The Critical Moment: How To Find Opportunities For Textile Enterprises

Background: the impact of new coronavirus at the beginning of 2019 at the beginning of -2020

A sudden outbreak of a new coronavirus pneumonia has broken the quiet of the Spring Festival in 2020. It should be a period of family reunion, but it has become a battleground for the whole nation to fight epidemic diseases. Due to the impact of the epidemic, the major textile cluster market and textile factories have to postpone the resumption and opening of the market, which will affect the whole industry chain of the textile industry to a certain extent. In 2020, the production time of traditional textile and clothing will be squeezed in the peak season, and after the resumption of work, there will be a reduction in order quantity and a shortage of operating rate.

In the face of this epidemic, textile enterprises must establish a sense of hardship and overall awareness. On the one hand, they must bear the impact of the epidemic on the whole industry. On the other hand, they should also actively respond to the problem of obtaining more convenience and preferential policies for enterprises in a multi-channel and multi-dimensional way, so that they can feel sad in a certain period of time.

Central policy: the policy of benefiting the small and medium-sized enterprises has been implemented in all provinces, cities, counties and districts.

In order to thoroughly implement the spirit of the important instructions of general secretary Xi Jinping on resolutely fighting the epidemic prevention and control, we should continue to deepen the "three services" and focus on serving small and medium enterprises affected by the epidemic in accordance with the decision making arrangements of the Party Central Committee, the State Council, the provincial Party committee and the provincial government on the prevention and control of epidemic diseases. To support SMEs in building confidence and tide over difficulties, to ensure the normal operation of enterprises and to maintain stable and healthy operation of the economy, the following twenty policy proposals are formulated. Among them, the related policies of spinning enterprises contain the following items.

First, increase support for SMEs to resume work.

(1) supporting enterprises to resume work in an orderly way. Before the start of the Spring Festival holiday to 24 hours before February 9th, the production and supporting enterprises of key epidemic prevention and emergency supplies approved by the local government were repaid by the government. In order to support enterprises to resume work in an orderly way, district and county (city) governments should create conditions to help enterprises solve problems such as centralized medical observation points, reloading charter trucks, transportation of means of production, and so on. (responsible units: districts, counties, municipalities, municipal finance bureaus, Municipal Social Security Bureau)

(two) reduce the factor cost of small and micro enterprises. Accelerate the implementation of new small and micro enterprises to reduce the burden reduction measures, reduce the use of small and micro enterprises electricity, gas, logistics and other costs, effectively reducing the burden of small and micro enterprises. The price of industrial electricity was adjusted in time according to the state policy, and the price of industrial water and natural gas were all reduced by 10% for a period of 3 months. (responsible unit: Municipal Development and Reform Commission, Municipal Bureau)

Two, increase financial support for SMEs.

(three) increase credit support. The relevant banks should make full use of the low cost special refinancing of the central bank, and provide preferential interest rate credit support to key epidemic prevention enterprises. The total number of new loans increased by 150 billion yuan throughout the year, of which more than 90 billion yuan was added. The small and medium enterprises that are temporarily unable to repay loans affected by the epidemic will extend the repayment period reasonably. For small and medium-sized enterprises that are affected by the epidemic but have prospects for development and are temporarily trapped, they should not blindly borrow, suppress loans or break loans. (responsible unit: City Finance Office, pedestrian central Shaoxing branch, Shaoxing silver insurance regulatory branch)

(four) reduce the cost of comprehensive financing. The local financial institutions shall be encouraged to float 10% of the major epidemic prevention enterprises and those affected by the epidemic on the basis of the original loan interest rate for a period of not less than 3 months. Encourage other financial institutions to reduce lending rates for SMEs. The local financial institutions shall, in principle, continue to repay loans to small and medium enterprises which expire before the end of April 2020. The renewal period is not less than 3 months. Other financial institutions are encouraged to carry out loans without repayment. We should give full play to the role of emergency loan funds at all levels to support the lending of small and micro enterprises affected by the epidemic. Cancellation of the anti guarantee requirements of enterprises affected by the epidemic in the government financing guarantee, halving the guarantee and re guarantee fees, helping enterprises to dock with financial institutions, and shorten the time of lending. The policy financing guarantee agency of the whole city undertook 50% of the guarantee for the small and medium-sized enterprises and the "three rural" customers who undertook from February 2020 to July. (responsible unit: City Finance Office, pedestrian central Shaoxing branch, Shaoxing silver insurance regulatory branch)

