At present, the epidemic situation of new pneumonia in China has been effectively controlled, and all industries and industries have gradually resumed production in an orderly manner. However, overseas epidemics have accelerated, and many defense controls have been upgraded, including the United States, Italy, Spain, France, and Germany. With the implementation of overseas closure measures, a large number of brand retail stores were closed, and consumption in the end market was immediately suppressed. Many international apparel brand retailers began to cancel orders in large quantities. China's textile foreign trade enterprises that have just tried to straighten out the upstream and downstream production and supply channels have encountered a second round of difficulties in a short period of time.
Cancellation of foreign orders surprises suppliers
A large number of foreign trade customers withdraw orders in the short term, which has brought great uncertainty to the development of foreign trade enterprises this year. In the developed areas of Jiangsu and Zhejiang Textiles, it is very common for enterprises to encounter withdrawal orders.
Zhang Weifeng, general manager of Zhangjiagang Free Trade Zone Mingtu Chemicals Co., Ltd., which has been engaged in the dyeing and chemical industry for more than 20 years, told the China Textile News reporter that in the past week, the cancellation of orders from overseas customers has been particularly serious in Germany, France and the United States. In the area of Keqiao, Shaoxing, Zhejiang, many dyeing factories were affected, and about 70% to 80% of the companies encountered withdrawal orders. The printing and dyeing enterprises that were prepared to make up for the loss on time before delivery. The newly purchased grey fabrics are still piled up in the workshop. Now, after receiving the cancellation notice, production can only be suspended. The corresponding market demand for dyestuffs has also dropped significantly.
"Now the biggest difficulty is not the flow of capital or other problems, but the cancellation of orders. Some companies have just stopped printing and dyeing as soon as the grey fabrics arrive at the dyeing plant. Many local companies produce chemical fiber and flannel products. The seasonality of the products Very strong, some small enterprises are renting factory production, and now missed the order of the season is not only a business problem, but also missed a season. "Zhang Weifeng explained.
In addition to the emergency stop of the production link caused by the withdrawal of orders, the completed orders also have the risk that they cannot be shipped and the destination port does not accept the goods, and the export risk of the company suddenly rises.
Jiangsu Changzhou Dongao Garment Co., Ltd. is an enterprise specializing in the production of denim casual clothing for Levi's brand. The products are exported to French, German, British, Italian, American and other European and American brands. The factory has 19 production lines and more than 1,300 There are 340 employees in the washing plant alone. The company has a relatively complete upstream and downstream production supply chain. After the Spring Festival, the company started working normally since it resumed work. According to a reporter from the China Textile News, Dongao has also recently withdrawn orders. For example, American customers have clearly requested that if the existing orders can be shipped before April 2 to complete the shipment, they can also be accepted, and the port cannot be accepted after the deadline. Therefore, enterprises are working overtime to catch up with production, and can basically reach the deadline for shipment.
Jiangsu Taizhou Weina Fashion Co., Ltd. is a fashion export enterprise with an annual export volume of approximately 30 million pieces. Recently, two consecutive export orders were cancelled by customers.
After the order was cancelled, Wuxi New Belden Garment Co., Ltd. decided to take two months leave for the employees due to lack of order. "Some foreign customers' communication with suppliers is: If the grey cloth has been cut and put online, the finished products can continue to be delivered, but the price will be discounted, and the customer needs to be discussed again; if the enterprise has not arranged the grey cloth On-line cutting, then this part of the order customers no longer want. "Some people familiar with the matter told reporters.
Overseas epidemic spread spreads the impact period of production and marketing
According to the statistics of the General Administration of Customs of China, under the influence of the epidemic, China ’s textile and apparel exports were US $ 29.83 billion in the first two months of this year, a year-on-year decrease of 20%, which was higher than the average level of 17.2% year-on-year decline in national goods trade exports. The long supply chain of textiles and apparel production, coupled with the formation of global distribution characteristics, has caused the textile industry to be more impacted than other manufacturing industries, and the situation is more severe.
The sudden cancellation of orders for terminal brands, superimposed on the recent sudden plunge in the prices of upstream raw materials such as crude oil and cotton, has made products that are still in circulation and raw materials that have been purchased at relatively high prices and have not been processed, become the inventory of textile production plants. Large losses were formed. This makes foreign trade enterprises face extremely severe challenges.
At a webinar recently organized by the China Chamber of Commerce for Import and Export of Textiles and Shanghai Xiwei, the theme of "Crisis and Outlet of China's Textile Industry under the New Crown Virus Epidemic", Wang Lizi, a researcher at Dunwa Industrial Investment Management Co., Ltd. Jie analysis believes that at present, from an international perspective, the restrictions on the movement of people in countries with serious epidemic conditions have just begun, the duration is still difficult to predict, and the retail industry is facing relatively large losses. In the second quarter, foreign countries will repeat the situation in China's first quarter with a high probability, and the short-term market demand will decline steeply.
Dunwa Industry Analysis believes that from the domestic point of view, the market is mainly affected from February to March, and the main impacts are three points: First, the window period of spring clothing sales is greatly shortened, and there will be basically no chasing orders. Spring clothing backlog It is a foregone conclusion. Second, orders for summer clothing need to be observed. Due to the problem of capital flow, it is difficult to experience explosive order growth. Third, the pressure of the epidemic on consumption will slowly manifest itself. However, the current overseas epidemic situation is fermenting, which will affect China's export production from March to June. Some overseas summer orders are facing the possibility of temporary cancellation, which has a great impact on the production side. In addition, the duration and impact of the epidemic determine the status of overseas autumn orders.
"Withdrawal tide" affects global supply chain
According to another reporter, in the global textile supply chain, it is not only China that has encountered cancellation of foreign trade orders. Bangladesh, one of the major suppliers of global textiles and apparel, is also playing the same story. Some media reported that in the past week, Bangladesh's garment industry is facing the brink of disaster. Rubana Huq, chairman of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that 490 factories in Bangladesh have received cancellation notices for garment export orders worth US $ 1.5 billion. She called on retailers not to cancel confirmed orders and continue to accept orders before July, after which companies will gradually adjust their inventory. "Because we need to pay wages to workers, we have real problems that need to be solved, and we can't starve 4.1 million workers. Brands were partners with us last month, and now they are like strangers," Hu Ke said.
Since many brands of spring and summer models are basically in their hands, some may be postponed to fall in the market to reduce losses, which will directly reduce the demand for autumn supply. Some analysts believe that due to different national conditions and cultural differences, the epidemic control situation in Europe and the United States is still difficult to judge. For textile and apparel export companies and suppliers, the reduction in orders may continue.
Influenced by the epidemic situation, the market supply and demand situation tends to deteriorate, forming a short-term supply and demand mismatch. The textile and apparel industry is very close to the international market. From this point of view, the textile industry will be more difficult in the short term.
"This year is destined to be the most unusual year. How to survive tenaciously is the biggest problem that needs to be faced." Many export companies think so.
