Under The Impact Of The Epidemic Situation, How Do These Foreign Trade Textile Enterprises Do

As a textile worker for a lifetime, he never expected that he would experience the double impact of the once-in-a-century epidemic and the global economic recession. As we all know, China's textile industry has always been the leader in the export of textiles, and is the main force to obtain foreign exchange. This year is the end of the 13th five year plan. I wanted to make up for the loss of production stoppage as soon as possible after the epidemic situation in China has been basically controlled. However, the epidemic situation in Europe and the United States is out of control, and the economy has begun to stop. It can be said that the domestic textile industry is the biggest hit by the overseas epidemic. For a time, a large number of European and American foreign trade orders were cancelled, and the textile foreign trade industry appeared a rare cold winter. Many enterprises shut down due to the interruption of orders, the market turbulence, price reduction is becoming the daily "distress" of manufacturers. On the Internet, the words "stop work and have a holiday" are constantly emerging. Our colleagues are looking for a new way to get out of the dark and become the industry's top priority.

The pressure is beyond imagination

The impact of the epidemic on the economy, to be honest, most people are not prepared for it. It was originally thought that some well-known textile enterprises with large volume in the industry have strong strength and diversified operation, but they are only temporary difficulties. Once overcome, they will pass. Now it seems that there is no end in sight. The enterprises in operation can not afford to wait or lose. At present, enterprises should first consider how to survive.

Recently, the author visited several famous textile enterprises in Jiangsu and Shijiazhuang. The managers of these textile enterprises are quite different from each other before and after the new year. They were full of confidence, full of laughter and full of energy, but now their faces are full of melancholy and their mood is depressed and they are not willing to accept customers. The chairman of Shenzhou was worried that the number of workers returning to work was not complete, which would affect the breach of the order, and could not close his eyes for several days. At present, China has the most complete clothing industry chain in the world. 60% of the world's clothing products are produced in China, and the output value accounts for about 70% of China's foreign trade surplus. The owners of these factories are extremely anxious these days. The boss of a foreign trade enterprise in Keqiao, Shaoxing, said that the impact of the overseas epidemic is fatal. The orders of European factories are reduced and the inventory is overstocked. Half of the payment for goods may not be recovered. Many factories don't have cash flow for three months. Due to the aggravation of the epidemic situation, the European and American markets are in a serious depression and it is difficult to recover in a short time. In order to survive, many brands are eager to ship, and the boss takes the lead in selling products at a price lower than the cost in the circle of friends.

The epidemic disrupted normal operation

A 120000 spindle cotton spinning factory in Jiujiang, Jiangxi Province, is a manufacturer of foreign trade characteristic products. Even though the cotton textile industry is in a low ebb and the Sino US trade war, it has not been greatly affected. Its products are exported to Europe and the United States, and some of them go to Africa. The profit per ton of yarn is more than 12000 yuan of the same trade. It has not lost money in more than ten years. Due to the impact of the epidemic, orders from the United States and Japan are basically gone. In particular, due to the domestic logistics blocked, cotton procurement suffered a big loss, only in the first quarter of this year a serious loss.

At present, production has returned to normal. However, after the capacity gradually recovered, there were two shocks: one was that cotton futures were impacted by three fusions of US stocks. The price of cotton futures dropped from 14300 yuan / ton to 9930 yuan / ton, and the spot price dropped by nearly 3000 yuan / ton. The average price of more than 1500 tons of cotton in the factory before the year was 14150 yuan / ton. In addition, due to the epidemic situation, more than 1000 tons of cotton in Xinjiang could not be pulled back, resulting in an average loss of about 3000 yuan per ton of yarn The second shock is that the delivery of goods does not go to destroy the order or the external order is broken, cancelled and blocked by logistics. There are only sporadic small orders, and the collection time is more than 3 times longer.

