In 2020, most bosses are still worried about customers’ outstanding balances, saying that life is very difficult. In the blink of an eye, 2021 is here, and the turbulent market conditions still fail to restore the “vitality” of textile bosses!
In the first month of 2021, in the WeChat Moments of textile practitioners, colleagues invariably posted the same news – due to the recent price limit of raw materials, please inquire in advance when placing orders. Price, the quotation shall be based on the day, hope new and old customers will know. The contents are similar, as if they were discussed in advance.
Has the market gotten better? Is business going well? In fact, not many people know the truth, but most people are already queuing up to buy the materials. It may not matter what the facts are. The most important point is that the market will always have the final say on price.
Competition in the textile industry seems to be increasingly biased towards powerful players.
If you sell cloth, it will be difficult to survive without financial support! Of course, it’s not just sufficient funds, but also the ability to control the product is equally important! There is also the need to find reliable customers, otherwise they will not be able to collect the money they owe, and it will be in vain.
One year, many people were making a fabric called super soft, and the market was particularly good. The main raw material was polyester, 75D144F flat yarn. Before August 2020, the price of this kind of flat sand was 6,700 yuan per ton, but by mid-November, the price had increased by three to four thousand yuan. If you are making orders, you may need all cash to get the goods, and the financial pressure is self-evident.
Do you think fabric suppliers will make a lot of money? For large-scale fabric manufacturers that have been producing a single product for a long time, their profits are actually very thin. The products they sell are concentrated in the hands of a few fabric suppliers, and the prices they sell are generally relatively reasonable, so their profits are still limited. So as you follow along, you will find that in terms of profit distribution, the upstream raw material production companies are in fact monopolized. But it is not a complete monopoly because its price also changes with the market.
The manufacturing companies we just talked about about ultra-soft products need to purchase raw material sand lines in large quantities. Factories with a little bit of financial strength will invest money in raw material reserves. After all, the shipment volume of each machine is more than one ton, and the production capacity is terrible. If raw material yarns are not prepared in advance, production will stagnate. , then if the machine is down for one day, you will lose one day’s money.
The number of machines in the factory is more than 20, which means that the daily shipment volume is about 20 tons. If calculated as 6,700 yuan per ton, 20×6,700=134,000 yuan! If the quantity of 20 units is used as the premise, the daily raw material cost for polyester yarn alone is nearly 130,000. You can imagine what kind of funds are needed to support the production of super-soft products in order to ensure that goods are shipped every day.
Then let’s turn around and talk about what kind of problems the suppliers responsible for sales have?
The first is the issue of rent. Nowadays, store rents in every local market are very outrageous, and the price changes every year, and will only rise but not fall. The store in Keqiao costs RMB 600,000 per year, and the one in Guangzhou costs over 1 million per year. This is normal.
The product also needs to go through a post-processing link, such as dyeing, brushing, ironing and shearing, etc.! This has to mention the role of dyeing factories. In recent years, the country has paid special attention to environmental protection and has shut down many small dyeing factories. In 2018, many dyeing factories in Zhejiang Province stopped production due to insufficient environmental protection, resulting in increasing dyeing costs.
The production capacity of each dyeing factory is limited. For example, the shipment volume per day is 70 tons, but the quantity entered into the warehouse that day is more than 100 tons, then there are 30 tons The quantity cannot be shipped normally. However, dyeing factories will still receive goods in order to make money. This has led to some small factories that have no say in the dyeing factories, and the orders they want to make are often far away.
Because dyeing factories must protect those customers who have been doing goods and dyeing in their factories for a long time. These people are not only large in number, but their payment must also be guaranteed. So those who do small quantities of goods , you can only watch helplessly as others ship goods, while your own goods are piled behind! Is there a solution to this problem?
Yes! In order to survive, some small manufacturers either form a group to form a relatively large size, or form an affiliation with a large factory, so as to increase the enthusiasm of the dyeing factory. The cost of this approach is unknown.
Even so, the cycle is still greatly lengthened. The rough fabric goes to the dyeing factory and takes at least 7 to 10 days to produce, and two days to ship to the customer. But it is difficult to settle your money at once. Your downstream also needs capital turnover, and the payment collection cycle is nearly two months.
That is, if you deliver the goods to him today, the value of the quantity is like 20,000. The money lent to downstream customers will not have interest for two months, and you have to worry about the loan. Can’t get the money back. One customer per day is calculated as 20,000 yuan, which is 60 yuan for two months.��There are 1.2 million. If you invest 1.2 million and the money will be recovered gradually after two months, do you think you can still hold on?
This does not include quality problems in the production of goods, the shortage of goods caused by customers not picking up the goods after placing orders, and the problem of customers’ payment arrears! The losses caused by these, if out of control, may be in vain!
If you don’t have enough funds, can you support it? </p
