Epidemic Prevention And Control Upgrade, Store Shutdown, European And American "Withdrawal Tide" Affecting The Global Textile Supply Chain

At present, China's new crown pneumonia epidemic situation has been effectively controlled, and all walks of life have been gradually resumed. However, the overseas epidemic has spread rapidly, and the United States, Italy, Spain, France, Germany and other countries have been upgraded. With the implementation of the overseas measures, a large number of retail outlets were closed, and the consumption of terminal market was immediately suppressed. Many international clothing brand retailers began to cancel orders in large quantities, and China's textile foreign trade enterprises that just made efforts to straighten out the upstream and downstream production and supply channels encountered second rounds of problems in a short time.

The cancellation of the single supplier was unprepared.

In the short term, a large number of foreign trade customers withdraw their orders, which has brought great uncertainty to the development of foreign trade enterprises this year. In the developed areas of Jiangsu and Zhejiang textile enterprises, it is very common for enterprises to encounter cancellation.

Zhang Weifeng, general manager of Zhangjiagang bonded area name MAP Chemical Products Co., Ltd., who has been engaged in dyeing and finishing industry for more than 20 years, told the China textile daily reporter that in the past week, orders for overseas orders were especially serious in Germany, France and the United States. In Shaoxing, Zhejiang, Keqiao, many dyeing factories were affected, and about 70%~80% of enterprises encountered the cancellation. Before it is ready to make up for the loss of the printing and dyeing enterprises on time delivery, the newly purchased grey cloth is also stacked in the workshop. After receiving the notice of withdrawal, the production can only be suspended. The corresponding market demand for dyes and chemicals has also declined sharply.

"The biggest difficulty now is not capital flow or other problems, but the cancellation of orders. Some enterprises have just arrived at dyed factories, and dyeing and printing has stopped. Many local enterprises produce chemical fiber and flannel products. The products are seasonally strong. Small businesses are leasing factory buildings. Now, missing seasonal orders is not only a single business problem, but rather a missed season. Zhang Weifeng explained this way.

In addition to the urgent withdrawal of the production link brought by the withdrawal of the order, there is also a risk that the completed order can not be shipped and the port does not receive the goods, and the risk of export is rising sharply.

Jiangsu Changzhou East Garments Co., Ltd. is a professional Levi s brand denim casual wear business, products exported to France, Germany, the United Kingdom, Italy, the United States and many other European and American brand shops, the factory has 19 production lines, more than 1300 workers, only the washing plant has 340 employees, enterprises have a relatively perfect upstream and downstream production supply chain. Since the Spring Festival, enterprises have resumed normal work since resuming work. According to "China textile daily" reporter understands, East Austria also recently encountered the situation of cancellation. For example, American customers have explicitly requested that if the existing order can be completed before April 2nd, shipment can be completed, and the port can not be accepted after a deadline. Therefore, the company is working overtime to catch up with the production, basically to meet the deadline.

Jiangsu Taizhou Verna Fashion Co., Ltd. is a fashion export enterprise with an annual export volume of about 30 million pieces. Recently, two successive export orders have been cancelled by customers.

After the cancellation of orders, Wuxi Xin Bai Tong Garments Co. Ltd. simply decided to give employees two months' leave because of the lack of orders. "Some foreign customers' communication with suppliers is: if the grey cloth has been cut online, the finished products can continue to deliver, but the price will be discounted and need to be discussed with customers again; if the enterprise has not arranged the cutting of gray cloth on the line after receiving the order, then the sub order customer will no longer be required." Informed sources told reporters.

Spread of overseas epidemic lengthening production and marketing period

According to the statistics of China's General Administration of customs, under the influence of the epidemic, China's textile and apparel exports in the first two months of this year were 29 billion 830 million US dollars, down 20% compared to the same period last year, which is higher than the average level of 17.2% of the total export of goods trade in the same period last year. Textile and apparel production and supply chain is longer, and has formed the characteristics of global layout, making the textile industry more serious than other manufacturing industries, and the situation is more severe.

The order of the terminal brand suddenly cancelled, overlaying the sudden collapse of crude oil, cotton and other upstream raw material prices, so that products that are still in circulation and raw materials purchased at relatively high price and raw materials have become the inventory of textile production factories, resulting in a large loss. This makes foreign trade enterprises face unusually severe challenges.

In a recent symposium organized by the China Textile Import and Export Chamber of Commerce and Shanghai Xi, a seminar on "crisis" and "way out" of China's textile industry under the new crown virus epidemic situation, Wang Lizijie, a researcher at the Cci Capital Ltd of Dun and industry, believes that before the international perspective, the restrictions on the movement of people in the more serious countries have only just begun. The retail industry is facing greater losses as the duration is still hard to predict. In the two quarter, the foreign conference probably repeats the situation in the first quarter of our country, and there will be a cliff slide in the short term market demand.

London and industry analysis, from the domestic perspective, the market is mainly affected by 2~3 months, mainly affecting 3 points: first, the window period of spring clothing sales is substantially shortened, there will be basically no catch up situation, and the backlog of clothing in spring is a foregone conclusion. Two, the order of summer clothing needs to be observed. Due to the problem of capital flow, it is very difficult to produce explosive orders. Three, the pressure on consumption will be gradually reflected. However, the current overseas epidemic fermentation will also affect the export production of 3~6 months in China. Part of the overseas summer orders are facing a temporary cancellation, which will have a great impact on the production side. In addition, the duration and magnitude of the epidemic determine the status of overseas autumn orders.

The "withdrawal tide" affects the global supply chain

Another reporter has learned that in the global textile supply chain, China's foreign trade orders have not been lifted. Bangladesh, one of the world's major suppliers of textiles and clothing, is playing the same story. According to media reports, the Bangladesh garment industry is facing the brink of disaster in the past week. Bangladesh garment manufacturers and Exporters Association (BGMEA) chairman Rubana Hook (Rubana Huq) said Bangladesh 490 factories have received $1 billion 500 million worth of clothing export orders cancellation notice. She appealed that retailers should not cancel the confirmed orders and continue to accept orders before July, and enterprises will gradually adjust their inventory. "Because we need to pay wages to workers, we have practical problems to solve, and we can not let 4 million 100 thousand workers starve. Brand partners and US partners last month are now strangers. " Hooke said.

Because many brands are basically in the hands of spring and summer, some may sell to the market in autumn to reduce losses, which will directly reduce the demand for autumn supply. Some analysts believe that due to different national conditions and cultural differences, the situation of epidemic control in Europe and the United States is still hard to judge. For textile and garment exporters and suppliers, the reduction of orders will continue.

The supply and demand situation of the market tends to deteriorate from the epidemic situation, forming a short-term supply and demand mismatch. The textile and garment industry is closely related to the international market. Therefore, the textile industry will be rather difficult in the short term.

"This year will be the most unusual year. How to survive hard is the biggest problem we need to face now." Many exporters think so.