(five) improve the quality and effectiveness of insurance services. Insurance industry financial institutions open up green channels for claims customers who are in danger during the epidemic period, simplify the claim settlement process, improve service effectiveness, and ensure that the odds ratio is 100%. Insurance institutions are encouraged to provide more preferential and comprehensive insurance services to small and medium-sized enterprises concerned with the prevention and control of the epidemic. Premiums will be reduced by 10% on the basis of the same rate in 2019. (responsible unit: City Finance Office, pedestrian central Shaoxing branch, Shaoxing silver insurance regulatory branch)

Three, increase financial and tax support for SMEs.

(six) to reduce or postpone the payment of taxes. Due to the serious impact of the epidemic on production and operation, it is difficult to pay property tax and urban land use tax, and may apply for property tax and urban land use tax relief. The loss of assets caused by the outbreak of the small and micro enterprises can be deducted in accordance with the law before the enterprise income tax. In view of the small and micro enterprises in the production of epidemic prevention and control materials, we should give priority to the implementation of relevant tax and fee reduction policies. For small and micro enterprises that are difficult to handle the declaration due to the epidemic situation, the enterprises shall apply for the extension declaration according to law. For small and micro enterprises that are unable to pay taxes on time with special difficulties, they shall apply for an extension of tax by the enterprise, and the longest period is not more than 3 months. In view of the small and micro enterprises in the production of epidemic prevention and control materials, priority is given to the approval of the deferred payment of taxes. (responsible unit: Municipal Taxation Bureau)

(seven) deepening the measures to facilitate taxation. Further expand the mailing invoice object, ensure the demand for invoices during the epidemic period, expand the scope of mailing invoice objects temporarily during the epidemic period, and extend the original A and B enterprises to C and D enterprises. We should further speed up the tax refund (Exemption) tax, shorten the tax rebate period, and shorten the average time for the normal tax rebate to 2 working days before the epidemic is lifted. (responsible unit: Municipal Taxation Bureau)

(eight) to delay social insurance premiums and refund unemployment insurance premiums. For small and micro enterprises facing temporary production and operation difficulties due to the outbreak of the epidemic, the social insurance premium can be suspended (the employees' employees still pay according to the regulations), and the relevant payment procedures can be completed within 3 months after the epidemic is lifted. After the time limit is expired, the enterprise will make full payment of the social insurance premium. The period of business suspension does not affect the personal rights and interests of the insured personnel. The small and micro enterprises that do not lay off or lay off workers can return 50% of their actual unemployment insurance premiums in the previous year. For small and micro businesses that face temporary difficulties in production and operation and are expected to resume, insist on no layoffs or lay off workers, the return standard can be determined by 50% of the social insurance premiums paid by enterprises and their employees for 6 months. (responsible unit: Municipal Finance Bureau, Municipal Bureau of human social security, municipal health insurance bureau, Municipal Taxation Bureau)

(nine) increase financial support. The city shall arrange not less than 1 billion yuan of financial funds for special expenditures for epidemic prevention. The key protection enterprises for epidemic prevention and control should actively strive for financial support from higher authorities such as interest discount and other financial policies. The key medical prevention and control materials produced by enterprises should be purchased and stored by the government. We should speed up the allocation of funds for enterprises at all levels and ensure that all kinds of funds are allocated to enterprises in a timely manner. We should optimize the reporting requirements for the special financial funds and increase the support for small and medium-sized enterprises affected by the epidemic. During the period of epidemic prevention and control, the enterprises that produce important emergency supplies for epidemic prevention, and the newly purchased equipment for expanding production, will be subsidized by the finance to 50% of the newly purchased equipment, with a maximum of not more than 15 million yuan. Foreign trade enterprises that assist the government in importing anti epidemic materials are rewarded 10 thousand yuan for each import material of 100 thousand dollars. (responsible unit: Municipal Bureau, Municipal Finance Bureau, Municipal Bureau of human social security, Municipal Commerce Bureau, Shaoxing customs)

