Textile Enterprises Order: Do Not Let People Play A Loophole, Do Not Do Bad Customers To Take Plate Man!

Since the outbreak of the epidemic, global textile production and orders have fallen, and turnover will drop to a relatively low trend. The total export volume of textiles and clothing in the first quarter was 45 billion 264 million US dollars, down 17.7% from the same period last year. At the present stage, the level of textile and clothing exports dropped even more than the 2009 after the financial crisis. In the two quarter, the industry will continue to bear pressure.

At present, the relaxation of control policies in Europe and other countries means that the global supply chain is showing signs of recovery. However, the large-scale negative effects of the impact of the epidemic on the industrial chain are coming step by step.

India starts the second round of city orders. There will be 10 million people in the textile industry.

With the further fermentation of the India epidemic, Modi, Prime Minister of India, announced on Tuesday (April 14th) that the national confinement period should be extended for nearly three weeks to May 3rd.

The latest official figures in India show that in the past 24 hours, 1211 new cases have been infected in India, and the total number of confirmed cases has risen to 10363 cases, and 21 cases ago, the figure was 519. In addition, the number of deaths caused by new coronaviruses increased to 339.

1, port stop exports blocked

Influenced by India's sealing up, over two weeks, India's trade, production and transportation (including shipping, shipping) and exchanges have been greatly reduced or even cancelled.

According to statistics, as of the first ten days of April, several ports in India were closed and over 50 thousand containers were left behind. India's cotton processing and export, cotton gauze production and sales, clothing, foreign trade and other industrial chains have been strongly impacted. Not only did the spinning and weaving enterprises start a sharp decline in their start-up rates, but also the number of closed doors increased, and the unemployment rate continued to rise.

A cotton exporter in India said that since the late March, domestic cotton consumption demand and cotton exporters pressed the "pause button" at the same time. In addition, European and American purchasing enterprises and retailers have cancelled orders or unlimited delayed shipment, so the situation is deteriorating step by step. We hope that the government departments will lift the measures of "sealing the country and sealing the city" as soon as possible, so as to make cotton textile production and cotton. Cotton yarn export business returned to normal.

According to the survey, due to the sharp decline in the price of cotton and cotton in India, a part of cotton and cotton yarn export contracts can not be implemented, and the fact is broken. If the contract can not be shipped and fulfilled before and after the end of April, the peak of the destruction will come as scheduled.

2, India textile industry may lay off 10 million people.

The India Apparel Manufacturers Association (CMAI) said that if there were no government support, the textile industry could lay off 10 million people. It means that wage subsidies and other interventions must be adopted, otherwise there will be huge job losses.

More than 80% of India's clothing industry is small and micro enterprises, of which CMAI has about 3700 members, employing over 700 thousand people, and most members simply can not carry the epidemic for 3-6 months. Without government assistance, whether in terms of wage subsidies or in the resumption of work, it may lead to a reduction in the number of jobs in the entire textile chain, or 10 million people.

CMAI has conducted a survey among its members and analysed about 1500 replies, of which nearly 20% are considering closing the business after the blockade. At least 60% of them expect income to drop to 40%, which is huge if employed.

Modi, Prime Minister of India, announced in April 14th that the national blockade, which was scheduled to end on that day, will be extended to May 3rd. Some of the non epidemic hot spots may be eased slightly after April 20th.

Japan has entered a state of emergency, and Toshiba has announced a massive shutdown. 76000 employees "long vacation"!

Due to the increasingly tense situation of the new crown pneumonia in Japan, after the 8:25 pm on the evening of 16 local time, the Japanese cabinet government held a meeting to discuss and make decisions on the new Japanese crown pneumonia epidemic response. Subsequently, Japanese Prime Minister Abe Shinzo announced that because of the serious threat to the lives and health of the people, the social life and the economy may be greatly affected. The object area of the "emergency declaration" issued by the new crown special law was extended from Tokyo, Kanagawa, Saitama, Chiba, Osaka, Hyogo and Fukuoka to the 7 counties of Japan, and the application period lasted until May 6th.

Affected by the continuing spread of the new crown pneumonia, Japanese Toshiba Co announced yesterday (15) that the headquarters and factories in Japan will temporarily suspend operations.

Financial channel special correspondent Wang Xiang: as of now, if coupled with the number of confirmed passengers on the cruise, Japan has accumulated more than 9400 cases. Moreover, Japan's recent growth rate is faster, and the total number of confirmed diagnoses has jumped to 24 place after 30 weeks from two or three weeks ago. Among them, Tokyo is the largest number of confirmed cases in Japan, accounting for 1/4 of the whole country.

Against this background, Toshiba Co, one of the largest manufacturers in Japan, announced yesterday that apart from maintenance operations related to infrastructure such as electricity, railways and elevators, all employees in the headquarters of Tokyo and factories in Japan will temporarily suspend operations from 20 to May 6th, involving a total of about 76000 people.

Such a large-scale shutdown is unprecedented in Japanese companies, one of which is the internal infection of employees. According to information released by Toshiba's official website, 5 people have been diagnosed in a factory in the outskirts of Tokyo.

