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    How Can The Foreign Trade Enterprises Own The Global Economy Or A Temporary Shutdown?

    2020/3/26 11:53:00 0

    Foreign Trade Enterprise

    With the continuous fermentation of foreign epidemic situation, the number of confirmed cases has been rising. Many countries have taken emergency measures such as sealing up the city, sealing up the country and stopping work to cope with the spread of the epidemic. This has also led to a temporary shutdown of the global economy. Some experts and scholars believe that the epidemic poses a risk of economic recession in the world.

    Thousands of orders have been cancelled, Bangladesh's economy has been battered by the outbreak.

    Rubana Huq, chairman of Bangladesh garment manufacturers and Exporters Association, recently released LinkedIn tweets, as follows:

    She wrote: so far, a loss of US $1 billion 500 million has been generated, and brands have cancelled or postponed orders. We do not know what to do tomorrow. The brand that became partner last month has become a stranger.

    She said that as many as 1089 orders from Bangladesh clothing factories were canceled, which would severely hit the country's economy. Huq has shouted to share the crisis and said: "in case of emergency, we can accept deferred payment."

    Bangladesh is the largest garment exporter after China. The crisis will be more widespread for Chinese exporters. The new crown epidemic has just subsided in China, and a surge of retreating tide will hit foreign traders.

    At present, the international market is largely cancelling or postponing orders, and the world economy or the problem of lockout.

    Primark, the largest fashion retailer in the UK, cancelled all orders.

    On March 22nd, the famous British parity fashion chain brand Primark has cancelled orders for all suppliers that have not yet been delivered, which stipulates force majeure clauses in the contract and relies on force majeure clauses to cancel orders.

    After the outbreak of the British epidemic, the group announced that it was expected to close its Primark20% stores under the influence of health events, which now account for 30% of Primark's sales and expect that these stores will have a 190 million impact on sales in the next four weeks.

    Nike, Adidas, UNIQLO and other apparel giants shutting down stores.

    The shops are closed, and consumers are locked up at home. How can they be sold? Please pay attention to the operation of the following major customers, especially if there is any problem in their financial position, be sure to follow up the progress of the order in time to ensure the safety of the goods.

    Sports giant Nike announced the closure of all offline retail stores in the US on March 15th, with a planned recovery date of March 27th. Nike retail stores in Canada, Western Europe, Australia and New Zealand have been closed since March 16th, at least until March 27th.

    In March 17th, Adidas announced that it would temporarily close Adidas and Reebok stores in Europe and North America in order to contain the spread of the new crown virus. European stores will be closed in from March 18th to 29th, and stores in the US and Canada will be closed in from March 17th to 29th.

    In March 17th, UNIQLO's parent company, Japanese retail business group, announced that it would temporarily close its 50 stores in the United States.

    In March 17th, L Brands Inc., the fashion group of the United States, said that due to the spread of the epidemic, the Victoria s Secret, the fashion brand Pink and the bath brand Bath & Body Works will be closed in all retail stores in the United States and Canada from March 29th to March 29th.

    In March 18th, H&M, the world's second largest apparel retailer, announced that it would temporarily close all its 460 stores in Germany and all 590 stores in the United States. It has closed all stores in Italy, Poland, Czech, Bulgaria, Australia, Luxemburg, Bosnia and Herzegovina, Slovenia and Kazakhstan and some Greek stores. H&M will also close all stores in Canada, Portugal and Belgium in the future.

    In March 18th, IKEA announced the closure of nine national stores, including Spain, Italy, Germany, the United States and Canada.

    In March 21st, Zara's parent company, Spanish fast fashion brand Inditex, closed 3785 stores in 39 countries and regions around the world. Among them, all Inditex stores in Spain are closed.

    In March 23rd, US consumer electronics retailer best buy announced that it would close all stores.

    ...

    How to avoid risks in textile foreign trade enterprises

    The docking list of textile enterprises is bound to be more cautious. Even if there is an order, it is necessary to consider whether or not the follow-up will be cancelled.

    Combined with the characteristics of most foreign trade, it is recommended that:

    No foreign trade orders without deposit can be easily answered, or try to take reliable insurance, that is, to support customers and transfer risks.

    If customers have been selling on credit, they can tell customers that this new crown pneumonia causes tight funding for raw material manufacturers, and only accepts cash orders.

    We must confirm the order that we have already produced.

    Avoid using the expression "not even this list". If customers fail to reply, you will be able to ride a tiger. It is suggested that "it is understood that the new crown pneumonia has a serious impact on your country. If there is any problem with your order, transportation or sales, you will not be able to confirm the cancellation within three days." In this way, the customer is forced to reconfirm the contract in case of the outbreak, so as to avoid the "force majeure" claim for breach of contract in future.

    If we have already delivered the goods and have arrived in the accounts period, we must pay close attention to the collection of money, and the obligation to pay money will not usually fail because of the epidemic situation.

    If the customer takes this excuse, it is likely that the other side already has financial difficulties. Given the time limit, the other party can not pay the consideration of cargo control, return and so on.

    Export enterprises are advised to comb the risk of stock affected by the epidemic.

    We should pay close attention to the transportation of goods, and consult with freight forwarders and shipping companies to deal with the customs ban that may be issued. We should strengthen the collection of foreign exchange receipts payable by buyers.

    (I) advise exporters to communicate with buyers in time for goods not yet shipped.

    We should arrange the delivery time reasonably and pay close attention to the risk of rejection and default that the buyer may have in case of epidemic prevention and control.

    It is suggested that exporters should make prior arrangements when negotiating new contracts.

    Through force majeure and property reservation clauses, the risk of new crown pneumonia outbreak may be agreed in advance, so as to avoid or reduce the uncertainty caused by the epidemic.

    New contract is appropriately relaxed.

    For buyers whose business is really affected by the epidemic, they may consider relaxing the payment term in the new contract, giving the buyer a certain buffer period.

    During the epidemic, it is recommended to keep records of the communication with buyers.

    In particular, it involves the confirmation of debt and debt, the repayment of debt, the collection of debts, the WeChat chatting records, etc., so as to provide a reference basis for the quick settlement of claims in the later stage.

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