(ten) to reduce the rent of small and medium-sized enterprises. For small and medium-sized enterprises that rent state-owned assets, the 2 months' rent should be waived. For small and medium-sized enterprises with difficulty in paying funds, the rent can be postponed. The specific time limit for collection is determined by the two sides. The government's technology business incubator and public space create a 3 month rent reduction for the lessee's small and medium enterprises and teams during the epidemic. We should encourage non-governmental enterprises to incubate technology and create space to reduce rent for small and medium enterprises and teams that are leased during the epidemic period. If they are waiver for more than 1 months, give priority to policy support. (responsible unit: City Science and Technology Bureau, Municipal Finance Bureau, municipal SASAC, Municipal Service Center)

(eleven) increase employment recruitment and training support. The promotion of employment recruitment activities has shifted from offline to online. Public employment service websites at all levels during the epidemic period provide free recruitment services for the vast number of employment enterprises. For all kinds of enterprises affected by the epidemic, during the downtime, the employees (including the dispatched workers who work in enterprises) participate in all kinds of online vocational training. Platform enterprises (electric business enterprises) and new business enterprises can be referenced. (responsible unit: Municipal Bureau of human social security)
Four, increase export support to SMEs.

(twelve) the cost of exhibitors will be subsidized at home and abroad. Domestic and overseas exhibitions that are included in the annual key supporting catalogues are not allowed to participate in the exhibition because of the causes of the epidemic. 100% booth fees are granted to the exhibitors. Key exhibitions are supported outside the catalogues, which are certified by the recognized exhibition organizations and give the 50% booth fee to the exhibitors. (responsible unit: Municipal Commerce Bureau)

(thirteen) increase the premium subsidy for export credit insurance. The insurance premium for export small and micro enterprises for policy export credit insurance will be fully subsidized. We should increase the coverage of small and micro enterprises, and ensure that they should be insured. (responsible unit: Municipal Commercial Bureau, Shaoxing silver insurance regulatory branch)

Five, increase the support of SMEs in related industries.

(fourteen) help small and micro enterprise parks. The small and micro enterprise parks that reduce rent for small and micro enterprises during the epidemic period shall give priority to policy support. The amount of support is first months' rent exemption from the local epidemic prevention and control, and half of the second and third month rent free allowance. The maximum amount of support for each small and micro enterprise park is not more than 100 thousand yuan. (responsible unit: Municipal Bureau, Municipal Finance Bureau)

(fifteen) support agriculture and fishery production. Subsidies should be given to breeding enterprises that cause increased production costs, unsalable products and difficulties in production and operation. The agricultural enterprises involved in the storage and processing of local agricultural products such as vegetables, poultry and aquatic products during the epidemic period shall be supported by financial discount. During the epidemic prevention and control period, fishing vessels that did not go to sea due to the need for epidemic prevention and control were regarded as normal production operations and actively striving for state subsidies. (responsible unit: Municipal Finance Bureau, municipal agriculture and rural Bureau)

(sixteen) support technology oriented SMEs. According to the actual needs of enterprises and health care institutions, we should establish an emergency mechanism for Municipal Science and technology projects in the areas of public prevention, inspection and testing, drug research and development, and clinical diagnosis and treatment. Through the use of innovative vouchers, third of the technology SMEs are commissioned to carry out test analysis, product design and other services. The amount of innovation voucher is increased from 50% to 100%. (responsible unit: City Science and Technology Bureau, municipal health and Health Committee)

(seventeen) support cultural and creative enterprises. In the 2020 special fund for cultural industry approved by municipal finance, 15 million yuan was cut to support the creative enterprises that were seriously affected by the epidemic. (responsible unit: municipal Party Committee Propaganda Department, Municipal Finance Bureau)

(eighteen) supporting tourism and other related enterprises. In the 2020 special tourism development budget approved by the Ministry of Finance and tourism, the two level Wen Guang Tourism Department of the city and county has cut out 10% special subsidies for tourism and those directly related to restaurants and hotels. (responsible unit: Municipal Finance Bureau, City Wen Guang Tourism Bureau)

Six, increase the legal service support for small and medium-sized enterprises.