Talking about the experience of cotton purchasing, the general manager of the company felt that the payment for cotton in Xinjiang had been paid a year ago, but the goods could not be delivered in Xinjiang after the year, so they were not allowed to enter. The cotton transport drivers were quarantined for 14 days, and then they were quarantined for 14 days when they came back. Such a toss, considering all kinds of increased costs (during the period of isolation) and transportation costs to Xinjiang, the driver can hardly bear it. One month's delay is like one person in charge of the epidemic situation.

At present, the order is a year ago, but it is estimated that it will be very difficult to handle the second half of the year. Considering that the loss of one ton per ton and the cancellation of orders from several major customers, we will temporarily cut production by half and take five days off in turn. Unless the global epidemic situation is controlled from April to June, it will be difficult to continue. If at least one third of the economic recession in the United States is predicted by economists, it is the most likely that some American enterprises will not be able to survive the financial crisis in 2008.

Current situation of textile enterprises

It is not the leading enterprises in the industry, such as the textile industry, such as sunflower, sunflower group, sunflower Textile Group and so on 。 Recently, according to the prediction of WTO, the economic recession and unemployment may be more serious than the global financial crisis 12 years ago, and trade is expected to decline seriously.

The epidemic is disrupting the pace of global production, life and market. Consumption shrank sharply, overcapacity intensified, the market and factories were cold and quiet, and the news of suspending, slowing down and cancelling orders continued to be heard. The author interviewed a few cotton mills, also confirmed that the actual situation is really grim.

A cotton textile factory in Jianhu, Jiangsu Province, resumed work after the year, and there was still the last batch of 500 tons OEM processing orders provided by Sanyang. However, I did not know what to do next. As the equipment could only be used for conventional cotton varieties, the cotton price fluctuated violently, and the yarn price fell endlessly, facing the risk of loss. Due to the low market price of yarn, the original rotor spinning equipment is basically unable to produce. In the surrounding area of Jianhu, all the rotor spinning manufacturers have stopped, and there are laid-off maintenance workers and operators looking for jobs in the market. In the past, acrylic core spun yarn and differential yarn are not available.

There are the following problems in the cotton mills around Jiujiang, Jiangxi Province: the triangular debts reappear, the funds are in debt, and the goods can not be paid back; the personnel can not be arranged at the beginning of the construction, Jiangxi is close to Hubei Province, and Hubei personnel can not be on duty; in addition to the normal opening of a factory in Jiujiang, the remaining seven or eight 20-30000 spindle mills are basically temporarily off (half a month to one month), and the situation will be determined after observing the situation; inventory volume The pressure has already approached the limit. The production has been limited by 50%. The customer has broken the order, and now there is no chance to talk about it. Suppliers dare not do it, they dare not pay on credit. Factories dare not do it. They have no cash to buy raw materials.

How to survive the impact of the epidemic

Risks and opportunities coexist, internal control of the epidemic situation and input rebound. Although the domestic economy has been improving for a long time, the risks in the world economy are expected to decline in the medium term, and it will take time for the market to recover. Investment projects need to pay attention to the isolation policy, control the time required for the spread of the epidemic and the final economic cost. It is necessary to carefully and actively adjust the response, preserve the strength, and fight against possible long-term uncertain risks The shareholders, management and partners of large textile companies unite to support the company through the once-in-a-hundred-year difficulties, make a good and orderly development, and be ready to go.

Model of small and medium sized cotton textile enterprises

The impact of the epidemic on all textile enterprises is the same, but the final results may be quite different. This is not true. After the epidemic, the tycoons started driving in early March, 90% of them were on the stage, and all of them were opened in less than 10 days. After the year, the company ordered a lot of orders. At the end of April, many customers came to ask for help. The orders were from Vietnam, South Korea, Japan and a small amount in Europe. Due to the trade war between China and the United States, the United States did not consider dealing directly with the United States, but also made some indirect goods to the United States.

