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Weaving company profit 5% VS trading company profit 20%?!
Today’s textile market is indeed very difficult for weaving manufacturers. New grey fabrics are produced on the machine every day, and this speed is much faster than the delivery speed. The more stocks are accumulated, the more capital is invested. But capital is an important factor affecting the operation of an enterprise. Once the cash flow is difficult, production is cut, production is stopped, and inventory is sold at low prices. It becomes Wei Yi's way out.
But selling at low prices is actually not a good thing. Many textile bosses said that selling at low prices has disrupted what the textile industry should have been. Many selling prices are even more destructive, but they can only be sold at low prices if the inventory cannot be cleared.
What's more deadly is the low price selloff and no one cares...
In terms of profitability, the weaving factory is just selling white powder and making money for selling cabbage. This year's weaving enterprise grey cloth sales profit is very meager, and there are not a few who sell at a loss. Taking ordinary polyester taffeta and pongee as an example, one meter can only earn 0.05 yuan, so the profit margin of conventional varieties is only about 2%-5%. This year, the profit margins of trading companies have increased to some extent. The price of grey fabrics of most specifications has dropped by more than 30%, and although the price of fabrics has dropped, it may only drop by 5%-10%. According to the reaction of some trading company bosses, the profit margin of fabrics this year can reach 20%-30% (this data only represents a point of view, not the majority of trading companies!)
The comparison of the two profit margins shows that the trader's life this year is relatively easy, which is why more and more textile bosses tend to do pure trade.
Nowadays, cloth is the least valuable in the textile market. Weaving mills large and small have stocks ranging from several hundred thousand meters to several million meters. Although the inventory can only be cleared by selling goods at low prices, this method is still not a long-term solution. Faced with the full inventory, the textile boss is also broken. The market continues to decline, and there may be more textile bosses in the future. Started to cut production or even stop production. The market in the second half of the year is hard to say...
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If you want to know more product information, please contact: Mr. Zhu 13706796423 Website: http://mengyuehaishen.cn/En_index.html