(nineteen) protect the rights and interests of civil and commercial litigation during the outbreak of small and medium-sized enterprises. In accordance with the law, the limitation of interests of the parties during the epidemic prevention and control shall be protected according to law. If the parties concerned are directly affected by the epidemic, they can not exercise the civil claim right in time, and the relevant provisions on the suspension of limitation of action shall be applied in accordance with the law. We should properly identify civil liability for defective performance of small and medium-sized enterprises caused by epidemic prevention and control. If a party or a party fails to perform the contract due to the outbreak of the contract, or if the performance of the contract has a significant impact on the rights and interests of one party, it may take into consideration the parties' agreement and the epidemic situation to properly apply the relevant provisions in accordance with the law according to the factors, such as the reasons, time and degree of the difficulty in performing the contract or performing the contract. Prudent enforcement measures should not be taken for compulsory measures such as sealing up, freezing or seizure of funds and materials specifically for epidemic prevention and control. (responsible unit: City Intermediate Court)

(twenty) launching special legal services. To implement the special action of free services for small and medium-sized enterprises, we organized the city's law firms to carry out twinning services with small and medium-sized enterprises without legal counsel, and implemented the "point to point" service mode; set up the "WeChat Group E service for SMEs", which is the main body of SME managers and paired firms, providing free legal services for the pairing enterprises; and setting up an epidemic prevention and control public welfare lawyers service group. Small businesses provide legal aid and related legal advisory services. It is free to issue a proof of Force Majeure for a foreign trade enterprise which is unable to start work normally or fails to fulfill the contract on a regular basis. (responsible unit: Municipal Judicial Bureau, Shaoxing Municipal Committee of CCPIT)

The above policies and measures are applicable to small and medium-sized enterprises designated by the four departments of the Ministry of industry and information technology and other small and medium-sized enterprises (the Ministry of industry and information technology joint venture [2011] 300), which are valid for the first time from April 30, 2020 to the beginning of the major public health emergency response. The central and provincial governments promulgated relevant support policies and implemented them accordingly.

Experts recommend: deep ploughing industry pain points, solve the practical problems of the industry.

Xu Heping, vice president of Zhejiang textile industry design and Research Institute, put forward the following seven suggestions for enterprises to help solve the practical problems of the industry.

First, the situation is grim, the trade and production of the textile industry itself is over, the speed of the transformation and upgrading of the epidemic is accelerating, the stores are delayed, and there is no way to carry out offline transactions. Prepare for the outbreak of consumption in May.

Two, small and medium-sized enterprises, especially agents, need to prepare for three months without any business preparation, and manage capital flow, especially inventory. Try not to quit and survive the hard times.

Three, do well the work plan during the period of postponed reemployment, find out the survival state of oneself, and find out the targeted solutions. Main countermeasures and suggestions: actively develop online marketing reserves customers and consumption potential. Take this opportunity to develop online marketing and share e-business learning and application. Turn challenges into opportunities. For enterprises in the long and in-depth textile industry business model iteration, refining consumer groups and gradually achieve C-TO-B personalized customization and sales services, to achieve upgrading.

Four, discuss with the landlord the rent reduction, through the waterproof fish culture, to achieve excessive difficulties, long-term win-win.

Five, actively apply for loans from national small and medium enterprises, and arrange for people to apply for loans for the epidemic as soon as possible.

Six, expand foreign trade channels. Five, the printing and dyeing factories and textile factories should help the agents to lighten their burden and solve their difficulties.

Seven, enterprises can slim down by borrowing opportunities, increase their industrial design and technological innovation, and enhance their competitiveness. It is hoped that enterprises can emerge from pessimism, because success often belongs to optimists. Confidence is more important than gold. When we face the sea, we will have spring blooming days.

Top priority: self rescue of textile enterprises

Under the epidemic, sales pressures, labor costs, warehousing and rental costs are driving many enterprises to think about self rescue measures. During the 03 years of SARS, Taobao was founded, and the Jingdong began to rise in 04 years. It is believed that the epidemic will also bring changes to the whole industry. The problem is inevitable, so we need to find solutions actively.

1. store business online, giving full play to local instant distribution advantages. In the short term, offline stores can online store business through small programs and social tools to provide customers with "instant delivery" services to make up for the lag of cross city logistics. In the next few months, the digital transformation of brand stores is imminent, and the whole channel of online and offline channels can be quickly increased, and the ability of supply chain management can be improved. Long key.

