Impact Of Textile And Garment Industry Chain: Release Pressure Has Been Released, Resumption And Resumption Of Production

Domestic epidemic is gradually controlled, and epidemic spread in some parts of the country.

Since the end of 2 in China, the number of newly diagnosed cases has decreased significantly, and 52109 people in the country have been cured and discharged. The epidemic situation in Hubei province and other provinces showed a good controlled trend. However, the epidemic situation began to spread. The total number of confirmed cases in South Korea, Japan, the United States, Italy and Iran was 125-5300.

Downstream businesses: most stores are open for business, and electricity providers are slightly affected.

The passenger flow of the Spring Festival is down sharply. Most brands close more than 50% stores, which have a greater impact on spring sales. The growth trend of online sales has also slowed down, or due to the weakening of consumer demand and logistics, but it is better than offline performance. At present, most of the clothing brand stores have resumed operation, and the brand is actively moving online to make up for the losses. It is estimated that Q1 sales will reach 6-7 of the original plan.

Upstream enterprises: shutting down, resulting in shortage of supply, leading to resumption of production and rush orders

The resumption of manufacturing enterprises is generally delayed for one to two weeks, and the actual rate of re production will still take a period of time to reach a higher level after the resumption of work, and the recovery rate of large enterprises is relatively high. Due to the high proportion of China's textile and apparel exports in the world and the upstream of garment manufacturing enterprises in Southeast Asia, the delay in the resumption of work has also affected the supply of other apparel production industry chains around the world. Based on the above, we expect that the suppliers who are orderly managed, dispersed globally and have controllable raw materials are the least affected.

Cross border transfer: supplementary medical supplies, but performance contribution is hard to predict.

Some enterprises change products such as masks and protective clothing, and most of them are used for donation and government purchase and storage. They are subject to the uncertainty of raw material supply and price, the uncertainty of actual production capacity and the output of production. Related stocks in the epidemic situation during the performance of outstanding, most companies in a month or more time to get the 20%-50% increase.