Their success: first, they focused on the selection of four domestic key high-quality enterprises -- Lutai, deyongjia, Shenzhou and Changzhou xurong knitting, and focused on the key quality problems according to the customer's technical requirements, with 50s ~ 80s as the main high-end products, accounting for 70% of the total production; second, the production of differentiated conventional varieties, due to the increase in average number of employees, more people are arranged to live The company produces 30s-32s coarse products, but the varieties with high added value and high-quality old customers have the best performance price ratio. At the same time, it maintains the balance of production capacity and customer demand, accounting for 30% of the total production volume. Thirdly, it adheres to the business idea of differentiation and high added value, opens up the later high-end industrial chain, and connects the customized and top grade yarn with the customer's use.

Of course, if the global epidemic situation is not effectively controlled in June, the tycoons will not be alone and will also face future inventory and capital pressures. Fortunately, at present, all the funds are self raised, and there is no bank interest. The money earned every year is used to carry out targeted transformation. Since 2011, the spinning frame has been transformed into 30000 spindle Siro compact spinning, 20000 spindle siro spinning and some core spun yarn devices. In 2019, we will speed up the transformation of three major projects, namely, spinning single spindle detection, short car collection and compact spinning. Through the transformation, the tube yarn forming will be generally improved, and at the same time, the self winding production efficiency will be improved by at least 2%.

· pay attention to the risks in the production of medical and epidemic prevention products

In the face of the sudden "refund tide", many garment fabric foreign trade enterprises actively self-help, switch to the production of masks and other anti epidemic materials. As early as early as early February, China export and credit insurance company issued a risk warning for the supply and demand of masks. Medical melt blown nonwoven materials with 95% filterability and effective virus prevention should be used as masks. In Xiantao City, Hubei Province, the output of non-woven fabrics accounts for 60% of the total output of the country. On February 1, Xiantao City shut down all local manufacturers of civil masks in order to control the production quality of medical masks and prevent and control fake and inferior products from entering the market. China's Ministry of Commerce issued standards, from April 1, China's anti epidemic materials exports tightened, only the EU, the United States certification without China's registration can not be exported! The European and American standards of medical products are the high technical threshold in the world at present, so long as they are proved, they will be released. It is impossible to enter the European Union without CE certification, and cannot enter the United States without FDA certification. N95 masks must meet the standards and certification of noise-n95 before they can be used in the United States. "CE" and "FDA" certification may lead to the failure of customs clearance at the port of destination, resulting in huge costs such as fines and logistics, transportation and warehousing.

Online live broadcast to expand domestic demand channels

The epidemic situation has changed the consumption habits and consumption demands, and the epidemic has changed the original living habits of different generations. Affected by the epidemic situation, people are less likely to go shopping at home, and more and more consumption behaviors are solved through the Internet. For the textile industry, the embodiment of a strong domestic market needs good channels, and online live broadcasting has become an important choice worth trying. On March 31, a live webcast called "director selling yarn" was held in the conference room of Shandong Provincial Department of industry and information technology. On March 14, 2000 wool weaving enterprises in Dongguan took the lead in opening a live broadcasting exhibition hall with the help of e-commerce platform, which attracted a considerable number of consumers. The multi-dimensional display, strong interaction and authenticity of the live broadcast can effectively alleviate. The live broadcast is not only to sell goods, but also to realize the amplification of high-quality shopping guide sales ability, multi-channel communication, and efficient management of members, so as to enhance the fine operation ability of the brand. In the face of the difficult situation, all clothing enterprises are actively seeking countermeasures. Most business owners have said that the primary goal is to survive first and wait for consumption recovery after the end of the epidemic.

Do a good job in foreign trade layout prediction in advance

In order to reduce the export risk, the "eggs" should be put in several baskets ahead of time to enhance innovation. The west is not bright and the East is bright. On the one hand, it adjusts the export direction, and at the same time, it starts to develop innovative products. The export trade to Europe and the United States is temporarily distributed to other countries and regions. Shaoxing Gaogu import and Export Co., Ltd. is persistent in innovation and R & D, so that "Gaogu" products and overseas brand clothing manufacturers are in perfect harmony. Recently, the company has just developed a 3D lace fabric, which is especially popular with foreign customers. There are countless customers who come to inquire and ask for samples. There are also many interested customers, and mass production can be achieved immediately.

