Mckinsey Data Show That The World Textile Industry Is In Crisis Due To The Epidemic Situation

According to the Spanish "national" website reported on March 1, 2020 will make the world's textile and clothing industry suffer a heavy blow. First, closed isolation against the epidemic, and then restrictions on business and leisure activities, as well as telecommuting and worse economic prospects, all limit the desire to wear new clothes and the possibility of doing so. As a result, about half of the world's people wear sportswear most of the year. People do buy a lot of things online, but not enough to offset the economic collapse.

According to a survey by McKinsey consulting, the crisis has cost textile and garment enterprises 30% of their sales and 90% of their profits worldwide. The advent of the vaccine gave hope to the industry at the end of last year, but the slow progress of vaccination may prolong the suffering period of the textile and clothing industry, at least until this summer. "Uncertainty" is a word that reporters hear the most frequently when consulting enterprise managers and experts on the business development prospects in 2021. Industry insiders believe that in 2021, the textile and clothing industry will not be able to recover the lost land. The industry will also experience some changes: production activities closer to the market; more flexible supply; smaller, cheaper and more durable product sets; less seasonal relevance; more emphasis on sustainability.

According to the report, the emergence of a pandemic a year ago has greatly impacted the textile and clothing industry. The forced suspension of operations has dried up the industry's revenue sources and forced many well-known European and American brands to protect their cash flow capacity by cancelling and delaying orders (even some are already in progress) or delaying payments. "During the period of isolation in Europe, we extended the payment time to all suppliers by 30 days," said a Spanish clothing company official who asked not to be named. It has a great impact on them, but it is a matter of our survival. It wasn't until last August that we started the supply chain more or less. "

The impact hit the other end of the chain, with large numbers of employees employed by textile and apparel companies (many of them concentrated in Asia), the report said. According to a survey conducted by organizations concerned with labor rights around the world, 38% of employees in textile and garment enterprises (sampled in nine countries and regions) lost their jobs in 2020, and these employees and their families were generally affected by poverty and hunger.

Although the initial impact has been reduced and production and trade activities have gradually returned to normal, the successive outbreak of the epidemic has brought new trade and personnel mobility restrictions. According to McKinsey & company, by the end of last year, the global textile and clothing industry lost 20% to 25% of its sales, including 25% to 30% in Europe and 20% to 25% in the United States. According to the specific conditions of different countries and regions, it is expected to wait until the end of 2022 or the end of 2023 to restore the industry data level in 2019.