The Clothing Foreign Trade Industry Suffers The Impact, The Self Rescue Measure Stops As Far As Possible.

Before the Spring Festival, the order delays affect the whole industrial chain. After the Spring Festival, the overseas market is facing uncertainty. Under the epidemic situation, the clothing foreign trade industry is being affected by stages.

"Almost 80% of our first quarter orders can't be delivered on time, and the amount is almost one hundred million yuan." As a responsible person of a clothing company in Shishi, Fujian, Cui Yongqiang (a pseudonym) obviously felt the severe impact of the new crown pneumonia epidemic.

Cui Yongqiang's situation is not isolated in the clothing trade industry, and has been transmitted to the upstream and downstream of the garment export industry chain. Reporters learned that, from dyeing mills, fabrics, clothing production, export trade and cross-border electricity providers, as well as related foreign exhibitions, the epidemic has been affected to varying degrees. Overseas orders such as delay, cancellation, and even claims are frequent.

Self rescue is carried out synchronously. The National Federation of industry and commerce, China Council for the promotion of trade and China Import and export credit insurance company, etc., have issued relevant policies to reduce the losses of enterprises involved. At the same time, many local governments and relevant associations give support to recruitment policies, re employment assistance and financing loans.

"Loss is inevitable. What we can do now is to stop as much as possible and wait for overseas orders." Many practitioners expressed similar views to reporters.

(shooting: Zhongfu net)

Order delay industry is affected by stages

Years ago, Zhang Qinglin (a pseudonym) received a list of foreign spring clothes from the finished traders, who was responsible for providing fabrics. According to the normal process, he needs to finish the fabric at the end of February, and then make it to the factory supplied by the finished trader, and then make it into garments by half a month or so, and then ship it to the United States by sea.

But the epidemic disrupted the whole plan. "We have just started construction now and have been delayed for more than a month. And the matching dyeing factory has not fully recovered, and the progress of fabric production is also not keeping up. If they are produced according to the current rhythm, they will be out of season after shipment to the United States. Zhang Qinglin said.

He is located in Shengze Town, Suzhou City, Jiangsu Province, which is one of the famous textile production bases in China. According to his disclosure, local capacity recovery is less than 50%, and we can not fully promote the operation at present.

From the more than 1000 km away from Shengze town of Shishi, Fujian, local clothing manufacturers also face impact. Cui Yongqiang's clothing company has annual sales of six hundred million or seven hundred million yuan, and its products are exported to Australia and North America. Even though the company's business covers almost all industrial chains, production is still greatly affected.

Cui Yongqiang told reporters: "our factory started in February 10th, which is relatively early in the local market, but the rate is low. On the first day, only 202 people arrived, less than 20%. Better in the near future. We just had some fabric stocks when we just returned to work, but the matching dyeing factories didn't start. Later, around February 20th, the dyeing plant started, but our cloth could not be woven. Because the forefront of the industrial chain weaving workshop, the core force and technicians are from Hubei or key epidemic areas.

In Henan and other places, similar events are also being staged. Henan bonded logistics center responsible person told reporters that during the epidemic, through the channel sent to overseas goods, there is no clothing foreign trade products. According to their understanding, the four cities of Henan Province, Huang Huai, and Xinyang (Shangqiu, Zhoukou, Zhumadian) have great influence on the textile and garment industry base.

Liu Xiangyang, the chairman of the global cross-border electricity supplier, told reporters that the overseas orders which were received seven years ago originally planned to be shipped within the next five days after the Spring Festival, but the epidemic has not been released until now.

It is worth noting that, when the overseas orders were delayed years ago, many garment export enterprises should also pay close attention to the epidemic situation in the overseas market and the impact on themselves.

In a news conference held in March 5th, the Ministry of Commerce said that the World Health Organization raised the global risk level of the new crown pneumonia epidemic to "very high", and the epidemic is spreading all over the world. Affected by this, the global capital market has been down for a long time, and the authoritative bodies such as the International Monetary Fund and the OECD have lowered their forecasts for world economic growth in 2020.

002193.SZ, director of Shandong's secretaries general, told reporters that the overseas market of the company is mainly concentrated in Europe. If the epidemic continues to spread abroad, this business will be affected. The company is mainly engaged in the design, production and sales of worsted fabrics and garments. In the first half of 2019, nearly 40% of the company's revenue came from exports.

Everbright Securities released research report shows that at present, South Korea, Italy, Iran, Japan, the epidemic is relatively serious. Among them, Italy and Japan are closely related to China's clothing industry.

Li Xingqian, director of the foreign trade division of the Ministry of Commerce, told reporters in March 5th that the impact of the epidemic on the trade development of all countries, including China, Japan and Korea, is mainly reflected in the resumption of production, logistics and transportation, as well as supply chain stability. But this effect is temporary and temporary. The advantage of China's complete industrial chain is irreplaceable, and its position in the global industrial chain and supply chain will not change.

　　 Dominoes effect

In spite of the delay in orders, more enterprises are unwilling to give up these orders and the customers behind, thus paying a higher cost.

In the past many years, Cui Yongqiang's company has shipped a number of goods from Xiamen port to Australia and the United States almost every week, and sent them directly to their own logistics storage center. But in the first 20 days of February, local shipping was almost at a standstill. "In February 20th, the port was gradually opened and there was not much frequency." He said.

For those very urgent orders, Cui Yongqiang chose sea to air. "We need to pay a lot more than we used to, regardless of cost."

