September is here, and the biggest question plaguing market participants recently is: Is the market really getting better? Will the “Golden Nine and Silver Ten” really come?
Clothing orders have been canceled in large numbers, and there is a shortage of orders in Southeast Asia.
Textile industry still feels the cold wind
In the first two years after the epidemic, although the demand for textiles shrank, it was not very obvious. This is because European and American countries have been raising debt to maintain consumption.
But this year, after these countries began to “lie down”, demand began to decrease significantly, and the accumulated economic problems in some other countries also began to explode. Except for a few energy countries, the economic data of most countries in the world are not good.
Demand has decreased, but production capacity cannot be cleared in time. Even in Southeast Asian countries, production capacity is constantly increasing, and the oversupply situation is very obvious.
For this reason, in recent times, inflation has led to a decline in demand, and major retailers in the United States are trying their best to reduce inventory; at the same time, due to high inventory levels in clothing and non-essential categories, some orders have to be canceled to reduce the company’s overall profitability. Inventory levels.
U.S. retail giant Target recently said it had reduced its inventory of non-essential goods throughout the second quarter by canceling more than $1.5 billion in orders and lowering product prices. Walmart Chief Financial Officer John Rainey also recently stated that the company has “cancelled billions of dollars in orders” to cope with the inventory backlog in non-essential categories such as clothing in the past few quarters. In addition to canceling orders, Walmart has also taken price cuts on lower-volume categories. In addition, the US department store Kohl’s has also reduced the number of orders received and increased promotional activities to solve the problem of excess inventory. As consumers shift to essentials, big-box and department store retailers are running up excess inventory in discretionary items such as clothing.
Overcapacity leads to the involution of the textile market. Affected by the global economic recession, the textile industry has felt the cold wind. The impact of the recession on new orders received by exporters is clear. Southeast Asian countries have also gone from a labor shortage in the first half of the year to a current wave of layoffs.
Times have been tough this year. Even some big international brands known for their high-quality products have begun to lower their prices and take the cost-effective route, let alone some conventional products. The current situation is that everyone can make the conventional products with the greatest demand, and there is not enough meat to eat, so we can only compete on price. In the end, we can only choose one for profit and order.
Nowadays, large retail giants are feeling the pressure of inventory and are beginning to reduce orders. When it comes to weaving and fabrics, the feeling of enterprises will become more and more obvious, and what textile enterprises have to do is to survive in this difficult environment.
Of course, the market has always been polarized. Some people eat porridge, while others eat meat. Textile and apparel orders exported to the U.S. market have encountered obstacles, but the sales of exported home textile products have been outstanding this year, and they may still return to their peak in the future.
The global home textile market continues to expand
Bedding category has the highest annual growth rate
According to external data, the global home textile market will be US$132.99 billion in 2021 and is expected to reach US$151.825 billion in 2025. During 2020-2025, the market share of the bedding category in global home textiles will grow the fastest, with an annual growth rate of 4.31%, which is higher than the annual growth rate of global home textiles of 3.51%. The global bedding market size in 2021 is US$60.940 billion, an increase of 25.18% compared with 2016, accounting for 45.82% of the total home textile market share. The global bedding market size is expected to be US$72.088 billion in 2025, accounting for 45.82% of the total home textile market share. 47.48% of the total market share.
In 2021, the market size of bathing and home textile products will be US$27.443 billion, and is expected to reach US$30.309 billion in 2025, with an annual growth rate of 3.40%. The carpet home textile market size will be US$17.679 billion in 2021, and is expected to reach US$19.070 billion in 2025, with an annual growth rate of 1.94%. The market size of home textiles for interior decoration is US$15.777 billion and is expected to reach US$17.992 billion in 2025, with an annual growth rate of 3.36%. The market size of kitchen home textile products is US$11.418 billion and is expected to reach US$12.365 billion in 2025, with an annual growth rate of 2.05%.
Overall, despite the pessimistic outlook on the global epidemic, people’s work-from-home lifestyle has gradually taken shape, further contributing to the continued growth of the home textile market share. However, events such as the epidemic and the conflict between Russia and Ukraine have created resistance to the export of textile and apparel products. However, China’s status as a major manufacturing country cannot be replaced in a short time. The market demand still exists. At the same time, due to different customer needs, Therefore, the phenomenon of market product polarization has formed.
September or the buffer period during the off-peak season
Is the hot local market catalyzing the arrival of the peak season? !
Entering the “Golden Nine”, the current market is at the juncture of the transition between the off-season and the peak season. Whether this baton can be successfully passed on has attracted much attention. A little trend in the market may have an impact on the order-taking situation of textile bosses.
As for whether orders for the upcoming Christmas season can arrive as promised, there are still many negative factors, such as exchange rate fluctuations,�There is a reverse flow of orders from South Asia, and U.S. apparel companies are still losing money… The specific follow-up trend of U.S. orders and other foreign trade orders will still depend on customer demand, epidemic trends, product characteristics and other factors.
From the perspective of textile people, at this time in previous years, the market has clearly shown signs of entering the peak season, but this year it is still calm. The recovery of demand cannot be completed in a moment, and the increase in orders also requires a process, so September may still be a buffer period like last year. What the current market lacks most is confidence. Once confidence is restored, perhaps market vitality will come. The popularity of some markets such as home textiles may catalyze the arrival of the entire peak season.
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