Slow destocking of textile enterprises and weak downstream consumption
Recently, the central economic work conference proposed five major tasks for 2016, namely, de capacity, de inventory, de leverage, cost reduction and making up for weaknesses, which is undoubtedly good news for textile enterprises.
Since 2015, due to the weakness of downstream consumption, most of the upstream funds have been transformed into downstream inventory, and the textile mills have been struggling. For textile enterprises, de inventory has two meanings: one is to digest the inventory of finished products. The person in charge of a textile enterprise in Dongying, Shandong, said that as of January 19, the inventory of finished products in their factory was 17 days, 3 days less than the level of more than 20 days in previous years. The reason is that they have always insisted on production according to orders this year, and the inventory has always maintained a low level; Second, withdraw funds. If the product is sold and the payment cannot be returned, the pressure is still on ourselves. The person in charge said that since October 2015, the credit loan of downstream enterprises has reached more than 10 million yuan, equivalent to more than 500 tons of combed 32S yarn, and the inventory is still in hand.
When it comes to policies, everyone is elated because this is the only way to solve the problem of China's industrial development. However, when it comes to specific operations, most textile mills frown.
How difficult is it to digest the actual inventory
This has to look at the impact of the outer yarn. According to customs statistics, China imported 1.52 million tons of foreign yarn in 2012, 2.1 million tons in 2013, 2.01 million tons in 2014, and 1.8251 million tons from January to September 2015. It is no problem to exceed 2 million tons. In 2016, the market thought that exceeding 2.5 million tons was not a problem. Therefore, it is said that at present, the quality of cotton yarn below c40s in India, Pakistan, Uzbekistan, Vietnam, Indonesia and other places has fully reached and surpassed most Chinese small and medium-sized enterprises. Even combed yarn and high matching yarn have gradually occupied a place in the Chinese market, and the proportion of new spinning technologies and products such as compact spinning and siro spinning is even higher than that of Chinese enterprises.
To make matters worse, the downstream consumption is extremely weak, especially the export data of textiles and clothing is not optimistic. According to customs statistics, China's cumulative export of textiles and clothing in 2015 was US $283.979 billion, a year-on-year decrease of 4.86%, which can be described as an abyss before and a pursuit after. It is difficult for textile mills to digest inventory.
How difficult is the way to withdraw funds
I once heard a colleague in the industry say that at the end of the year, they also sent salespeople to recover the payment for goods. After a busy month, they only caught up with more than 1 million yuan, less than one twentieth of the foreign payment for goods. Such a gap also made them speechless. The situation of this enterprise is by no means an example. It is understood that since 2014, textile and garment enterprises in China's coastal areas have set off a wave of closures, and many enterprise bosses have left their plants, equipment and workers to run away.
For example, in May 2015, a garment enterprise that claims to have more than 500 image stores and the whole group has nearly 5000 employees was burst into bankruptcy. In August 2015, a garment factory in Jiangmen City, Guangdong Province, a large Hong Kong funded enterprise, with more than 2000 workers and an annual output value of more than 100 million yuan, mainly produced Adidas and other European and American famous brand sportswear. Due to the serious shortage of production orders and operating difficulties, it terminated labor relations with workers and the equipment was sealed up by the court. In recent years, these cases are numerous.
If the skin does not exist, how can the hair be attached. Therefore, many textile factories sell their goods on credit. In the face of the downstream tide of bankruptcy and running away, it is like meat buns beating dogs.
From the above two points of view, how difficult it is for textile enterprises to go to inventory. In 2016, facing the pressure of destocking, there is a long way to go. A market person said that there are two ways to help enterprises to inventory, which can also be regarded as a dead horse as a living horse doctor. First, make full use of the advantages of the Internet to develop o2o sales model; Second, in the cold winter market in recent years, lay a good foundation, practice internal skills and wait for the opportunity to find a breakthrough.
