Facing The Cancelled Foreign Trade Order, The Owner Of The Clothing Factory Can Not Sleep.

"We have been canceling orders for nearly one million days, and we can't sleep." Wang Moli, head of a clothing trade company in Shaoxing, Zhejiang, told the interface fashion.

In the last week of March, retail stores in the US went out of business because of the new crown pneumonia outbreak. Wang Moli's anxiety was abnormal when he saw orders disappear.

Among the cancelled orders, the biggest headache was her batch of pierced lace tops, more than 30 thousand garments and hundreds of thousands of dollars worth of germ cloth. "The unit price is expensive, fashion money, seasonal and quantity. I can't digest this order."

Compared with her, many of her peers suffered more.

Wang Moli said that a familiar Shaoxing foreign trade clothing company had an order of 20 million dollars to be cancelled, and a "big boss of Ningbo" had 100 million dollars order cancelled and intercepted. The company has already laid off 15%, and it may continue later.

More upstream fabric suppliers are also unhappy.

In Shaanxi, which is more than 1000 kilometers away from Shaoxing and textile and clothing as one of the pillar industries, the negative impact of the reduction of foreign trade orders is more profound because of the large number of large textile enterprises.

A local textile group told the interface fashion that with the improvement of domestic epidemic situation, staff shortage, loan maturity and inland transportation interruption of export goods in the first two months were all alleviated. I thought I could welcome the season of foreign trade orders as usual, but I didn't think about it. What I came to do was cancel the order.

70% of the group's foreign trade orders are from Europe, but long term orders are basically cancelled. Some customers are required to postpone orders until the end of May and early June, and then discuss the situation according to the epidemic situation.

If the order is uncertain, everything will become uncertain.

The first is the shortage of liquidity. In the face of the thousands of workers who have returned to work, the daily operation of the production Park, the enterprises that are short of money in their hands are facing difficulties.

For large enterprises, long-term projects such as industrial upgrading, technological transformation, structural adjustment and so on, which are continuously invested, will also become weak.

In terms of product development, the loss of foreign trade orders will also lead to textile exporters' difficulties in accurately grasping the international market trend. If you can't get competitive products, future orders will be harder to grab.

"Not only the fierce competition in the same industry, the export of some products to domestic sales, but also intensified competition in the domestic market." The textile group talks about interface fashion.

Now the Group expects exports in 1-3 months to reach only half of the same period last year.

Big clients in China's factories may not be able to sleep well. Europe's epidemic situation is the most critical juncture. Large scale shutdowns and downtime have left local brands with no time to spare. In the face of not knowing when to return to normal retail atmosphere, reducing or cancelling orders is the fastest way to stop.

In financial reports, it was mentioned in the report that Luo Miao (alias), a clothing factory owner who supplied Zara, H&M, Max Mara and other European brands, said recently that H&M and other brand customers had cancelled their orders in May, of which the order cancelled by H&M was a group of clothing in late summer and autumn. According to Luo Miao, Zara and H&M have also cancelled orders for 30%-40% in Burma, and some orders remain unresolved.

After understanding the relevant situation with H&M, the interface fashion was informed that the decision was made in the current extreme situation for long-term consideration. H&M will suspend the new order and assess whether the order status needs to be changed in the near future.

However, H&M said that although it was forced to make tough decisions for the short term, it would continue to fulfill its commitment to the suppliers of garment manufacturers and receive products that were manufactured and manufactured according to plan.

"Our long-term commitment to suppliers will remain unchanged and payment will be made according to the agreed terms of payment. In addition, the price will not be negotiated with the order. "

H&M said that in the face of all uncertainties, we hope to maintain transparent and clear communication with suppliers and conduct close and open dialogue on short-term and long-term plans.

While maintaining close communication with long-term customers, China's factories must immediately help themselves to reverse the situation.

Joel Galo, an international trade expert and business consultant, said that for the Chinese foreign trade enterprises, the most important thing is to ensure the cash flow as much as possible. "Lack of liquidity can lead to bankruptcy. It is very important to understand the minimum daily funding level required for operation."

At present, in addition to temporarily shutting down production, layoffs and self rescue, export to domestic sales may be one of the more feasible ways.

The Shaanxi textile group said that it is considering developing new customers and expanding new markets with platforms such as trade fairs and networks.

Wang Moli also saw that many of his peers began to switch to domestic sales. But there are difficulties in the way of domestic sales.

On the one hand, although the domestic retail industry has just released the frozen state as China's epidemic has improved, the overall consumption recovery still takes time.

In addition, the goods that Chinese suppliers have done for overseas customers may not be suitable for Chinese people. The size and size of the products do not match. For example, Wang Moli's hollowed lace jacket on hand can hardly find buyers in China.

But in recent days, she found that American consumers began to rely on online shopping. Some of the slow-moving goods on the Internet rose sharply. "Last week sold 30 thousand dollars!" relying on the US business channel, Wang Moli basically recovered most of the order money.

Cheng Weixiong, an expert in textile and clothing brand management, believes that the loss of foreign trade enterprises is unavoidable. It is not ruled out that the cross-border trade enterprises or factories with insufficient funds will be forced to go bankrupt due to excessive losses.

"Only those who focus on the main business will still have the opportunity to practice their internal strength. The starting point of all enterprises is consistent before the epidemic. It is to see who can get through this because of the dark time brought by the epidemic." Cheng Weixiong said to interface fashion.

Under the chaos, there are still a group of people attacking another door. It is understood that at present, many socks factories in Zhuji, Zhejiang, China's stocking and stocking export outlet, have been exported to masks.

The owner of a local stocking factory said to the interface fashion reporter: "more than ten days ago, everyone still repelled the mask, but now only the mask has a bit of headgear." It is also said that as long as there are goods, there are outlets for sale.