The Epidemic Superimposed On The Traditional Off-Season, And Many Enterprises Went Bankrupt And Liquidated: How Do Textile Enterprises Carry The "Last Straw"?

In May 11th, the people's Court of Wulian, Shandong announced that Shandong Hualong textile Limited by Share Ltd was bankrupt. A generation of textile leading enterprises to such a degree, it is very sad.

Coincidentally, recently, many textile enterprises were declared bankrupt and liquidated by the court. On the auction website of Ali, there are a few textile enterprises that go bankrupt. What is even more surprising is that some well-known enterprises are also trapped in bankruptcy. Faced with such a "cold winter", how to break the ice to survive has obviously become a big test that businesses need to face together.

Closure of leading companies

The market is grim.

Shandong Hualong textile Limited by Share Ltd The official website shows that the company has 5000 employees. It is a large textile enterprise integrating spinning, weaving, garment processing, home textile, real estate and textile import and export trade. It mainly produces pure cotton and chemical fiber blended yarn, jet spinning worsted yarn, cloth products, garments and home textile products. There are more than ten series and more than 200 varieties. The company produces 60 million tons of yarn and 23000 tons of yarn annually, and has won many honorary titles such as "the competitiveness of China's textile and garment enterprises 500 strong" and "the advanced group of textile industry in the whole country". Its "dragon spinning" brand polyester and viscose fabric has been awarded the "Shandong famous brand" product. The company's products are sold throughout the country, but also exported to Europe and the United States, South Korea, Japan, the Middle East and other more than 30 countries and regions.

Regardless of the reason why the enterprise was not operating well in the early stage, the outbreak this year may be the last straw to crush it.

On the bulletin of the people's court, the reporter inquired that only 19 months in May 17th ~5, 7 textile and garment enterprises, including Binzhou Jinli Textile Co., Ltd., Shengzhou Tianlang clothing and Clothing Co., Ltd., Wuhan Guangdong cotton textile mill, issued the bankruptcy notice.

"Due to the overlay of epidemic situation and off-season, many textile and fabric enterprises have fallen into this" cold winter "recently. The biggest reason for the collapse of these enterprises is the fragmentation of capital chain, especially in this year's epidemic, capital is particularly important. An insider told the China textile daily reporter: "for the current textile enterprises, although there are signs of recovery in foreign trade, there are very few people who can receive real sheets in addition to protective clothing. Nowadays, textile enterprises can only walk on the "one leg" of domestic trade. Under such circumstances, many enterprises can only rely on production and holiday to save money, and the early failure of the business is also reasonable.

According to industry sources, in the first quarter of this year, many fabric enterprises were blocked by internal and external trade, resulting in no orders for their hands. Some of the weaving factories' inventories had reached a high level of about 2 months. "Inventory can not be cleaned up, there is no way to revitalize capital, and there is no money to buy raw materials, wages, etc. In this case, many manufacturers will choose to return the funds, but at the same time, the market price will be more chaotic. Other manufacturers will have to join the "price war" to snatch the shrinking "cake".

Taking a look at the textile market in Jiangsu and Zhejiang provinces, compared with the previous years, the 3 months after the start of this year are not satisfactory. According to the sample business data monitored by relevant websites, at present, there are 42 days in Jiangsu's Shengze area. Although it has declined from earlier years, it is still at a high level compared with the same period last year. In terms of starting rate, according to statistics, the opening rate of looms in Jiangsu and Zhejiang provinces is about 70% in recent years. Moreover, next will enter the traditional textile market in the off-season, the possibility of further decline in the possibility of larger.

International Federation of textile manufacturers (ITMF) In April 16, 2020, ~28 conducted a third survey of its members, enterprises and associations. The survey results showed that the average volume of global textile orders fell by 41%, compared with 2019, with an average fall of 33% in the global textile market in 2020.

Polarization

Best selling protective fabrics

Since the outbreak of the market, the demand for the terminal garment market has shrunk, leading to the prospect of conventional fabric products. But in contrast to conventional varieties, the market for masks and protective clothing is still very hot in the near future.

