Facing The Negative Growth Rate Of Import And Export, China'S Foreign Trade Enterprises Are Stepping Up Their Preparations For "Two Hands".

Editor's note:

A sudden outbreak not only has a profound impact on China's industrial chain and supply chain, but also has a huge impact on the textile and garment industry. Faced with a series of challenges such as foreign trade disruption, domestic demand and sales decline, industries and enterprises have begun to help themselves and break through in different ways while facing great pressure.

How to deal with the situation that has not been changed for a hundred years, find a way out in the fog, and re energize? At the moment, accurate understanding, scientific contingency, initiative change, knowing and changing the bright future, strengthening confidence and catching and creating opportunities from the immediate crisis and immediate difficulties are the counterattack paths for the innovation of Chinese textile industry under the epidemic situation.

To overcome the epidemic situation and make further progress, confidence can not be reduced, and the goal of textile power can not be changed.

In order to better help enterprises to see the nature through change and follow the trend, China Textile Magazine has launched a series of special reports on "grasping opportunities and confidence", focusing on the two markets of foreign trade and domestic demand, starting from the different dimensions of industries and enterprises, and taking the pulse of the current development of textile industry to suit the remedy to the case, planning ahead of time, and developing high-quality development.

With the global spread of the new crown pneumonia epidemic, from supply to demand, from the economic and trade to the political, economic and social levels, we are under tremendous pressure. Global trade cooperation is almost halting, and the risk of world economic recession is constantly accumulating. As the highest marketization degree, the textile and garment industry with the longest industrial chain takes the brunt of it, and many orders have been reduced, even suspended, postponed, or cancelled by many countries, such as closing customs, closing borders, and sealing the city. Therefore, China's foreign trade enterprises have suffered heavy losses.

In June 7th, the General Administration of Customs released data showing that in May, the export volume of our country decreased by 3.3% in the US dollar year by year, and the growth rate was negative. The import volume decreased by 16.7% compared with the same period last year, or 2.5 percentage points from the previous month. The trade surplus reached $62 billion 930 million in the same month, an increase of about $17 billion 600 million from the previous month. In the first 5 months of this year, the total trade volume between China and the United States was 1 trillion and 290 billion yuan, a decrease of 9.8%, China's exports to the United States dropped by 11.4%, imports from the United States dropped 4.5%, and the trade surplus with the United States decreased by 642 billion 550 million yuan, a decrease of 14.5% over the same period last year.

Compared with the previous four months, although the manufacturing economy of the major economies in May rebounded, it was still much lower than the ups and downs.

"The strong export strength in April was mainly due to the implementation of orders in the first few months, and some of the previous orders in May, but the number was not very large." Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, said: "with the economic restart in Europe and the United States and other countries, the external demand should be improved, and the order is expected to increase in 6 and July." In particular, the export growth rate of domestic anti epidemic materials has accelerated significantly, which has a certain underpinning effect on the export decline. Customs data show that on May 1st -16, China's export of anti epidemic materials reached 63 billion 200 million yuan, which exceeded the 60 billion yuan export volume in April.

However, there are still many experts who are cautious about exports for the next one or two quarters. After all, the development trend of the epidemic situation and the change of Sino US economic and trade relations are important factors that affect China's export growth. In particular, some western countries' politicians, led by the United States, continue to "blame" and "throw the pot", which has greatly exacerbated the rise of trade protectionism and geopolitical conflicts. The global economic structure has undergone unpredictable changes, and some unstable and uncertain risks have been accumulating. In addition, because of the "Freud death" triggered by multinational protests, all of which have cast a shadow over the world economic recovery under the epidemic. In this regard, the Bank of China International Securities forecast in the report said that in 2020 China's import and export volume of the negative rate of negative growth, but the decline is weaker than the global average.

Under the epidemic, many domestic foreign trade enterprises or "shared orders" hold together to warm up, or fight for active layout in the domestic market, or break down pressure on line breakout. Actively resolve pressure and discern business opportunities. In spite of the improvement of the epidemic situation in various countries, some countries have begun to lift the "emergency" and gradually restore their normal state. The experts stressed that although the short-term international economic recovery is not optimistic, foreign trade enterprises must adjust their market direction and industrial structure in time, and transform their risks into a diversified layout.

