Wuhan textile and apparel industry in early summer

August 25, 2019

Yesterday at 11 am, Shen Xingxing, owner of Yunxing Textiles, Taiyuan Textile City, finally welcomed several guests. "You want the goods manufacturers to have, but the order will take some time," Shen Ah-hsing explained to the guests. However, the impatient buyer complained a few words and turned to leave. "The business is 30% worse than last year and it is not enough to get more goods." Shen Ah-hsing sighed.

Due to the continuous fall of international commodities and the market's sluggish expectations, the reporter found that Wuhan's textile and apparel industry chain has generally fallen into a “buy to buy, not buy to fall,” and shrink production cycle this year.

20% of companies are losing money in May-June this summer sales season, but yesterday's DaJie Street clothing market seems very deserted.

“In the past year, we could sell four or five hundred cloths. This year we can only sell two hundred pieces. It's not bad.” Ronghua Cloth boss told reporters: “The clothing companies are very cautious, and they just dare to “hang” to sell.” After more than ten years of street freight transportation, Master Peng was busy playing “landlords,” and he told reporters: “In the past two months, the summer season in the past year has been greatly shortened, and it will be no longer as soon as June. This time last year One can pull sixty-seven days a day and only pull two or three times this year."

The situation of big companies is not much better.

Jiangnan Industry Co., Ltd. introduced: "Everyone dares to set a short order for two or three months. Last year was a six-month single. This year's sales dropped by about 20%."

Yi Yida, general manager of Yimeida, who spent 20 years as an apparel company, asked the reporter aloud. Now the business is booming: “We really want to change course. At this time last year, the dress has sold 120,000 pieces, and this year it sold 20,000 pieces; The edition, with the first edition, and the first edition, is one of the 1500, and now only dares to do a 500 edition. The inventory of many small garment factories has reached 8,000-10,000 pieces, only 2,000 at the peak of last year; In previous years, it was generally a holiday on July 15. This year will certainly be ahead of schedule."

According to the data released by the China Textile Industry Federation, from January to April, the loss of textile enterprises above designated size reached 20%, and the amount of losses increased by 120% over the same period of last year. According to the person in charge of the Light Industry Department of Wuhan City Economic and Information Commission, the output of Wuhan's textile fabrics dropped by 23% during the same period, and clothing declined by 5%-6%, especially among SMEs.

Commodity plummets with a "declined" consumer market "It was originally thought that cotton will enter a high-price era. I did not expect this year to come back again and fall so dumbfounded" that Jiangnan Industry Co., Ltd. said: "This year's cotton prices have peaked from last year. The price of 33,000 yuan per ton fell to 18,000 yuan, and almost half of it was cut off; and the veil price also dropped from 29,000 yuan at the beginning of the year to 27,000 yuan." Commodity prices plunged endlessly, causing buying prices to rise. The market that does not buy falls is getting depressed.

During the interview, the reporter found that the cautious production of textile mills, the prudent ordering of garment factories, and the cautious purchase of the sales market have caused an industry-wide panic contraction. Under the tightening, the consumer market has become weaker and has become a vicious circle.

In addition, the difference between domestic and foreign cotton prices is 4,000 yuan per ton, causing large outflows of orders to India, Vietnam and other places. The entry of coastal enterprises into the domestic market has made the competition increasingly fierce. Many companies report to reporters that this year's sales of cotton garments dropped by about 70%.

Under the background of both production and sales, the mode of “accounting for money” in the clothing and spinning industry appears to be struggling. The “triangular debt” makes the company face the crisis of fund fracture at any time.

"In the first half of last year, the purchase price could return 90%. There is no shadow this year." Cheng Yisong said: "Nothing, I have borrowed 2 million from the bank and only 170,000 a year for interest."

Chairman of the Wuhan Garment Merchants Association and Chairman of Yuantian Apparel Liu Shuren believes that: “In the context of a sluggish economy, Hanpai clothing should seize its own characteristics of positioning mid-range, fast, and high-quality. It is not necessary to over-pursuing brand, added value, and mid-range. The anti-risk ability of clothing is the strongest. However, small and medium-sized garment enterprises will inevitably usher in a round of reshuffle."

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