On November 19, according to media reports, shoe giant Baocheng (9904) announced the early cancellation of unpaid leave! !

According to sources, due to the gradual stabilization of operations, Taiwanese employees will cancel unpaid leave from December. In the past, the group's grassroots employees and production line employees took 4 days of unpaid leave a month, and the rest took 6 days of unpaid leave a month.

As a global shoe giant, Baocheng Group has also experienced twists and turns this year. Affected by the epidemic, it not only took unpaid leave, but also launched a wave of layoffs, including 4,000 layoffs at the Hubei plant and more than 2,700 at the Pingzhen plant in Vietnam. The number of employees in the Vietnam plant was reduced from 61,000 to more than 58,000. .

From the perspective of revenue performance, Baocheng's consolidated revenue in October was 22.93 billion yuan, a monthly increase of 8.7% and a year-on-year decrease of 14.7%. After the company's revenue fell at the end of August, it showed a monthly rebound.

As a global sports shoe manufacturer, Baocheng Group's operating conditions have improved, which also shows from the side that orders in the shoe and apparel market are gradually recovering.

Recently, data released by the Bureau of Statistics show that in October 2020, the retail value of clothing, footwear, and knitting textiles in October 2020 is 127.4 billion yuan, an increase of 12.2%; the retail value of clothing goods is 94.13 billion yuan, an increase from the same period last year. 12.1%.

It can be seen that the demand for textile footwear and clothing is improving marginally, regardless of whether it is foreign brands or domestic consumption levels.

Judging from the recent visits to the market, different from the "all-in-one" bearish market in the first half of the year, two voices began to appear in the market. Some trade bosses said that the order situation is still growing steadily, and orders for the end of the year have been received. Of course, some textile bosses said No new orders have been issued yet, and orders on hand are mostly executed until the end of the month.

One month later, the residual temperature of "Double 11" has passed!

In the early stage, under the hype of the "Double 11 stocking season", the entire industry chain from clothing to fabrics to weaving has entered the peak of the market. The market has ushered in a wave of explosive growth. Many weaving bosses said that sales are in the whole year. With the highest value, as the demand for fabrics in down jackets and cotton clothes heats up, manufacturers once again cleared a batch of inventories, alleviating production pressure, and the inventory of grey fabrics in Jiangsu and Zhejiang also dropped accordingly.

After a month, this wave of craze has faded. In mid-November, the grey cloth market once again showed a trend of tired inventories and reduced production starts.

According to the data monitored by China Silkdu.com, due to the lack of new orders in the market, factories with better pre-orders will arrange orders until December, and less will be in late November. Domestic shipments continue to slow down, and export orders are also Due to multiple pressures such as the epidemic, exchange rates, and ocean freight, the market has been improving slowly. Therefore, some manufacturers have reduced their load by about 10%. Fortunately, the inventory pressure of most manufacturers was relieved in October, so manufacturers are more willing to operate at a high load.

In terms of availability

At present, the operating rate of water jet looms in Wujiang and Changxing is 8-9%, Xiao Shaoyuan knitting machines are above 70%, Changshu and Haining warp knitting machines are both above 90%, and many manufacturers are fully operating.

Inventory

Since neither the domestic demand nor the foreign trade market has released a large demand momentum, end customers are cautious in placing orders, and the contradiction of overcapacity of conventional products is prominent. Therefore, the inventory has risen steadily. As of the 20th, the inventory of grey fabrics rose to 41 days, an increase of 1- 2 days.

Can the "cold winter" effect be relayed to usher in another wave of market conditions?

It can be seen from the above data that recent orders have been weak, but textile manufacturers all know that the textile industry that "sees the sky for food" has always followed the guidelines, that is, for the textile textile market, temperature changes have also become an impact on textiles. An important factor in the market. Historically, the cold winter weather has significantly boosted domestic autumn and winter apparel retail.

According to forecasts by meteorological experts, starting on the 19th, the country will usher in a significant drop in temperature. The large-scale rain and snow in the central and eastern regions will also be accompanied by a significant drop in temperature. For some textile bosses who make fabrics in winter clothes, it is The last hope of this year.

"At present, we have two orders for polyester taffetas being delivered one after another, a total of about 100,000 meters," said the manufacturers of polyester taffetas and four-sided elastics: "Now relying on cold winter speculation, I dare not take more orders. I'm afraid I won't be able to receive the payment at the end of the year!"

There are also several textile business owners who are engaged in the foreign trade market that recently both the fabric and the lining of down jackets have a certain amount of movement.

"This year's down jacket and cotton clothing fabric sales have not decreased a lot. If the global cold winter this year, foreign markets will consume part of the finished product inventory, then it will increase the intention to replenish the fabrics of next year's autumn and winter clothing. After all, the development of branded clothing must Take the risk of inventory!" said Mr. Chen, another textile boss.

However, the products used for fabrics in winter clothes are generally polyester taffeta, pongee, nylon or T4, T8 and other fabrics. The current oversupply pattern of these products in the market has not changed, so even if the cold winter effect can In order to bring a wave of replenishment, there is still relatively large resistance in the market to set off a large market.