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Cancel textile foreign trade order and switch to domestic trade market? The market is also not optimistic

Release Date:2020-03-25


                                           


  

"Two large orders from Europe and the United States were cancelled" "A order for 4,500 tons of knitted fabrics was cancelled" "An order of more than 9 million meters for a dyeing factory was cancelled" ... "Order cancellation" has become the key word of the current textile market, especially All kinds of foreign trade orders are either being cancelled or on the way.


Although the new crown pneumonia in China has been basically controlled, the situation overseas is clearly out of control. In Europe and the United States, they have quietly picked up the city closures, road jams, travel bans, etc. They have quietly picked them up and began to implement them gradually. Enterprise stagnation and logistics obstruction are being staged in these areas.


The inconvenience of office logistics, unknown fashion trends, and insufficient confidence in future clothing sales are being staged as an important source of our textile foreign trade orders. The entire spring and summer foreign trade orders will be affected by this, and it is not difficult to understand that they will be greatly reduced and cancelled.


The outlook of the foreign trade market is so unknown, can we return to our familiar domestic trade market?


The domestic trade market was once abandoned by some textile people


As an important part of the textile market, domestic trade has always been the beginning of the growth of most textile people. However, not every textile person will adhere to this market. Once the time is ripe, it seems that many textile people must go to the foreign trade market.


01


減少 Order reduction:


The threshold of textile trade is not high, especially in the domestic trade market. At the initial stage, one or two people can take orders and produce. It is also because the threshold is low that the number of people entering the industry is increasing year by year, but the number of orders is limited. Many new and old companies seize the fixed market. After all, the number of orders that can reach a single company is limited, and it is difficult to avoid the trap of "low-price competition."


02


It is difficult to pay for goods:


When doing business, you cannot avoid asking for payment, especially in the textile domestic trade market. "Credit sales" are prevalent, and the lack of contractual circumstances determines the time for payment. Even if there is, it is difficult to implement them. Most of them are based on oral communication. Orders are monthly, March, half-yearly, and even annual. Of course, it only needs to be extended if the repayment time is extended. In fact, there are often a lot of "old Lai" enterprises in the market. It seems that their business is in arrears and non-payment.


In order to avoid low-price competition after the reduction of orders and the problem of payment, many textile people have the idea of transferring to foreign trade when the conditions are mature. After all, the overseas textile market is broader, and futures payments will be strictly contracted. However, the current overseas market is on the verge of stagnation due to the epidemic situation. At this time, will the domestic trade market have the ability to digest textile production capacity?


訂單 Current domestic market orders are not optimistic


Although the pneumonia in our country has been basically controlled, the impact of the epidemic has not ended immediately. Our spring and summer clothing sales market has been deeply affected, and the upstream fabric end is difficult to escape.


"We are still proofing, and we have not received a decent order yet ...", "At this time in the past, we shipped at least three or four trucks to the clothing factory, and this year we have only issued one car's fabric", " The order of more than one million meters of silk spinning has been reduced to tens of thousands of meters by customers. "... Several traders in the domestic trade market have encountered the same situation, and orders have decreased significantly compared to previous years.


Not only these traders who make "orders" fabrics feel that orders are shrinking, but customers of professional "market goods" fabric orders in some large domestic spot markets are also lacking confidence in the market, and it is difficult to prepare as many types and large quantities as in previous years. . The entire domestic trade market has been in a state of abnormal lack of "market goods" orders.


Today's textile domestic trade market does not have many advantages over foreign trade markets. The state of reduced orders and thin profits still exists, and there is even a growing trend. Because some traders are planning to switch from foreign trade to domestic trade, this will intensify competition in this market. A buyer's market where "supply is greater than demand" is about to form, and all textile companies may face a situation of "unsatisfactory" orders, and various pressures and difficult payments.

       
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