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Restricted by many factors, crisis and opportunity coexist in textile industry this year

Restricted by many factors, crisis and opportunity coexist in textile industry this year

News Center
Release time:
2019/02/25 11:12
Under the background of weak  global economic growth, insufficient market demand and constraints of resources and environment, problems such as productivity rebound, foreign trade difficulties and soaring costs are becoming a huge obstacle to the development of textile industry. Especially  for the textile industry, 2019 will be a year  of  crisis  and  opportunity.
Outside grey cloth production capacity continues to expand.
With the improvement of environmental protection and the promotion of supply-side reform, in recent years, the relevant clusters in many textile provinces have issued policies not to increase production capacity, but also to eliminate and transfer backward textile production capacity. However, in the process of "Changing Dragon for Bird", the pattern of industrial transformation and resource integration should have been formed, but in northern Jiangsu, Anhui, Jiangxi, Hubei and other places, new factories sprang up like mushrooms after a spring rain, which has a great impact on the market.
At present, this sign has begun to emerge in the Jiangsu and Zhejiang markets. "Recently, there have been a lot of foreign sources in the market, coupled with the market began to weaken, feeling that the supply is not as tight as before." Industry insiders analysis, whether downstream demand can absorb the new capacity of the market, undoubtedly become a difficult problem to control the future market. If the capacity of foreign grey fabric continues to expand, if not digested downstream in time, the price war may reopen in 2019.
Price advantage is gone forever
As for the current situation of foreign trade, some people in the industry have used the word "endure" to describe it vividly. Past days of seizing the opportunity by relying on price advantage are gone forever. Nowadays, with the rising cost of labor and the weakening of international market demand, the textile and foreign trade industry has the tendency of "being cheaper and older".
In addition to the greater impact of Sino-US trade frictions, due to the rising costs of labor, raw materials and other factors, the weakening of international market demand and the lack of innovative capabilities of enterprises, the trend of decline in traditional foreign trade orders and fragmentation still exists in 2019.
However, due to the transfer of textile industry, the garment industry in Southeast Asian countries is developing continuously, but the development of local supporting industries takes time, so the international market still needs to import a large number of raw materials such as yarn, grey cloth and fabrics from China. So overall, the fabric foreign trade market in 2019 is not very clear.
Spot trading has many advantages
At present, with the increase of foreign technical trade measures and the intensification of domestic competition, the contradiction between supply and demand in the market is becoming more and more prominent. However, in such a severe market environment, the market share of some world-famous brands has not decreased, but has become larger and larger, and the space for non-brand enterprises to survive is becoming narrower and narrower. Therefore, it will become unprecedented important and urgent to build up a good brand image in 2019.
Industry experts reminded enterprises that in addition to improving product quality and establishing intellectual property protection mechanism, the establishment of brand strategy also needs to see that small and medium-sized fabric printing and dyeing enterprises are facing rare development opportunities due to the wide range, fast speed and low cost of Internet brand promotion and the increasing purchasing power of the mainstream consumer groups. Relevant enterprises can adopt differentiation strategies and new ones. Media propaganda, innovation and optimization of products and other aspects vigorously develop their own brand.
The market atmosphere of dyestuffs has improved
Looking back on 2018, China's dyestuff market has been operating at a high level. After the stop-fall and recovery in 2016 and 2017, the dyestuff market has made a good repair for the collapse of the industry in 2015.
Looking ahead to the Chinese dyestuff market in 2019, the declining start-up rate may be repaired. In the fourth quarter of 2018, parking factories in northern Jiangsu began to resume gradually. It is expected that after 2019, the effective production capacity of dyestuffs in northern Jiangsu will be restored, and the industry start-up and production supply will gradually increase.
At the same time, a number of large-scale dyestuff relocation and expansion projects are gradually coming to an end. Some projects are expected to release new capacity in 2019, which will further lead to loose supply in the dyestuff industry.
In fact, no matter external or internal factors are terrible. If enterprises want to get rid of confusion and break out of the encirclement, they must pay attention to the market situation and related policies in time. The most important thing is to be steady and steady, and never go too far.