In the new year, the textile industry also has new trends. At the end of last year, we visited the market to see what the market would be like in the new year. Now let’s take a look at what textile people think of this year’s market.
Optimistic type: Because the market suddenly became hot in the last two months of last year, many textile people believe that this is a sign that the textile market has bottomed out after being weak in previous years. Through investigation, we learned that no matter how the business situation is, at least compared to the first half of the year, the overall business has improved to a certain extent in the second half of the year, especially in the months after October. This can be seen from the manufacturers’ You can see it from the startup rate.
Many textile people told us that starting from the second half of last year, their order quantity began to increase significantly, and the trend did not stop during the Chinese New Year. Especially for stretch fabrics, sales could not stop at all, and some orders even Scheduled for this year. They admit that this is the main reason why they remain optimistic about this year’s market.
It can also be seen from the Shengze Silk Chemical Fiber Monthly Prosperity Index of the Ministry of Commerce monitored by China Silk City Network that after October, the market sentiment index began to rise linearly, reaching a high of 125.52 by the end of the year.
Pessimistic type: Of course, not everyone is optimistic. There are also a lot of textile people who are pessimistic about the market in the new year. Through discussions with them, we learned that the main reason for their pessimistic attitude towards the market is based on their judgment of trends.
They said that looking at the past few years, the market was at its best in 2012. Business at that time was much better than now and profits were sufficient. As time goes by, their business becomes more and more difficult year by year, the profits of their products are also getting lower year by year, and their receivables also cause them great trouble.
According to the year-end survey of 150 textile companies by China Silk City Network, the pressure on receivables of textile companies in 2016 was still relatively high. More than half of the companies had receivables exceeding 30% of sales, and it is said that the account period is generally three months. On the upper side.
On the one hand, the labor costs in Southeast Asia are only about one-third of those here, and there are tax benefits; on the other hand, domestic labor costs are getting higher and higher, and the costs of printing, dyeing, and raw materials are also constantly reaching new heights. In addition to issues such as receivables, environmental protection, high pressure, and the third phase of the Golden Tax, manufacturers generally stated that although business was better in the second half of the year, profits did not increase compared to the past, but fell compared to the past.
In terms of cost, it cannot compete with Southeast Asia. Domestic government regulations have also become stricter. Because the cost of transformation is too high, there is insufficient motivation for transformation, which has led to a large reduction in orders, which makes them pessimistic about this year’s market.
2017 is a year of transition. On the one hand, due to issues such as cost policies, the low-end textile industry continues to move to Southeast Asia; on the other hand, some products are selling well, and the textile market has gradually come out of the sluggish market in the previous two years and begun to pick up.
I wish all textile people can seize the opportunities and ride the waves in the new year!