As the year approaches, what is the status of textile companies that have experienced a year of ups and downs in production and sales? How to arrange production and sales before and after the festival after cotton prices rise? Judging from the media's visits to some enterprises in East China, the entire industry has mixed feelings, and the market may usher in a small wave of climax after the year.

The operating situation of small and medium-sized textile enterprises is not optimistic

     At present, many textile companies are already studying how to put the Spring Festival holiday. In this period of each year, the days of textile  companies are the worst times. Operators have to devote a large part of their energy every day to the problem of dealing with "money": to appease the door to ask for arrears; raise money everywhere The funds guarantee the regular payment of workers' wages, utilities, etc.

    Some media recently visited areas where small textile enterprises are densely located in the Yangtze River Basin, and found that the overall operation of these enterprises is difficult to be optimistic.

From the inquiry and understanding of many enterprises, the current situation of textile production and cotton operation in the Mainland is tepid. After the ups and downs of the cotton market in the second half of last year, many companies are recovering as the cotton price rises.

    In September-October last year, some small factories with small strength and weak ability to compete with the rapidly changing market have stopped production. At this stage, the cotton spinning market has risen, and some small factories have resumed production and processed some small and micro order products. At the same time, companies in normal production and sales have no plans to increase production. First, they are worried that the market will change, second, orders are not plentiful, and third, the peak season of the apparel and clothing market at the end of the year has passed, and the demand for raw materials is balanced or slightly reduced. .

    Judging from the situation of holding orders by enterprises, most enterprises currently focus on order organization. At Yanfeng Dafeng, many textile company executives have recently visited customers in the sales area to discuss business and sign orders. From what we know, there is basically no problem in the production arrangement of textile enterprises' orders until the end of the lunar calendar. The focus of the organization is now on the production orders for the first quarter of 2020 after the Spring Festival. It is reported that the local textile companies with better production and sales situation have already placed orders in hand until April of the new year, but the order volume is small and scattered.

    At the end of the year, textile companies had their own calculations on how much raw material inventory they put, but not many companies intended to increase it. The companies that choose to enter the market quickly are still the majority. The investigation shows that it is common to keep raw materials for 30-45 days. Because of the production transfer after the Spring Festival, companies have specially arranged not to increase the inventory, because the market supply is still reassuring for companies, as long as they have orders and funds, It is not a problem to organize the raw material on-board production in real time.

    It is understood that different channels and methods of organizing raw materials for textile enterprises have different costs and disadvantages. More textile companies are still operating at a price, focusing on capital preservation. In recent years, there have been fewer profitable companies. The textile enterprises with higher labor expenditures and higher management costs in the east admitted that it has not been easy to guarantee the operation of the enterprises in the past two or three years, and profitable enterprises account for about 30%.