This year’s textile market is difficult! Disaster! Disaster! It’s even more difficult!
After experiencing a difficult 2021, many textile people are looking forward to the market changes in 2022 Well, the limited time limit, however, poured cold water on the textile people. 2022 More than half of the year has passed, and we have gradually discovered that business in the textile industry is getting more and more difficult! Crazy production capacity expansion, production capacity transfer, and blind production have resulted in huge overcapacity. Weaving manufacturers have difficulty in balancing production and sales, and the textile market is going downhill.
Coupled with the ups and downs of the foreign trade environment, it is difficult to have direct benefits. The textile market lacks upward momentum, and companies are more or less under financial pressure. In addition to the blind expansion of the companies themselves, the difficulty in receiving orders also puts companies under great pressure. This year is a difficult year for the textile industry. More and more companies cannot survive and have no choice but to go bankrupt.
A comprehensive analysis of the reasons for the collapse of the textile industry mainly includes the following points:
First, after three years of epidemic, it is difficult for enterprises to survive.
Second, in recent years, my country’s environmental protection requirements have become higher and higher.,Plastic packaging, as a highly polluting and energy-consuming industry, has been greatly affected. This impact includes the difficulty in obtaining financing from banks and other financial institutions, and some companies have even been shut down directly. Environmental protection inspections are becoming more and more stringent. If the standards are not met, immediate rectification is required, and a large amount of money and resources are invested in self-improvement. However, many companies still only choose to “Look at money“, focusing only on immediate interests and ignoring If the long-term development of an enterprise is affected, it will be a matter of time before it is shut down or bankrupt.
Third, small and medium-sized enterprises have difficulties in financing their operations.
Fourth, homogeneous competition is too fierce, profits are becoming increasingly diluted, and there is no longer much money to be made.
Fifth, the COVID-19 epidemic broke out in many places this year, shutting down the economy in many parts of the country and causing depression in all walks of life. However, wages and rents have to be paid continuously, which has led to the depletion of cash flow in small and medium-sized enterprises.
Many small and medium-sized textile factories have closed down this year. The main reason is that due to the impact of the epidemic, many companies cannot survive. However, we must also see that environmental protection, high rents, homogeneous competition, weakening domestic demand, blocked exports, broken capital chains, financing difficulties and other reasons have made the survival of small and medium-sized enterprises even worse. Therefore, if the business and development environment of the company can be improved, the probability of the company’s survival may be higher. You know, 80%of domestic employment problems must be solved by small and medium-sized enterprises. If small and medium-sized enterprises close down one after another, “Stabilizing employment” is out of the question. “The wave of bankruptcies” is not the result we want to see, but the emergence of the wave of bankruptcies is like a blow to the head. It wakes up the domestic textile industry and tells domestic textile companies that we have reached an extraordinary period. If we continue to blindly expand and still use low-cost products to seize the market, what will eventually greet us will be“Destruction”. Therefore, the domestic textile industry must learn to think and learn to be flexible, so that it can break out of another “sky” in such a harsh environment. . In fact, every industry will experience an “Industry reshuffle” , with the development of the times, the more competitive companies will be, the more they will survive and their market share will increase. The more competitive companies are, if they cannot improve their competitiveness, even if this round of washing If the cards are not shuffled, they will still be shuffled in the next round. Therefore, improving the competitiveness and advantages of enterprises is a top priority!
On the one hand, large enterprises are using transformation and upgrading to cope with the increase in various costs, while on the other hand, small and medium-sized enterprises are forced to choose “leave the market.”
Gao Yong, vice president of the China Textile and Apparel Industry Federation, told reporters that it is expected that the annual output value of enterprises above designated size in the textile and garment industry will exceed 7 trillion yuan this year, with the entire industry The enterprise output value will exceed 9 trillion yuan. Hu Wenwei also said at the meeting that there are currently 230,000 small and medium-sized enterprises in the textile industry, and 3.8% of enterprises above designated size. Thousands of families.
In other words, although there are many small and medium-sized enterprises, enterprises “above designated size” still bear most of the production capacity of the textile industry. And these enterprises are not as vulnerable as small businesses in the face of difficulties.
“Developed countries have not withdrawn from the textile and garment industry. They still regard it as an important industry.” Sun Ruizhe, vice president of the China Textile and Apparel Federation, told reporters that from a global perspective, the global industrial trade pattern There has been no fundamental change because developed countries have withdrawn and emerging countries have entered with all their strength. Not only have developed countries not withdrawn from the textile and apparel industry, they have also stood at the high end of the global division of labor in the textile value chain.
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