Yuncheng County Textile And Clothing Association Suggested That The Industry'S Wages Should Be Reduced By 10% As A Whole

The textile and Garment Association of Yuncheng County, Shandong Province, issued a notice on August 24, suggesting that textile enterprises in the county should temporarily lower their industry wages by less than 10% in order to cope with the new epidemic situation and the crisis of production restriction and production suspension caused by the international situation.

It is understood that the association has informed all enterprises to do a good job in ideological work of employees, so that employees can understand the severity and long-term nature of the whole economic situation, and actively reflect the current situation of the industry to the superior departments, so that the superior departments can timely understand the real situation of the industry.

Clothing consumption in the downstream shrinks, impacting upstream raw material enterprises

Under the new crown epidemic, the clothing industry has suffered a heavy setback, and even is experiencing a rare "great retreat". Some experts predict that the overall revenue of the clothing industry will be reduced by at least 400 billion yuan this year, and the overall market scale will shrink by 15%. Most clothing brands are facing risks.

Cheng Weixiong, an expert in textile and garment brand management and general manager of Shanghai Liangqi Brand Management Co., Ltd., said, "this year is the most difficult year for the clothing industry since the reform and opening up." After decades of rapid development, the domestic clothing industry itself has been in a state of overcapacity, and the epidemic has accelerated the decline of the industry.

"If clothing consumption is not good, it is bound to form negative feedback on upstream raw materials, and then there will be a sharp drop. This year, cotton, chemical fiber raw materials and other upstream textile materials all hit a new low in recent years, and chemical fiber has even hit a new low in history due to the sharp drop of crude oil." Shanghai international cotton trading center information director Wang Qianjin said.

In the face of rare industry impact, how should garment people carry out self-help?

Cheng Weixiong, general manager of Shanghai Liangqi Brand Management Co., Ltd., said that the "great retreat" of the clothing industry was inevitable after the rapid development of the domestic clothing industry in the past decades, and the epidemic situation accelerated and aggravated the industry reform. He believes that the clothing industry is difficult to get out of the development dilemma in the short term, and the industry adjustment will last for one to two years. During this period, the backward production capacity will be eliminated, and the strong will continue to be strong, and the domestic clothing industry will gradually begin to move from extensive to refined.

In Cheng Weixiong's view, in the current plight of the clothing industry, the top priority for enterprises is to do a good job in internal control, ensure cash flow, and strive to survive. Secondly, the Internet is promoting the upgrading of the clothing industry. Enterprises should make full use of new tools, new platforms and new technologies to tap market demand and activate consumption potential. In addition, the overcapacity of the domestic clothing industry is mainly due to the homogenization and low-end competition of the industry. Therefore, it is suggested that enterprises should make great efforts in technology research and development, strengthen the innovation and application of original design and surface accessories application, such as the development and application of environmental protection and healthy fabrics, so as to enhance the added value of enterprises and products and enhance the competitiveness.

Enterprises have to cope with the downturn in the market. A person in charge of a textile enterprise in Wuhan said that the original enterprises mainly engaged in the medium and high-end cotton yarn market were restricted by foreign trade export, because the high-end yarn market declined sharply, they could only develop the domestic medium and low-end market.

However, it is not easy to enter the domestic low-end market. According to the introduction of enterprises, foreign trade orders are mainly high-end yarn, and domestic market is mainly low-end yarn. Affected by the epidemic situation in foreign countries, enterprise orders are mainly for the domestic market. With the restoration of normal production order in China, the traditional enterprises which had been deeply ploughing into the domestic market have maintained stable orders and full production capacity due to their stable customer relationship. However, some enterprises engaged in foreign trade or production of medium and high-end products are under great pressure. As outsiders in the domestic market, it is not easy to squeeze into this circle.

We may have to be ready to fight a protracted war against the new crown epidemic, overseas market and domestic demand downturn!