Is Domestic Marketing The Way Out? Every Day, 700 Enterprises Turn To Domestic Trade. Maybe Everyone Has Nothing To Do.

Since March this year, overseas epidemic has spread rapidly, and all the enterprises involved in foreign trade all over the country have more or less postponed or cancelled orders, including our textile industry. Even at that time, a wave of "rush to export" orders, mainly refers to the order of customers to cancel the order, so we can see that the textile trade is grim. Even though it is now in late May, foreign trade orders are still scarce because of the signs of no control over overseas epidemic.

Slow recovery of foreign trade

Only a few enterprises have a single business to do.

While the market is improving, we are more concerned about the foreign trade that has been in a state of suspension. Is there any recovery in the near future with the resumption of the resumption of work and the domestic market? However, through research, the answers we get are not ideal. According to the feedback from sample enterprises, 90% of enterprises still fail to receive foreign trade orders, and the whole export trade is stagnant.

A company responsible for 90% of the original foreign trade share the feedback, "our foreign trade is exported to Malaysia, Australia, Japan and other goods. At present, it is still in a state of stagnation. The customers who had cancelled the order did not require delivery, and the new order was not. The customer has already resumed work, but he has not received the list, so no one can do it alone.

Only a small number of enterprises stopped the export of foreign trade without being affected by the epidemic, but the number of orders was reduced a lot. Enterprises that do not stop exporting are basically sent to Southeast Asian countries, such as Bangladesh and Vietnam. A foreign trade enterprise feedback, export orders have been, but the amount is less, in the past an order is tens of thousands, hundreds of thousands of meters, now even more than ten thousand orders are very scarce.

A small number of enterprises' foreign trade orders start from stagnation to start a small number of orders. Basically, Shanghai has resumed work outside the country, and the reason why the foreign trade orders have not recovered greatly is mainly due to the sharp decline of clothing demand under the influence of the epidemic situation. It is very difficult for overseas garment manufacturers to receive new orders, and the orders for fabric producers are few.

The market order is generally higher than last week. A little more domestic trade, foreign trade has begun, mainly exported to the United States. But single quantity is not large, tens of thousands of meters, home textiles mainly. A trade veteran revealed.

Trade friction between China and the US will escalate or affect the recovery of foreign trade.

The US new crown pneumonia is the world's most serious country. Up to now, more than 1 million 640 thousand confirmed cases have been confirmed. It is also very gratifying to hear that the epidemic is so rampant. But the recent US arrest of HUAWEI has made the Sino US relationship worse and the trade frictions escalated. This will exert a subtle influence on textile trade.

Recall that in the year 2019, the most serious impact of Sino US trade friction on textile exports was the reduction in orders for direct exports to the United States, and the export orders all over the world were affected to varying degrees, resulting in a sluggish foreign trade market. At present, foreign trade is just showing signs of recovery. Sino US trade friction will be unfavorable to the recovery of foreign trade, and it will be slow to recover. But the most difficult time has already passed, and nothing can stop the textile people from taking orders.

Domestic market continues to warm up

But follow-up is hard to continue.

From the above situation, the market is indeed getting warmer, but there are still some parts of the market which are not ideal, or there are enterprises that have fallen back last week. A weaving company which mainly produces polyester sheets, Shu Mei silk and Chun Ya textile and so on is introduced: "the market situation is generally low this week, compared with last week, and the heat will not last long, at most for half a month."

This enterprise not only feedback the decline of the market's heat, but also shows that the duration of the heat is not optimistic. Although many companies are in good order at the moment, they still lack confidence in the future.

A trade bosses concluded: "now there are basically no hot products. As long as one or two hot products come out, everyone will rush to do it, and the heat in ten and a half months will come down. Like protective clothing, polyester taffeta and spring Asian spinning are very hot. Dyeing mills basically do these things, and basically they are sent to Vietnam, but we didn't do them because they are difficult to achieve export standards, and later there may be some trouble. "

Without foreign trade orders, factories and workers can not stop easily. In order to maintain normal production and operation, many export enterprises began to focus on the domestic market. According to statistics, in the past month, the total number of Alibaba's domestic trade platform 1688 totaled over 2 new foreign trade plants, with an average of nearly 700 foreign trade factories being settled every day. The turnover of foreign trade factories on the platform has exceeded 22 billion yuan a month. In addition, since last year, at least 32 export oriented enterprises in China are seeking to transform domestic trade.

In the textile industry, foreign trade has turned to domestic trade. We must know that the attractiveness of domestic textile trade has been decreasing in recent years. On the one hand, because of the large volume of foreign trade orders, a variety or even a color has hundreds of thousands of meters, while the domestic trade orders are often single quantity, small dispersion, and many styles; on the other hand, in terms of payment, foreign trade orders often return money in time, while the risks of domestic trade orders in arrears are higher.

Although the advantages and disadvantages of the internal and external trade are very obvious, many textile enterprises only have the way of domestic trade in the absence of foreign trade orders. But so many textile enterprises rush to enter the domestic market, which is obviously not a good thing.

Increased competition pressure

Profits continue to shrink

Compared with the foreign trade market, the domestic trade space is very limited, especially this year is more crowded. The lack of orders for domestic trade is the norm in this year's textile market. Supply exceeds demand and then leads to low price competition.

According to the person in charge of a weaving factory, they are making fabrics such as satin, polyester taffeta, spring Asian spinning and so on, and mainly do the domestic market. At present, there are more than 200 million inventory in the warehouse, and the pressure is very high this year. But the greater pressure comes from the low price sales that return to domestic trade partners, so they have to do the same thing. Now the profits they sell are only a few cents, which is based on the low price of raw materials. Once the prices of raw materials are increased, it is necessary to lose a little bit before shipping.

Not only will foreign trade enterprises return to domestic trade, they will seriously affect the profits of related enterprises, but will also overdraw market orders, so that the domestic market will be rapidly exhausted.

Orders piled up

Rapid attenuation of heat

After the domestic market was controlled, the domestic market was gradually revived. Especially in the recent stage, polyester taffeta, spring Asian spinning, imitation silk, nylon spinning and so on all had a brilliant performance. However, these orders are not as strong as they used to be, and most of them will not be sold well in one or two weeks.

A market for dyeing and finishing plants has been in full load for a while. But in the past week, the order situation has been straight ahead. Only 10 sets of stereotypes have been opened, and 2 workers have changed from "two shifts" to "three shifts".

A trader explained the situation. Two weeks ago, there was a lot of marketing in the dyeing mill, mostly to Guangdong and other places. I thought the market activity could drive a wave of market, but now basically can not see the market live orders, and the whole market is silent again. The main reason is that there are too many people to do the domestic trade now. Whenever there are one or two hot spots, all the companies rush to the market. Orders are quickly divided into clean ones, and the heat quickly falls back.

Generally speaking, the market is still short of orders, especially in the direction of large number of foreign trade enterprises to turn around and begin to enter the domestic trade, which is aggravating the burden of the market. Any order will be quickly digested by the market, and too late to grow. Even a lot of companies are making overdraft orders for the autumn and winter fabrics ahead of May.

The domestic market is not "savior". It is impossible for all textile enterprises to be exposed to rain and dew. If the foreign trade market can not recover in time, the domestic market may even be "bad".