After The Three New Crown Epidemic Investigation, The Director General Of The International Textile Federation Looks At The Global Textile Development.

At present, China's epidemic situation has stabilized, but for many parts of overseas, the new crown virus is still a severe challenge. What is the impact of the pandemic on the global textile industry? How should the global textile industry deal with the epidemic? To this end, China Textile interviewed the director general of the International Textile Manufacturers Federation (ITMF) ChristianSchindler (Kristen Schindler).

From 16 to 28 January, China conducted third surveys on its members, affiliates and associations, focusing on the theme of "the impact of the coronavirus pandemic on the global textile value chain", with particular attention to the impact of current orders and expected turnover in 2020, Textile:4 ITMF. According to the survey, what is the actual situation of orders in the world textile industry? What are the new changes in global consumer behavior in the face of the epidemic?

Christine Schindler: a total of 600 companies in the world participated in the survey. Among them, the order decline in East Asia was -28%, significantly smaller than that in other regions (equal to or greater than -40%). The survey showed that the first area affected by the coronavirus would recover from the crisis first. In particular, China and South Korea have successfully controlled the outbreak. In the past few weeks, most textile enterprises in China have substantially increased their output. Similarly, offline retail outlets have been reopened, and consumption in East Asian countries has picked up again. As for the consumption behavior of China, Korea and other places, it remains to be seen.

China Textile: the survey shows that in 2020 compared with 2019, the volume of business is expected to see a big decline?

Christine Schindler: European enterprises predict that the turnover in 2020 will only "drop" by -22%, which is obviously better than the -33% reported in the second survey. East Asian enterprises expect 2020 turnover to decline by -26%, similar to the second survey report (-24%). On the other hand, the turnover of Southeast Asian and South Asian companies is expected to deteriorate significantly. These areas were later affected by the new crown virus epidemic, so their situation was relatively delayed. Compared with 2019, the expected turnover in Southeast Asia dropped to -38% in 2020, and in South Asia to -31%. Since the second survey, turnover in Africa, South America and North America is expected to vary little.

China Textile: what is the biggest challenge for the global textile industry? What opportunities are there?

Christine Schindler:

In this crisis, the biggest challenge facing enterprises is to ensure liquidity. Many companies are struggling to maintain their financial position due to the cancellation of orders, delay or delay in payment. Therefore, it is very important to provide an affordable and mobile way for enterprises. Governments in many countries have proposed financial options such as loans, grants, short-term work plans, delaying taxes and social security payments, and reducing electricity consumption. At the same time, the international financial organization has also put forward some projects to support some countries that do not have enough resources. Of course, it is best for retailers or brands to discuss with their suppliers in a cooperative way how to overcome this crisis together instead of unilaterally cancelling orders.

Another great challenge is the disruption of the global textile supply chain. Many complex supply chains take months to resume normal operation. How long will the negative impact of the epidemic on the global supply chain last? Or, when and how can consumers start spending again? These are all uncertain.

But there are also opportunities that some companies are rapidly turning to producing masks and personal protective equipment (PPE). This crisis provides enterprises with the opportunity to streamline the organization and production process. In addition, enterprises should speed up the reassessment of the existing supply chain; enterprises should speed up the implementation of digital strategy and sustainable production investment.

China Textile: what do you think the global textile industry should do to mitigate the negative effects of the epidemic?

Christine Schindler:

Governments should provide the necessary resources for the health system and support enterprises and employees flexibly. People in all countries also strictly observe social distance and hygiene standards.

The pandemic of this coronavirus has shown us the firm and fast action of the government and people, which is crucial to overcome this crisis. In addition, cooperation and solidarity between countries and textile supply chain partners are reducing the negative impact of the epidemic and laying the foundation for a strong economic recovery.