International trade has almost stopped.

Foreign trade exports encounter "cold current"

As mentioned by the International Textile Federation in the late April, which launched the third new crown impact survey involving 600 enterprises in Africa, the Americas, Asia and Europe (including Turkey), the risk of the outbreak is global. Once the more than 40 countries in the world entered a state of emergency, almost all enterprises in the region suffered a large number of orders to be cancelled and postponed. The textile and garment industry suffers from unprecedented impact at both ends of supply and demand. Foreign trade enterprises are suffering under the influence of uncertain factors.

As an important cluster of knitted sweater exports, Dongguan Dalang town has gathered thousands of export enterprises. Affected by the epidemic, some foreign trade dealers sold and sold the woolen goods at a cost of thirty or forty yuan, and now they can buy a cheap export sweater by two yuan / piece.

"Our annual output is 10 million, and this year we have 7 million overseas orders cancelled." The head of a knitting knitting enterprise in Dongguan, a Zara sweater manufacturer, said that at present, 70% to 80% of the factory workers have been on holiday because of the decrease in overseas orders. "Although there are several enterprises in the vicinity, they are basically looking for orders before the year, and most of them are not ready to pick up, or even turn to domestic sales."

Affected by the epidemic, not only small and medium-sized enterprises, but also large enterprises such as Shenzhou also suffer from the "pain" of order reduction. "H&M, ZARA, Old Navy, WAL-MART and other international brands are cancelling orders. The company's products are sent to Vietnam, and brands are not accepted. We are also very confused now, because just a few days ago, the workshop was still hot, and the transport car was not enough. And overnight, orders suddenly disappeared. A large domestic processing garment factory manager reluctantly said: "this year's off-season to two months earlier than in previous years, the list cancelled, even if not canceled, some people are helpless. If we rush to make an order, we fear that the subsequent suspension will be suspended. If we do not rush to do it, we will not be able to pay the delivery date. "

According to incomplete statistics, this year, major international brands such as Zara, H&M, UNIQLO, Nike, Adidas and so on closely cooperate with China's foundries have shut down, refunded or delayed delivery. "The first thing I do now after getting up every morning is to focus on domestic epidemic data and focus on foreign epidemic data." As a result, many textile traders have laughed at themselves: "orders are not canceled, they are on the way to be canceled." Even Keqiao, the fabric capital, used to have more than one hundred thousand trips per day in China's Textile City, but only ten thousand of its ten days this year.

In the first quarter, China's textile and clothing exports fell more than the level of the global financial crisis in 2008. In 1~3 months, the amount of textile and clothing exports to the United States, Japan, the European Union, ASEAN and Africa decreased by 29.2%, 16.8%, 14.3%, 13.1% and 11.7%, respectively. Despite the fact that since April, thanks to the completion of stock orders and the surge in demand for masks and protective clothing, China's textile and clothing exports have narrowed rapidly. In 1~4 months, the export volume of textiles and clothing was 66 billion 620 million US dollars, down 10% from the same period last year, the decline narrowed by 8 percentage points compared with the first quarter. Among them, textile exports amounted to US $37 billion 310 million, an increase of 2.9% over the same period last year, 14 billion 620 million US dollars in the month of April, an increase of 51.1% over the same period last year, and clothing exports stood at 29 billion 310 million US dollars, down 22.3% from the same period last year, and exported 6 billion 740 million US dollars in April, a decrease of 27.7% over the same period last year.

Although the epidemic has been effectively controlled in some countries and regions, Spain, Germany, Austria, Denmark, Czech and other more than 30 countries and regions have indicated that they will relax the closed measures to cope with the new crown epidemic situation. But as of May 17th, the 48 states of the United States had only partially restarted; Brazil was the epicenter of the next epidemic; India's national blockade was postponed again; the French epidemic rebounded; Britain would enter the era of negative interest rates. In view of the current international epidemic situation and the trend of global economy and society, many experts have indicated that the global economic recovery is still slow in the short term, and that domestic trade exports will improve in the second half of the year.

