Foreign Textile And Garment Enterprises Under Pressure: Refund Or Increase?

The measure of return is the productivity of an enterprise. A trade dealer who is in charge of the US brand told reporters that after China resumed in February, he had seven brands of orders on hand, facing four enterprises, and what he did was to start from the beginning of February, and follow up the number of employees returning to work in every enterprise every day, so as to decide who to call the order. "Whoever can do it will give it to anyone, and it depends on whose delivery period is the shortest."

"You go, we are all right. In a few months, you will come again and we will be there. " A management member of a tabulation company in Dongguan pulled the iron door and signaled reporters to leave. A few days ago, the company issued a notice of "encouraging resignation" to its employees, saying the company had been shut down because of the sudden cancellation of all orders by its American customers. This announcement has spread rapidly in the now cautious foreign trade industry, and the media has also reported a lot.

One employee of the company believes that this has hurt the boss's dignity. He is a more than 60 year old Hongkong native who has been doing business for 20 years in Dongguan. During last year's founding ceremony, he also hung a five-star red flag at the door.

On March 23rd and 24, Dongguan officials announced two major business changes in local foreign trade enterprises due to the cancellation of orders by customers. One of the toy factory enterprises lost contact with them, leaving about three hundred employees to collect debts. As a strong foreign trade market, the news of Dongguan soon spread, so that the foreign trade enterprises that are in the process of retiring are now more nervous.

Beginning in February, the container stranded at the docks was sent to sea by boat and ship to the port of Houston, Dubai port and Singapore port. It is unknown whether these ships will be able to land smoothly or to ship goods. The global spread of the epidemic makes the major ports issue signals that may be refused at irregular intervals. But the shipping company is continuing to open. Lin Hairong of the Guangzhou port group's production department feels that although the daily shipments do feel less, the ship that goes out every day seems to have made him feel that everything has not changed much. The vitality of China's major ports and routes is being activated again, trying to grab back the lost time of the past month.

Compared with what has been sent, there are still a lot of goods still in Chinese factories. There are fast fashion clothes HM, American brand Fossil watches and luxury brand handbags Prada, attracting some interest in traders who walk around factories and overseas customers all the year round. They are trying to win the authorization of customers directly from domestic channels, and negotiations are very difficult, but they are waiting for the opportunity. In March 25th, Ningbo re launched the mode of foreign trade to domestic sales in 2008, helping foreign trade enterprises overcome difficulties, and the emergence of cross-border e-commerce platform is also gathering energy for a new format. In addition, as of March 26th, a number of listed companies released their masks and protective clothing through the announcement.

In March 7th, according to customs statistics, the first 2 months of this year were affected by the new crown pneumonia epidemic and the extension of the Spring Festival holiday. China's foreign trade and import and export volume was 4 trillion and 120 billion yuan, down 9.6%. Among them, exports were 2 trillion and 40 billion yuan, down 15.9%; imports 2 trillion and 80 billion yuan, down 2.4%. In the first 2 months, the import and export of traditional trade partners such as the European Union, the United States and Japan declined, and ASEAN increased by 2% yuan and 594 billion 110 million yuan in imports and exports.

All these complicated backgrounds are gathered in the hands of Chen Xiaoxiao, a staff member of a freight forwarding company in Shenzhen. It is just the three word that she replied to customers - "risk."

The contest of return VS plus single

The slogan of Galanz in the workshop is simple and brutal. It is unconditional to accomplish the work goal. Do not make excuses. This banner is pressed on the top of the production office, and the office door faces the production line.

"This is to facilitate communication and improve efficiency as much as possible." In March 25th, a staff member of Galanz told reporters that another slogan behind her was "attack!" Attack! Just be number one!

This almost absolute tone conveys the internal demands of Galanz. During the lunar new year in 2020, China experienced a very special spring festival because of the outbreak of the new coronavirus outbreak. Many factories in China failed to deliver orders to global customers on time. As of March 11th, a total of 103 commercial certification bodies issued 5637 certificates of force majeure, involving a sum of 503 billion 500 million yuan.

This certificate represents to a certain extent that an enterprise is unable to say to its customers, and Galanz is not allowed to say so.

"Because the chairman said we can't use force majeure." The foregoing personages stressed that the 60% of Galanz refrigerator series is in the North American market, and the proportion of overseas business accounts for about half of the whole group business. In the journey of Chinese enterprises, integrity is also a bargaining chip for competitiveness. This chip allows Galanz to allow the return of production in February 10th, and must quickly adjust the pace of production to complete the order. In the past week, in response to the uncertainty of the global epidemic situation, Galanz did not receive a refund, but added a bill.

The measure of return is the productivity of an enterprise. A trade dealer who is in charge of the US brand told reporters that after China resumed in February, he had seven brands of orders on hand, facing four enterprises, and what he did was to start from the beginning of February, and follow up the number of employees returning to work in every enterprise every day, so as to decide who to call the order. "Whoever can do it will give it to anyone, and it depends on whose delivery period is the shortest."

