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    Zhejiang'S Textile And Garment Industry Is Affected By The Epidemic.

    2020/2/8 21:05:00 0

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    Since the spread of the new coronavirus, Zhejiang province has been deeply affected. As of press release, there are only two provinces in Hubei province except the province of Hubei. The number of confirmed cases is over 1000. One of them is the listed company in Zhejiang province.

    "Clothing enterprises have obvious seasonal characteristics, the consumption decline during the Spring Festival holiday mainly affected the consumption of spring clothing." Pang Chaoran, an Associate Research Fellow of the international trade and Economic Cooperation Research Institute of the Ministry of Commerce, introduced to China net finance, "if the epidemic spread unsuccessfully to 3-4 months, after the end of the epidemic, the focus of consumption is on summer clothing, and enterprises are afraid to suffer certain losses."

    It is understood that affected by the epidemic, Zhejiang province launched a public health emergency in January 23rd. The bustling commercial streets, shopping centers and large commercial shops have been closed down. This is undoubtedly a major blow to the garment industry.

    It is worth noting that in response to the epidemic, some textile and garment enterprises began to "go out of business." There are investors on the interactive platform for Georges white question in Zhejiang. Does the company participate in the production of protective clothing? George White replied: "the company's business scope does not include the manufacture and sale of protective clothing. In the face of the shortage of protective materials in the epidemic situation, the company has made full use of the advantages of garment enterprises and actively participated in the production of non medical protective clothing (production qualification and resources), and planned to produce 100 thousand sets. The company took the initiative to assume the social responsibility of an enterprise, and this batch of non-medical protective clothing was donated free.

    In addition, the news bird dongmi also said on the interactive platform: "in order to meet the government's requirements and obey the unified deployment of the government, the company has made timely deployment of raw materials and personnel through the subsidiary Shanghai Bao bird Clothing Co., Ltd., and has gone all out to do the production of materials and carry out the production of general protective clothing. At the same time, we will carry out production transformation and plan to apply for the qualification of a class of medical devices, and do our best to take part in the epidemic prevention and control. The company's headquarters in Wenzhou also basically has the production capacity of general protective clothing, which will be arranged according to the needs of local governments.

    As for the progress in the production of protective appliances and the impact of such appliances on the company, China net finance sent a letter to the above companies, but no reply was received before the deadline.

    In response, Pang Chao ran, in an interview with China net finance, said that during the epidemic period, some textile and garment enterprises increased production of non-woven fabrics and other related products, made up for the supply of intermediate materials such as masks and protection, and rapidly expanded their production capacity, and achieved good economic and social effects. In addition, some garment enterprises carry out diversified operations, and their subordinate subsidiaries involve in the production and operation of pharmaceutical products and equipment. There are also some enterprises that are highly internationalized and vigorously coordinate relevant international medical supplies during the epidemic period. Most of these practices are recognized by the capital market.

    On the platform of the stock bar, many investors have praised the enterprises that have changed their production protective clothing: "companies with social responsibilities" and "praise for your company's nameless dedication". However, enterprises still need to face sales pressure, labor costs, warehousing and rental costs. Therefore, investors have asked how much the epidemic affects the clothing industry.

    Pang Chaoran told China Internet Finance: "as soon as the epidemic is over, the economic and commercial order will be restored to normal level as soon as possible. Judging from the experience of SARS, the judgement of the end of the epidemic is mainly based on the number of new confirmed cases. After the end of the epidemic, the approximate rate of consumer products will usher in a rapid recovery and compensatory growth. But taking into account the obvious seasonal nature of clothing enterprises, the consumption decline during the Spring Festival holiday mainly affected the consumption of clothing in spring. If the epidemic situation can be effectively controlled in February, the clothing inventory in spring can be released to a certain extent, and the main enterprises will receive the compensation for their revenues. If the epidemic spread to 3-4 months, after the end of the epidemic, consumption will focus on summer clothing, and enterprises are afraid to suffer a certain loss.

    Source: China net financial writer: Guo Meicen

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