2. aim at social retail and play the value of shopping guide. During the epidemic period, retail stores face two major problems: first, the passenger flow under the line is almost 0; brands need to be drained for stores; two, shopping guides have nothing to do, but labor costs and rent payments are paid. Faced with such a dilemma, how to fully operate the private domain traffic will be the key to breaking the situation. By means of social advertising, live broadcast, distribution and other digital operation methods, brands can extend shop sales time, expand store sales scope, and solve the problem of access to and from stores. At the same time, training guide shopping learning, using social networking tools to get customers, online sales and services. After the outbreak, who can widen the sales channels, and quickly create new products, and provide consumers with the most needed products based on different scenarios, who will be able to reduce the losses caused by the epidemic at the fastest speed.

3., the electricity supplier platform is particularly important. Selecting the best platform is the key. "Global textile network" is an authoritative textile industry portal. It has been committed to providing the most valuable professional information services for Chinese and global textile enterprises, and promoting the development of international textile trade. Owns more than 40 members of the textile industry, gathered more than 110 thousand buyers, 1 million 200 thousand PV per day (website visits). Customers cover a wide range from more than 80 countries in the world, covering 17 textile fields, including raw materials, fabrics, home textiles, clothing and so on. The website has the advantage of powerful information: there are 100 thousand industry news, 400 thousand supply information, 215 thousand procurement information, 97 thousand company libraries, and 113 thousand product libraries. China's Textile City, the largest textile market in Asia, which has an annual turnover of over 27 billion 600 million, has the most abundant information resources and has set up more than 60 Information alliances across the country. Cooperate with economic and trade organizations, trade associations, textile institutions, exhibition organizations, etc. to provide professional and trade services in various forms under the Internet and offline.

Conclusion: in the crisis, opportunities will come and spring will come.

All things have two sides. Crisis does not mean disaster. Excellent entrepreneurs can even look for opportunities in crisis. But the "machine" in the "crisis" will not come out of nowhere. It needs "understanding" and "seeking" to explore and consider comprehensively. Leng Youbin, chairman of Feihe dairy industry, once said, "good entrepreneurs should be predictable, adjust their strategy and resource layout quickly according to market experience and sensitivity."

In 2003, SARS raged, as in 2020, many countries issued travel alerts to China, and businessmen who came to China to do business declined sharply. Many foreign businessmen chose to trade online because they could not come to China. At that time, the website of the authority of the textile industry - the global textile web access rose, the growth rate of membership registration increased by 2.53 times, and the volume of trade reached by customers through online information on the global textile network exceeded US $2 million. Jiangsu Changshou City Zhongcheng Knitting Co., Ltd. signed a foreign trade contract with a North American customer through online information. Its initial turnover amounted to 400 thousand US dollars. The online trading volume of Shaoxing Xinglong textile Xinghui Textile Co., Ltd. is 1.6 times larger than that of the same period last year. Statistics show that during the SARS epidemic period, online trade has increased by nearly five times than usual. Some hesitant foreign customers have also reduced orders for foreign trade by issuing orders online.

During the period of SARS, the realization of the diversification of foreign trade market is worthy of reference from our textile enterprises, such as promoting new trade mode, giving full play to the role of e-commerce, carrying out online promotion and online transactions, striving to improve export performance rate, and actively strengthening contacts with customers through fax, telephone and electronic mail, so as to maintain or resume business in a short time. We should use all kinds of information network platforms and overseas intermediaries to expand online publicity and promotion efforts, so that foreign trade enterprises can win more orders.

This sudden outbreak may be an overwhelming force for all textile enterprises. The adjustment of the industrial structure, the "e-business" of the trade mode and the "off-site trading mode" will be popular. Of course, the "retaliatory rebound" after the end of the epidemic is also expected. Finally, Peng Jianfeng, chairman of the cornerstone management consulting group, made the end of the 64 character policy for small and medium enterprises: 1., strengthen confidence and self protection; 2. hold together to keep warm, spend the time together; 3., telecommuting, flexible work, 4. task subdivision, comprehensive incentive; 5. throttling open source, cash security; 6. maintaining customer sentiment, binding large households; 7. flexible employment, harmonious labor and capital; 8. insight into changing circumstances. Big epidemic machine.

May the textile enterprises struggling to survive in this epidemic go through this gate of hell, and our spring will surely be before us.