"CK has been canceled, more than 10000 pairs (shoes), but NOBULL plus 10% orders, the French cock brand (shoes) also stabilized." Lei Xingyu, the chairman of Dongguan Jing Fu Knitting Co., Ltd., a Liaobu town in Dongguan, has been able to be calm in March. He said his advantage is that he can complete the production of the whole industrial chain in his own factory, and several competing with him have a longer shipping cycle.

Of course, he also swallowed up his own difficulties. In March 26th, Lei Xingyu completed the latest shipment order and shipped it to the United States by air. Compared with the thirty day shipping, the cost of air transportation is higher, but time is faster. "The profits of NOBULL shoes are relatively high. We talked with our customers and we could bear them."

Lei Xingyu is lucky. The order cancelled by CK only accounts for a small part of the company's business. At present, he only needs to maintain the normal operation of the factory. He digested the order before March, and waited for the customer's arrangement in April. Lei Xingyu does not deny that he has also made layoffs or a month off. "If the global epidemic continues to 6 and July, that means that the whole year will be destroyed."

Stay in China's "foreign trade goods"

At least, Lei Xing Yu's factory is open to work and orders. About ten kilometres away from him, a Dongguan Toy Company Limited has announced its closure, and the person in charge directly chooses to lose contact.

In March 24th, the official WeChat platform of Cha Shan town government of Dongguan officially released the announcement. According to the announcement, affected by the epidemic situation at home and abroad, the cancellation of foreign trade orders of Dongguan panda toys Co., Ltd. resulted in a sharp decrease in the volume of business and the fragmentation of capital chain.

Dongguan fan Da Toys Co., Ltd. is located in the Qilin City Industrial Zone, Zeng village, Cha Shan town, which was established in 1992. It mainly produces and sells toy garments, cloth bags and woven bags. After the incident, the Dongguan tea hill people's branch office posted a notice of arrears of wages in the company's factory area.

Almost at the same time, another tabulation company in Dongguan serving American customers also made a helpless move. The company announced to its employees that because the epidemic is rampaging around the world, especially in Europe and the United States, the most important customers of the company have already stopped ordering, and at the same time they have asked to cancel or suspend the original production order. The announcement goes straight to the point that at present, there has been a major crisis in operation and is at risk of shutting down at any time.

"Immediate resignation of staff, March wages in accordance with the normal salary of the full month, 2, March wages all cash settlement." The proposal put forward by the announcement was interpreted by employees as an encouragement to resign, but also caused dissatisfaction among some people.

In March 25th, a manager of the company told reporters that the cancellation of the order was true, but the company was still operating normally. In fact, they regret to announce the announcement publicly, which makes the original low-key leader uncomfortable. "He came back from Hongkong and saw the media report that everyone was twisting the truth. He loves this place very much, and the company is also very important to him. We also talked about transformation, but it's so easy. "

The order was cancelled and the goods were left behind. The Guangdong import and Export Chamber of Commerce, who is responsible for the foreign trade service business, told reporters that recently a lot of member enterprises had reflected the situation of goods warehouse pressure, most of which were mainly small and medium sized enterprises. Some of them had just returned to work and rushed to produce orders. Some of the goods were transported to the wharf and returned to the wharf, and some could only be stacked in factories. At present, they are holding some online docking meetings to help enterprises solve order problems with overseas customers.

Some traders who have been walking around factories and overseas customers have seen this batch of advanced "foreign trade goods", such as luxury handbags, fashion clothes, cosmetics and so on. They are trying to negotiate with overseas clients and sell them directly to the mainland under the premise of taking legal authorization procedures. A senior official who has been engaged in the foreign trade industry for over twenty years has revealed that such negotiations are very difficult, but if they have the opportunity, they will be very interested. According to what he has learned, at least one, the market value of advanced goods that may be stuck in Chinese factories may be worth billions of dollars. If the epidemic continues to last longer, enterprises will definitely need to find ways to get through the crisis.

In the 2008 financial crisis, Ningbo had tried this kind of "forced" foreign trade to sell domestically. In March 25th, the Ningbo Municipal People's government signed a strategic cooperation agreement with a number of partners, focusing on supporting enterprises to expand orders, steady production capacity, steady employment, and promote the export oriented production capacity to transfer to the domestic demand market. Over the next year, more than 15000 Ningbo enterprises will participate in the activities, and it is expected to drive local enterprises to sell more than 80 billion yuan in annual sales volume. It's over 20 billion yuan.

Yang Zhixiong, executive general manager of Guangzhou textile and light exchange Park, believes that as a serious garment and textile industry, many merchants are dealing with inventory in the electricity supplier channel. At the same time, they are rearranging some of them in the original wholesalers. But now, from the foreign trade to internal sales, it is not like 2008. We must do our own innovation and wait for new opportunities.