stretch feels soft and comfortable, has high elasticity, good resilience, is easy to care for, and is not easy to wrinkle. It is an ideal fabric for making all kinds of outdoor clothing.

Driven by hot sales and rising raw material prices, the price of nylon four-way elastic has also risen. The quotation has risen in a short period of time, from 5 yuan/meter in early April to the current 5.2 yuan/meter-5.5 yuan/meter. .

In order to meet the needs of the outdoor market for differentiated, functional and green fabric products, various fabric companies have crossed the sea and shown their magical powers.

Suzhou Niujiu Textile Co., Ltd. is a company focusing on functional outdoor fabrics and clothing linings. According to the relevant person in charge of the company, this year, the company mainly promotes sun protection clothing series fabrics and waterproof and breathable series fabrics. “The products are very popular with customers. We have recently participated in many exhibitions to promote them, and the results are good.”

“Outdoor functional fabrics are very popular this year, and sales are rising steadily. We have also developed many new fabrics for yoga sports and cycling wear, attracting many interested customers.” said Chen Qiang, business manager of Xin Jingbang Textile Technology Co., Ltd. , this year, the company has focused its innovation on the development and production of differentiated outdoor fabric products, and strengthened scientific research and innovation on fabric raw materials, weaving, dyeing and finishing.

Wujiang Tutech Textile Finishing Co., Ltd. recently launched gall-free anti-velvet direct-filling fabrics which are very popular among buyers. Huang Yue, general manager of the company’s trade department, said: “This fabric is stretchy, light, and breathable. In the post-finishing process, we also superimposed a layer of imported heat-storage film on the fabric to increase the heat-storage function of the fabric. The warmth retention will be better.” Huang Yue revealed that currently, the company’s fabric can be sold for 20 yuan/meter, and specially customized styles can even be sold for 80 yuan/meter. “This sectionFabric orders are almost scheduled until October. The company has established cooperative relationships with domestic and foreign mid-to-high-end outdoor sports brands such as Bosideng, Fila, and Kappa, and is expected to bring tens of millions of yuan in sales revenue to the company every year. ”

Shift from increasing production to improving quality

On one side, supply exceeds demand, and on the other side, demand exceeds supply. What kind of market message is conveyed behind the phenomenon of “ice and fire” in the fabric market?

“Everyone understands the principle of ‘Whatever the market lacks, companies will do’, but in reality, companies still need a lot of investment to adjust production. If companies blindly follow the trend and rush in, a new trend is likely to emerge. There is a glut of products.” Huang Yujuan said that from actual experience, if companies follow the market trend, it is often easy to increase market risks, especially for companies that cannot produce product features and quality, the possibility of failure will increase. “We have no plans to transform in the near future. Although competition in the conventional fabric market is fierce, the market is also broader.”

Meng Lingtao analyzed that in recent years, the fabric market has undergone profound changes, with costs rising, prices falling, and orders tightening. “Under the new situation, enterprises cannot stand firm in the market by simply developing a certain product and producing more of a certain type of product. Instead, they need an all-round change. Enterprises must improve their internal skills, from design, production, Improve sales and other aspects in all aspects, and accelerate the transformation from increasing production to improving quality.”

Huang Yue said that only good products and good quality can occupy the market. In the future, Tutech will continue to increase investment in research and development, promote intelligent transformation, use new materials, new technologies, and new processes to develop high-end functional fabrics and win a larger market share. “This year, we will actively participate in various exhibitions at home and abroad to promote the company’s products to more customers and strive to increase sales to a new level.”

“China·Keqiao Textile Index” predicts that in June, domestic demand and foreign trade orders will increase, the output of production or processing enterprises will increase slightly, foreign trade processing orders will also increase slightly, summer regular varieties and new models The spot transactions of products will increase, autumn fabrics will be put into trial orders in batches, and new fabrics for marketable clothing and new decorative fabrics will still form the highlights of major markets.

“Since 2023, competition in the textile market has further intensified. The first quarter will be a difficult challenge for many fabric companies, but recovery will still be the main theme of the market in the second half of this year. During this period, fabric companies still need to move steadily.” Qi Jinyue pointed out that the second half of the year is the main ordering stage for the foreign trade market. As the foreign trade situation continues to recover, the subsequent market conditions of my country’s textile market are still worth looking forward to.

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Author: clsrich