Live online and busy with goods

Every day, 700 enterprises are sold domestically.

Faced with many thorny problems such as the reduction of foreign trade orders, backlog of stock, and unsmooth cash flow, many foreign trade enterprises began to fight for domestic sales while stabilizing and keeping abreast of foreign markets.

"This cotton linen curtain cloth is a new product with dustproof effect. Welcome to consult." In Keqiao, China's Textile City North market, a sales department, "post-90s" dealer Hong Hao is working with buyers online. Before the epidemic, most of the cotton and cotton fabrics, slub, snowflake and other products produced by the company were mainly exported. Because of the reduction of orders, Zhang Honghao decided to open the domestic market through the form of online transactions such as live broadcasting and carrying goods, so as to "walk on two legs" to cope with the epidemic situation.

Recently, over the world's 2020 textile cloud exhibition sponsored by China Light Textile City Construction Management Committee, Keqiao District Commerce Bureau and China Textile City Group, more than 120 enterprises have demonstrated products through the network, of which 69 enterprises have been interacting with merchants through live broadcast. "The company's products are mainly exported to Italy, because most of the epidemic restrictions are at a pause stage. In order to reduce losses, on the one hand, we continue to increase our visits to key domestic customers, and strive to develop domestic markets; on the other hand, we try to keep in touch with our existing customers. Xie Zhenbin, sales manager of Hebei Yu Teng Cashmere Products Co., Ltd., said that at present, the production of enterprises is all in the order of years ago, or the risk of order breaking will occur at the end of May. To this end, the company actively adjusts the direction of the market, layout at the same time in Zhejiang, Tongxiang, Hongkong and Guangdong Shenzhen three places, and strengthens intelligence and information input. In the future, it will take three areas as the center and mobilize the domestic market.

"Export to domestic sales, enterprises will face many challenges in terms of capital and manpower. Maybe foreign trade fabric enterprises turn to domestic sales and have certain advantages in products. People in the industry say that the design of clothing patterns in China is mostly from abroad, so foreign trade fabrics tend to be more fashionable and competitive. "But most of the foreign trade enterprises have adapted to the OEM mode of foreign trade" game rules ", which may not meet the needs of domestic sales, such as product appearance, model and other parameters. Before the big international companies will calculate through pre research, the factory can start production according to the order, while the domestic market must constantly design new product styles according to the preferences of domestic consumers.

However, under the epidemic situation, there is still no way to stop foreign trade going to domestic sales. "Since last year, at least 32 export oriented enterprises in China are seeking to transform domestic trade. The platform Fujian, Jiangsu and Guangdong production enterprises in March this year, the scale of transactions increased by more than 250% over February. The Alibaba official revealed that within one month, the total number of new domestic trade platforms of the Alibaba was 1688, and the total number of newly added foreign trade factories exceeded 2, with an average of nearly 700 foreign trade factories being settled every day. The turnover of the foreign trade factories on the platform has exceeded 22 billion yuan a month. In addition, in order to alleviate the current market predicament of foreign trade, Alibaba's Taobao special edition also introduced ten measures to support foreign trade factories to sell domestically.

Nowadays, while fighting for the domestic market, many foreign trade enterprises focus on the domestic consumer market, and have used the big data to dig the consumption demand through the platform of live goods and electricity providers. As of May, more than half of the foreign trade enterprises in China had already opened Taobao stores. In the past three months, the number of new foreign trade shops on Taobao increased by 160%.

"Sharing order" newspaper group heating

Government and enterprises should work together to overcome difficulties.

If the epidemic disrupts the social and economic order of the world, it will undoubtedly be the most serious blow to the global manufacturing supply chain. Almost all industries and enterprises are faced with various difficulties such as orders, raw materials, funds and so on. How to overcome the difficulties and to create business opportunities in the crisis, and to find a turning point, confidence is more important than gold.

