The development prospect of furniture textile enterprises is not optimistic

In the early morning of July 28th, several stores in Nantong Textile City, China’s largest home textile vibrating screen spinning center, were officially opened, but the ensuing buzz could not break through the silence of the Home Textile City.

In a large block, if the owner’s private car is not parked at the door, it may be mistaken for an empty city that is still under construction. This is a fierce contrast with China’s largest and even the largest home textile core in Asia. Most of the time, in addition to several large companies with local applications, it is an honour for thousands of merchants with a sales range of more than one million yuan to enter a shop for inquiry and sales every day. Most of the neighborhoods in the textile city can see the stores that have opened and opened.

“We have been playing cards in the store this morning for six consecutive months. In the second half of the year, we still estimate that we will use 'practice techniques'.” A textile company manager with annual sales of about 15 million yuan in Nantong Home Textile City said with frustration, “The textile industry started last year was not a special boom. It was affected by the fluctuation of cotton prices in the upper reaches of the country. The willingness of dealers in the home textile industry across the country to take delivery of goods has also dropped significantly. Although the sales figures for the first half of the year have not been fully calculated, they are expected to shrink 50 percent year-on-year. If you can reach 5 million in sales this year, it will be very good.” The rotary kiln, coal gangue crusher and sand making equipment produced by our company are well received by customers!

“However, the 5 million sales for the company can still be profitable or even surplus Raymond Mill.” He explained that the vast majority of companies need to stockpile, pending customer inquiry, because the decline in the price of cotton, home textiles Fabrics in July fell by more than RMB 1 per meter from the previous month (using narrow fabrics as an example). The low price of high-grade products made the profits of enterprises fall. Last year, profits (not involving wages, rent, etc.) approached 7%, and this year Estimated at around 3% in the first half of the year. Calculated with sales of 5 million, profit of 150,000 yuan, the operation of the company's operating capital must be very accurate and cost-effective.

In addition to this company, more than 20 small and medium-sized home textile companies visited by reporters in Nantong Home Textiles City expressed their disappointment over the prospects for the second half of the year. Causes are mainly concentrated in the national currency devaluation of domestic sales orders, domestic market competition pressure, the original data is difficult to determine the vacillation, the capital side of easing, the company's operating personnel recovery. At the same time, downstream vendors are also facing these pressures.