In addition, the stoppage is also a response to a reduction of 80% contacts between the Japanese government's appeals officers. More than 40% of Japanese listed companies are headquartered in Tokyo, such as Toshiba, a large enterprise such as Toshiba, where thousands of employees are concentrated in the headquarters building. These employees take public transportation from Tokyo and surrounding areas every day, which is undoubtedly a great pressure on the epidemic prevention and control of Tokyo and the three counties around Zhou. Although the data show that the current urban agglomeration in Tokyo has decreased by about 60%, there is still a big gap between the target and the target. Therefore, the Japanese enterprises will further expand their work stoppage in the future.

At present, the state of emergency declared by Japan in the 7 tier one administrative region lasts for one month, which will become a critical period for epidemic prevention and control in Japan.

Although we can also feel that all parties in Japan are working hard, we have to say that Japan has consistently displayed a consistent procrastination in decision-making speed. The decision to stop work like Toshiba was only made a week after entering the state of emergency, and the real implementation will have to wait until next week. Epidemic prevention and control is very fast, so there is widespread concern that if Japan can not respond quickly to the spread of the epidemic, the emergency situation may still be extended.

The decline of domestic textile exports in the first quarter was higher than that in 2009 after the financial crisis.

According to Chinese customs statistics, in the first 3 months of 2020, China's trade in goods exported 3 trillion and 330 billion yuan, down 11.4%; imports 3 trillion and 240 billion yuan, down 0.7%; trade surplus 98 billion 330 million yuan, reduced 80.6%.

In the first quarter of this year, the total export volume of textiles and clothing totaled 45 billion 264 million US dollars, down 17.7% from the same period last year (15.9% in the year before RMB). Among them, the total exports of textiles amounted to 22 billion 694 million US dollars, down 14.6% from the same period last year (12.7% in the year before RMB), and the total export volume of clothing was 22 billion 570 million US dollars, down 20.6% compared with the same period last year (18.9% in the year before RMB).

From the product category, industry exports continue to show differentiation. According to customs statistics, exports of textiles including yarns, fabrics, home textiles, industrial and other manufactured goods increased by 5.3 percentage points over the first two months, while the decline in downstream clothing exports continued to increase by 0.6 percentage points over the first two months.

In the month of March, China's textile and clothing exports amounted to US $15 billion 430 million, down 12.9% compared with the same period last year (10% in the year before RMB). Among them, exports of textiles amounted to 8 billion 922 million US dollars, down 4.9% from the same period last year (1.7% yuan in the same period last year), and clothing exported 6 billion 508 million US dollars in the same month, down 22% compared with the same period last year (19.3% in the year before RMB).

The analysis of China Textile Federation Industrial Economics Research Institute pointed out: from the perspective of the export of textile and clothing in the past years, the decline of China's textile and clothing exports even exceeded the 2009 after the financial crisis. According to statistics, in 2009, the export volume of the whole country decreased by 16%, and the export of textile and clothing decreased by 10.07%. In the first quarter of 2020, the export of goods and clothing decreased by 13.3%, and the export of textile and clothing dropped to 17.70%.

The alliance analysis of China's textile international capacity cooperation enterprises believes that in the two quarter of the year, China's textile industry is facing severe challenges in terms of "stable foreign trade" and "steady employment". The sudden cancellation or delay of overseas orders has brought high uncertainty to the operation of domestic textile enterprises, which have been resumed and reproduced, which are mainly embodied in various practical problems such as market demand, inventory and cash flow. It is necessary for the government, enterprises and industry organizations to make joint efforts and take various effective measures in time to win the "survival war" in the two quarter and enhance the resilience of the industry's future development.

Zhao Ping, director of the International Trade Research Institute of the China Council for the promotion of trade, believes that although the foreign trade situation is improving in the first quarter, the pressure of future growth is still great. Affected by the global epidemic, external demand is still weak. In particular, China's major trading partners, the European Union and the United States, have become the worst hit areas. Some foreign trade enterprises have postponed or cancelled orders, and new orders have been affected. The export of consumer industries has been greatly impacted in the short term. The foreign trade industry is still in the contraction Zone, and the challenges it faces are still enormous.

Several reminders of subsequent textile enterprises' orders:

1, with the reduction of demand, we should pay attention to the demand for counterfeit or inferior products. We must strictly manage the products when we need to do so.

2, as orders reduce competition intensifies, do not downstream users to seize loopholes, especially the accounts can not be placed in order to meet the long account period.

3, when developing customers, do not receive orders that are too easy to receive, but the old suppliers who are good quality customers must guard against sticking to them.

4, do not imagine the use of low price order strategy to increase orders, and then follow up the price to compensate for losses. This year, the overall price situation is very uncertain. If there is no opportunity and opportunity, it is hard to say.

The whole industry is in the memory of the period of price rise, but when prices really come, the downstream is calling the upstream to be rich and ungrateful; when the price goes down, the upstream scolds the downstream with no feeling; in fact, there is a reason for scolding, because no one wants to lose his own interests, and he always wants to lower his own cost and increase his selling price, which is actually "loyalty and filial piety".

Overcapacity, reduced demand, uncertain future and increasing competition are "starving to death" or "embracing the upstream and downstream". Integration is easier than development. The problem is that there are still opportunities to be created without opportunities.