Unfortunately, more SMEs do not have much strength to operate in accordance with this plan. Liu Xiangyang, chairman of Henan Yu man global cross-border electricity supplier development Co., Ltd., mentioned to reporters that as a foreign trade service provider, the company had almost no shipments to overseas orders. However, because of the delay and refund, the company's liquidity is very tight.

And when the downstream cost increases, it will be transmitted to the upstream. Zhang Qinglin told reporters that a garment trader who had joined him had to deliver fabrics to the Jiangxi area with lower labor costs and make clothes production. Now that the epidemic is affected by various factors, the traders choose to make garment processing locally (Ningbo). But the cost of local manpower is much higher, resulting in a lot of overall cost increase.

However, some clients expressed their understanding. Wang Shichuan, chairman of Fujian World Union garment accessories Co., Ltd., told reporters that the company's capacity has now returned to six or seven. Orders have been affected by the epidemic, and the delivery has been postponed, but there has been no claim for compensation. Data show that the company's products are exported to Southeast Asia and Europe and the United States, is FILA, Anta, Jordan, CABBEEN and other well-known clothing brand designated accessories supplier.

In addition, every February is the highlight of the international fashion week, but the epidemic has already affected the appearance of domestic brands in the international market.

"The epidemic caused foreign trade enterprises not to go out or even to go out. Foreign trade enterprises dare not go out, but overseas exhibitions are held normally, causing great losses to enterprises. With the spread of overseas epidemic, many famous exhibitions in Germany and Italy have been cancelled and even cancelled before the exhibition. Many domestic exhibitors have gone abroad, but there is no exhibition to attend. Pan Jianjun, chairman of 300795.SZ, who focuses on exhibition business, said.

　　 Common difficulties

The soldiers came to block the water. All sectors of the society are trying to restore the loss of garment trade.

At 17:30 on March 3rd, 8 Guizhou employees flew from Guiyang to Quanzhou and returned to Cui Yongqiang successfully. "The Shishi trade union and the Quanzhou trade union have statistics on the situation of staff returning to local enterprises, and coordinate our vehicles and flights to help enterprises resume their work. The government reimbursed 50% of the cost of air tickets for staff returning to work. " Cui Yongqiang said.

According to relevant media reports, Shishi has also promoted the signing of the labor cooperation agreement between the local human resources service institutions and the major labor export areas and the establishment of a labor cooperation workstation. The workstation provides 50 thousand yuan of one-time labor cooperation incentives for Shishi enterprises to import 100 workers (including 100 or more) per year.

According to Zheng Zhiqiang, Deputy Secretary General of Shishi textile and garment industry alliance, the Association appointed 10 secretaries to hook up the towns (streets) of Shishi to guide enterprises to resume work. The local mayor also helped bring the company back to the capital by carrying live goods.

Cui Yongqiang was very impressed by this: "governments at all levels have appointed working groups to guide epidemic prevention and control. Moreover, the government provides policy support for financing loans, and there are waiver of water and electricity charges during the epidemic. This reduces pressure on business operations. "

In addition, there are many other policies for re establishing foreign trade enterprises, with a focus on monitoring the pace of resumption of foreign trade enterprises. In March 3rd, the Henan provincial chamber of Commerce held a press conference that the province allocated 200 million yuan of special funds for foreign trade and economic development to support the "three external" stable production and operation, including foreign trade enterprises. As of that day, the turnover rate of foreign trade enterprises in the province was 37.6%.

However, many things can not be coordinated by local governments alone. A large area of order delays and the adjustment of shipping schedules have led to numerous claims for overseas orders. How to stop loss is a top priority. The information provided by the staff of the China Council for the promotion of trade (CCPIT) showed that on February 14th, 21 and 28, the China Council for the promotion of trade (WTO) held three online meetings to discuss the Countermeasures for exhibition enterprises, foreign trade enterprises and "going out" enterprises against epidemic prevention and control.

As of February 27th, the national trade promotion system has issued 4318 cases of force majeure factual proof for enterprises, involving a contract value of about 330 billion 800 million yuan. Force majeure factual proof is a kind of commercial proof, which can help enterprises to exempt from liability in part or in the absence of strict performance of the contract.

The National Federation of industry and Commerce chose to join hands with China Export Credit Insurance Company (hereinafter referred to as "China credit insurance"), starting from February 12th, and statistics on "going out" enterprises to prevent and control epidemic information. The four issue has been released as of March 3rd. The latest information analyzes the impact of overseas investment activities, and puts forward many suggestions for overseas investment enterprises.

China's credit insurance related correspondent told reporters that during the epidemic, the company introduced ten measures to support support services, including increasing support for export enterprises, strengthening support from small and micro enterprises, and providing financial support through various financial instruments. Since then, the company has issued relevant opinions to further expand the coverage of short-term export credit insurance, expand the short-term export credit insurance policy and the financing scale of small and medium-sized enterprises, and appropriately relax the policy support for claims.

In addition to external assistance, self-help measures can also maximize the stop loss. At present, Miao Lent, who has postponed holding 4 overseas exhibitions, has set his sights on the line. Pan Jianjun mentioned to reporters that the company supports and guides the research and development of online exhibition platform for foreign trade services, supports and guides foreign trade enterprises to use online exhibition products, takes the online trade exhibition as an exhibition, and actively layout the second half of the exhibition.

"A dust of the times falls on a person, is a mountain." In March 5th, Zhang Qinglin sent a message to reporters. He said he will continue to persist in this industry, "the industry will always have a good day."