Small And Medium-Sized Fabric Enterprises Launched Fierce Market Competition

By the end of the year, work in all walks of life has entered.

For most small and medium enterprises, orders are the guarantee for the survival and development of enterprises.

In view of this year's fabric market situation, like farmers' famine year, enterprises can seize it.

The first reason is capital.

The general trend of RMB appreciation has fluctuated.

The RMB exchange rate declined from December 5th to December 12th, and the renminbi rose again. This is mainly due to the slowdown of China's economic growth, the decrease in export surplus and the influence of the international hot money outflow.

At the same time, in the second half of this year, the proportion of small and medium-sized orders of domestic textile enterprises abroad is nearly 90%, which shows that the international market is very cautious, and the domestic market is worried about the fluctuation of raw material prices and exchange rates, and avoids the big bills and long lists, which further reflects the current market weakness.

In addition, as China's largest export area, Europe's economic recession in 2012 is extremely high, so the export prospects for next year are still not optimistic.

And often mention fabrics, raw material price fluctuation has been an unavoidable topic, entering the fourth quarter of this year, raw material market trend is still not clear.

By the end of 11, when weaving enterprises were getting warmer and warmer, the polyester polyester production and sales in the downstream had increased significantly, and the inventory of chemical fiber raw materials had dropped.

However, at present, there is still more than a month away from the Spring Festival, and the phenomenon of centralized stocking of weaving factories will not last for a long time. With the gradual decline of the start-up rate, the demand can not get substantial recovery. This situation also aggravates the cautious psychology of the downstream customers on the fabric orders.

On the other hand, although the price of clothing listed in the second half of this year has risen significantly, this does not mean that the upstream fabric market has entered a high profit era. The cost of labor increases, the shortage of funds and the bottom of the dollar have eroded the profits of weaving factories.

In fact, in the final analysis, the main reason for the scarcity of orders and the reduction of profits in the fabric market is overcapacity.

When excess capacity meets the market shrinkage, the final result is that enterprises sacrifice profits and reduce sales promotions.

Therefore, under such a situation, domestic fabric enterprises, especially small and medium-sized enterprises mainly based on export market, should always pay attention to market trends, adjust their coping mindset, and constantly enhance their competitiveness.

Only by constantly changing the market quickly can we stick to the tide.