In May 11th, the data released by China Textile City showed that the heat of polyester protective clothing began to heat up since late April. As most textile enterprises use common products such as polyester Taffa, spring Asian spinning and other common products and PP and PE coatings to produce protective clothing products for medical purposes, the recent performance of polyester taffeta and spring yarns is particularly bright in the fabric market. In the China Textile City's best selling fabric list, spring Asia spinning ranks second, while polyester taff ranks the top ten.

At the same time, influenced by the heat of mask, the price of nylon has risen sharply in the near future. The price of nylon POY increased by 800 yuan / ton compared with the end of April. The price of nylon DTY increased by 900 yuan / ton compared with the end of April, and the price of nylon FDY rose by 900 yuan / ton compared with the end of April.

Recently, the sales of these protective clothing fabrics such as polyester and taffeta are relatively hot and the prices are rising. In May 10th, 190T polyester taff probably increased by 0.3 yuan / m compared with two weeks ago. According to an industry expert, "a lot of enterprises are looking at this trend, and they want to hoard the goods to earn the difference. This method is feasible. After all, everyone who wants to earn money wants to share a "cup of soup", and for the time being, there are still many foreign customers' orders in this regard.

However, this industry expert also reminds enterprises that we must see the crisis behind prosperity. "Stockpiling requires a lot of liquidity, and most of the purchases are cash transactions. If this part of the goods can be released in the later stage, it will be profitable to talk about. If the latter can not get out, the funds on the hands of the enterprises will be locked up, and it will outweigh the gains.

From B to C

Manufacturing enterprises heading for the front desk

In such a big environment, if the fabric enterprises rely on steady and steady business, they will not be able to pass the "cold winter" easily. If you want to survive in adversity, businesses need to break the rules.

"China textile daily" reporter found that many fabric enterprises are now striving to achieve the transformation from B to C side: through their own technological advantages in materials, break through the identity of suppliers, extend new brands, expand product service lines, and create brand IP.

"The most important impact of the epidemic on our customers is the cancellation of orders. In addition, as the fabric industry belongs to B2B, many offline marketing activities, exhibitions and regular visits of customers are not allowed to proceed as scheduled, and promotional activities have also been affected. Zhong Zhangwei, marketing director, Guangdong Beijiang Textile Co., Ltd. It is said that enterprises have increased the frequency of interaction between channels and consumers, such as jitter, fast hand, B station, and so on. For example, cowboy, in the dissemination of content will reflect what characteristics of the fabric, a antibacterial function of the fabric of its principle, what is the antibacterial effect.

"Since last year, we have made a B2C expansion attempt to hatch an independent sub brand, and set up Tmall shop PRTH, which is the flagship of the national tide cowboy. We hope to better promote our good cowboy, good fabric and good design. In the 1~3 months of this year, the number of visitors and the number of visitors on our Tmall store increased significantly compared with the previous quarter, and sales increased by 160%. Zhong Zhangwei said that in recent years, many online brands have developed quite rapidly, and Beijiang has been trying. Fabric manufacturers "stare at online brands" has become an obvious trend.

Sun Lei, planning director of Zhejiang Wan Zi Technology Co., Ltd. Introduction, Wan Zi's product research and development personnel to satisfy the fabric's basic organization, color and handle and other core demands, began to pay more attention to the daily wear function of consumers, including antibacterial, wrinkle resistant, mosquito repellent, anti UV, moisturizing and skin care needs.

"From 2B to 2C, we learned to think about products from a consumer perspective. In the past, consumers' cognition of brand clothing only stayed on the brand, and the fabric suppliers behind were not concerned. But we obviously knew more about the characteristics of fabrics than brands, and had more opportunities to see how to communicate with C users. " Sun Lei introduced Wan Zi this year has begun to try clothes orders (ODM or OEM), while testing its own garment supply chain management level, it can also verify the market demand and prepare for the future brand building.