The domestic textile industry experienced unprecedented difficulties in the first half of the year. The epidemic and high costs caused the outflow of textile and clothing orders. During the largest shopping carnival in the first half of the year, the “618” e-commerce platform clothing sales performance was poor. It is difficult to make a breakthrough in the demand for textiles and clothing in the third quarter. As an important chemical fiber variety, the market trend of polyester filament is also difficult.
Quietly 618:
JD.com’s growth hits record low, Tmall and Pinduoduo don’t have complete data
JD.com announced that its GMV increased by 10.3% during the 2022 618 Promotional Festival, setting a new low on the market. Competitor Alibaba did not release relevant data at all, while Pinduoduo announced the high growth of the category, but did not disclose the overall performance.
Consulting company Syntun predicts that the GMV of the three major e-commerce giants in 2022 will only be flat year-on-year.
Different from 618 in previous years, due to the impact of the epidemic, the supply chain and logistics are still not completely smooth. Whether it is brand merchants or large platforms such as Tmall and JD.com, their marketing investment is almost frozen. In addition to the epidemic, industry policies and sluggish growth are also important reasons why e-commerce giants have begun to shift from scale to profits to reduce expenditures in the past year, which will inevitably exacerbate the slowdown or even decline in online traffic and sales growth.
In addition, the rapid rise of the two major live streaming e-commerce companies Douyin and Kuaishou, as well as merchants’ interest in developing new platforms, have simultaneously dispersed the share of traditional e-commerce companies, making the past 618 promotion festival not only dull, but even more silent.
At the same time, according to Internet data, the sales of the entire network during this year’s 618 promotion were 695.9 billion yuan. Integrated e-commerce was lower than expected, and sales increased by only 1% year-on-year. Previously, clothing, as a category with higher gross profit, was the main force of the promotion. Military, this year due to poor domestic and foreign demand, clothing manufacturers are not very enthusiastic about participating in promotions, and some varieties have even given up promotions directly.
Clothing shortages lead to bleak demand
Polyester filament: promotion and burden reduction become mainstream!
Polyester filament yarn is trapped by the epidemic. Spring and summer clothing is out of stock. Domestic and international demand is poor. Some orders from Europe and the United States have been transferred to Southeast Asian countries. Southeast Asian countries, led by Vietnam, are currently experiencing a shortage of workers due to a surge in orders. Factories have raised wages to retain workers. Labor costs doubled. Although the domestic epidemic has been basically controlled and logistics has gradually returned to normal operations, the continued rise in oil prices in the second quarter has caused the prices of many textile raw materials, including polyester filament, to show a roller-coaster trend, which to a certain extent dampened the enthusiasm of clothing manufacturers for placing orders. At present, due to global inflation and the impact of the epidemic in recent years, residents’ consumption concepts have also changed greatly. Advance consumption has faded away, and consumption of non-essential items such as clothing has also gradually decreased.
Inventory trends of mainstream domestic polyester filament models from 2017 to 2022
According to data, the average inventory of domestic polyester filament yarns has been more than one month so far. If the decline of raw materials continues, polyester filament manufacturers still have expectations for promotions at the end of the month. However, considering the actual situation of terminal demand, even if there are promotions, companies will go The storage process is relatively slow. In previous years, July and August are the traditional off-season for demand. Downstream weaving manufacturers still have expectations of reducing their burdens. The supply pressure of polyester filament is highlighted and they are struggling.
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