In 2018, the textile industry as a whole showed an inverted V-shaped trend, with a turning point in the middle of the year. Affected by the market environment, the overall situation of the industry in the second half of the year was weak, and the upstream and downstream cotton chemical fiber raw materials and clothing industry also suffered in the second half of the year. At present, the price of cotton and the industry market have rebounded in 2019. However, the industry situation in the whole year is still unclear. How can textile people respond to possible market shocks?
Under the premise of unstable market, many large textile companies are actually better off, and SMEs are particularly affected. In the second half of the year, the industry concentration has been rapidly improved, and some enterprises that mainly order production are eliminated.
The reason is that in addition to large capital flows and more market resources, large textile companies have more advanced management ideas and equipment. To give a simple example, the same is the production of a piece of fabric. The combined cost of large enterprises, including manpower, raw materials, and depreciation, is only 80% or even lower for small businesses. Mass production requires cost, but many links can be replicated for small and medium-sized textile companies.