The prosperity index of April 2023 closed at 1307.75 points, 5.86% higher than that of last period. This month, the sales of textile markets fell month-on-month, the textile circulation market fell, the orders of printing and dyeing enterprises shrank month-on-month, and the output of textiles fell month-on-month, which led to a slight decline in the overall prosperity index for this period.
The market entered April, and it was not far from the closure of the textile market. Before the end of the year, increase sales as much as possible, speed up payment collection, and reduce product inventory became the main business content of merchants in the textile city market. Of course, most of the merchants have begun to plan for next year's work. As the winter and spring seasons are about to enter the replacement, the research and development of innovative products of some merchants has also entered a climax stage. In addition, textile production enterprises are also facing the pressure of production conversion, coupled with environmental protection, energy saving and other requirements, the cost pressure of enterprises is increasing, and the innovation of enterprises needs to be continuously improved, so as to drive the overall prosperity index in April to rise slightly.
Market varieties change seasonally and prosperity rebounded
Although the winter sales of textiles in the last month of this year came to an end, some orders still continued in April. However, with the promotion of the early spring product market at the end of last month, the market in China Textile City is about to enter a period of change. During this period, most business operators started preparations for clearing inventory and reducing credit accounts. The main reason is that they did not have enough information on the short-term market conditions before the year, so they reduced cost investment, and hoped that the market could start again after the year.
Near the end of the year, China Textile City is not far from the market closure, and the market has gradually become thinner. In the coming week, due to the year-end settlement and the increase of various expenses, market operators will face the problem of tight funds. The main purpose of recent market sales is to reduce inventory as much as possible and quickly withdraw funds. At the same time, for the short-term market transactions before the end of the year, most business operators expressed that it was difficult to accept orders, and they prepared to close their doors in advance. The sales prices of various fabrics in the market will be significantly reduced, the number of market orders will basically end, and the increase in the number of spot purchases will not be too much.
The domestic market promotes enterprises, and production indicators increase slightly
Before the end of the year, with the reduction of market circulation and reduction of foreign trade orders, the production prosperity index of textile enterprises around China Textile City dropped significantly. The gradual weakening of market procurement has led to an increase in corporate inventories, and the replacement of foreign trade orders has caused more costs in the production process of companies. At the end of the year, textile production enterprises began to gradually reduce their internal and external orders, and turned to a business model that mainly completed existing orders. In the next month, the vast majority of enterprises will speed up the shipment of existing orders and reply to increase the production capacity of enterprises in order to maximize the efficiency of enterprises.
The sales of summer fabrics have gradually taken up a major share of market circulation, and manufacturers are well prepared for the production of summer fabrics. Many enterprises have made great efforts in new thin types and printed fabrics. Since these two types of types have greater profitability than plain colors, they are gradually becoming hot spots in the summer market. Especially the cotton and linen varieties suitable for summer wear are the focus of market procurement for domestic sales clothing enterprises. As the supply and demand sides maintain the same focus, the sales prospect will be greatly improved, which will drive the overall production boom to rise.
Since May is the early stage of summer sales, most merchants and enterprises in the market regard May as the vane of sales in the first half of this year. At the same time, the sluggish market sales volume in March and April will also promote the market demand to be fully improved in May. The production enterprises of various varieties have high business expectations for this month and sufficient production confidence. It is expected that the production and operation conditions in the future market will be significantly improved.