As a major garment manufacturing industry in China, there are more than 8000 garment upstream and downstream businesses in Shishi. Since the beginning of this year, the epidemic has caused a great impact on small and medium-sized foreign trade enterprises. With the support of local governments, some foreign trade enterprises have set up "shared factories" to warm up. "Shared factory" not only provides resources for production, storage and other supporting resources for small and medium-sized enterprises, but also provides orders for difficult enterprises to solve the problem of supply chain payment for enterprises with financial difficulties, and the operating costs of enterprises can be reduced by half. Hu Huiming, chairman of "shared factory" and chairman of Shishi Huili International Trading Co., Ltd., said that at the end of March, Shishi's first "shared factory" had landed. Through the "order sharing" and "data sharing", 120 thousand overseas garments are stepping up production.

Quanzhou swimwear products accounted for about 30% of the world's output, of which exports accounted for more than 80%. Affected by the epidemic, the export of industrial enterprises dropped by 50%-70%. "In order to reduce the loss of foreign trade, many swimsuit exporters have changed from international brands to domestic brands," as the domestic market has warmed up. Shi Fangfang, Deputy Secretary General of Jinjiang swimwear industry association, said: "if foreign trade enterprises turn to the domestic market, the country will not be able to accommodate them. But companies must try to maintain the stability of their workforce. We encourage enterprises to extend their production areas according to market demand and do everything possible to find various orders.

"Crisis crisis, danger will be organic." Hong Jianku, chairman of the colorful fox swimsuit group, found that the demand for indoor sports products such as yoga suits and other indoor clothing products increased significantly, which is a good opportunity for the colorful fox. "Light sports products such as yoga clothes and fitness clothes are similar to swimsuit production processes, but they were ignored by swimsuits before. Now swimsuit orders shrink, increasing the production of yoga clothing and other products. Hong Jianku said that since the outbreak of the epidemic, the order of colorful Fox's Yoga costume has increased by nearly two times, with sales reaching 7 million yuan. Nowadays, by extending the production field, the colorful fox has opened a window. At present, they are building a fifty thousand square meter factory to prepare for the recovery and diversification of the market after the outbreak.

In view of the "post epidemic era", many experts have indicated that if textile trade companies want to avoid risks and stop losses in a timely manner, they must actively transform and layout the domestic market; while exploiting the market, pay attention to the utilization of online resources, shorten the repayment period, speed up the turnover of capital, and digest inventory in time. In particular, relevant state departments and local governments should introduce support policies in a timely manner so as to continuously upgrade the level of international trade facilitation and optimize the domestic business environment.

"In this case, in addition to the more effective implementation of stable foreign trade in the maintenance and expansion of customer channels, if necessary, we must retreat in order to actively expand the domestic market, combined with the upgrading of consumption." Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, said that although the enterprises had to bear various costs during the fight against the epidemic, they could not be considered to be "Wrongful money". Instead, they should focus on the big accounts, strengthen the follow-up power and safeguard the safety of the industrial chain.

In view of the severe foreign trade situation and the practical difficulties faced by our enterprises, recently, in the "two sessions", Chen Lifen, chairman of Jiangsu sunshine group, Wang Wei, deputy general manager of Shanghai textile decoration Co., Ltd., Dongfang International Group, Gao De Kang, chairman of Bosideng Group Co., Ltd., and other NPC deputies, put forward proposals on stabilizing export and maintaining a new competitive edge in foreign trade. We call on the government to increase support. In this regard, Premier Li Keqiang in the government work report stressed: in view of the current situation, we must concentrate our efforts on "six stability" and "six guarantees", and take the "six guarantees" as the focal point of this year's "six stability" work. We should keep the bottom line of the "six guarantees" and stabilize the basic economic plates. These are closely related to the textile and garment industry in many ways.

After all, the impact of the epidemic on China's economy is only temporary and phased, and will not change the fundamentals of China's long-term economic development. Under normal prevention and control of epidemic situation, we should co-ordinate efforts to promote epidemic prevention and control and economic and social development, do a solid job in "six stability", and fully implement the "six guarantees" task. This year's government work report puts forward more policy instruments, greater policy intensity and more focused policy objectives. Vitality.