Get through the tough times with a positive attitude

· macro policies include loose economy and monetary measures

Not long ago, G20 countries held a video conference and announced that they would launch a $5 trillion economic boosting plan to deal with the negative impact of the epidemic on global society, economy and finance, which, to a certain extent, played a positive role in market sentiment. Interest rate reduction and quantitative easing at the level of monetary policy have become the core of the current multinational economic response measures. Emerging economies are no exception. The central banks of the Philippines, South Africa and Malaysia announced interest rate cuts on March 19. On April 3, the people's Bank of China (PBOC) made a targeted reduction of RMB 400 billion in liquidity and cut the interest rate of excess reserve to rescue the market, which was also the third time in the year that the RRR was lowered, with a total investment of 1.75 trillion. In the middle and late April, the refinancing will increase by 1 trillion yuan on the basis of the previous 500 billion yuan, in order to support the development of the real economy, promote the increase of support for small and medium-sized enterprises, and reduce financing costs. Hou Bangan, deputy director of Guangzhou Municipal Taxation Bureau of the State Administration of Taxation, said, "after the policy was issued, 40 foreign trade enterprises have applied for tax refund, and the tax refund has reached 147 million yuan.".

The Ministry of Finance and the Ministry of transport announced that the port construction fee for import and export goods would be exempted from 0:00 on March 1 to 24:00 on June 30. The Ministry of Commerce, together with China Export Credit Insurance Corporation, underwrites the loss of Importers' commercial and political risks in the process of export business.

· simultaneous development of domestic and foreign markets, waiting for international market recovery

From the perspective of stable operation of textile enterprises, upgrading of industrial structure and balanced development of economy, due to the aggravation of epidemic situation in textile export areas and the increase of "breakpoints" in international industrial chain, it is necessary to improve the layout of textile industry chain in Southeast Asia, open up domestic industrial chain and supply chain, and improve global rapid response and response capacity. When it is necessary to expand the domestic and foreign trade market, it is necessary to develop more channels for domestic and international consumption.

· strengthen confidence and overcome difficulties

In view of the labor, logistics, market and other factors that restrict the current textile production, it is necessary to think from multiple dimensions, make full use of various sales channels and diversified consumption fields, tap the potential of internal and external markets, and orderly improve the utilization rate of production capacity.

Textile enterprises must establish confidence, believe in the central government and the government, firmly win the battle of epidemic prevention and return to work and production. It can be predicted that the market will not improve in the first half of this year, so they should be prepared for a long-term battle.

The outbreak of new crown pneumonia is a disaster for mankind, but it is also an opportunity for the transformation and upgrading of the global industrial chain. China should seize the opportunity of some industries in Europe and the United States and economic recession to speed up "attracting capital to supplement the chain" and ensure the healthy development of industrial chain clusters. When the foreign market recovers, it is necessary to further strengthen international cooperation, expand the scale and development quality of industrial clusters, and drive the great cycle of global industrial chain.

The long-term basis for China's macroeconomic development will not change. We should put more emphasis on the policy of stabilizing the growth of small and medium-sized enterprises and putting more emphasis on the prevention of domestic risks. In view of the impact of the epidemic situation, the state has begun to introduce a variety of support policies to help enterprises gradually ease the operating pressure.

CFA has put forward policy suggestions to relevant government departments to ease the pressure of enterprise capital turnover as soon as possible, further reduce the burden of enterprises, and continue to ensure the resumption of work and production. It also suggests to study and deploy policy plans in advance to start domestic consumption and stabilize the competitiveness of export products after the epidemic. As long as colleagues work together, rely on all staff, overcome all difficulties, we will certainly usher in a new future.

Miao Dingshu, Suzhou Textile Engineering Society