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The epidemic is spreading globally. How can textile companies respond to the challenge?

Release Date:2020-03-25


                                           


  

At present, the epidemic situation in China is well controlled, but the epidemic situation overseas is getting more and more serious. Among them, countries with more severe epidemics include Italy, Germany, Spain, France, Iran, South Korea, and the United States. Due to the impact of the epidemic, many industries have been impacted, and some brands have taken actions to combat the epidemic.


Due to the spread of the global epidemic, Chanel has announced that it has ceased production and will close production bases in France, Italy and Switzerland for two weeks. These include production lines for Chanel watches, haute couture, ready-to-wear and fine jewelry.


Under the impact of the epidemic, Nike's stock price has fallen by more than 25%, and its market value has evaporated by more than $ 40 billion. On March 15, Nike announced on its official website that in order to prevent the spread of the epidemic, the company decided to temporarily close stores in multiple countries / regions, including the United States, Canada, and Western Europe, during the period from March 16 to March 27. , Australia and New Zealand. However, Nike stores in Japan, South Korea, most of China, and other countries have already opened and will continue to operate as usual.


On March 18, Adidas issued an official statement on Ins, temporarily closing its stores in some countries. It is understood that since the Spring Festival, Adidas' business in Greater China has decreased by about 85% year-on-year. China accounted for 20% of Adidas' 2018 sales. Adidas expects operating profit in Greater China to decrease by € 400 million to € 500 million in the first quarter of 2020.


UNIQLO announced on March 17 that all 50 stores in the United States will be closed. In addition to China and the United States, Uniqlo also closed its sole store in Italy on the 12th, closed 4 stores in Spain on the 13th, and closed 22 stores in France on the 14th.


紡織 For the textile enterprises, the current market has marked the textile industry with a "miserable" label in the first half of the year. A small number of textile bosses have already begun the idea of starting construction later. Protecting orders, guaranteeing markets, and fulfilling contracts are the biggest challenges now. The premise of all this is the stable promotion of orderly resumption of work and production.


At present, with the support of a series of national policies, export textile enterprises are achieving orderly resumption of production. Some companies have strong technical capabilities, and have transformed their production of masks and other medical prevention and control materials, and have a higher rate of resumption and resumption of work. Some companies that are still mainly engaged in traditional businesses have relatively unrecoverable situations.


A Zhejiang-based export company principally focused on the European men's jackets. Europe is becoming the new epicenter of the epidemic. The closure of multi-country routes has resulted in poor logistics and severely hindered export shipments. At the same time, the epidemic situation in European countries is still spreading, residents' lives are affected, local clothing consumer market demand is weak, and orders have dropped significantly.


Under the dual impact of the Sino-US trade friction and the new crown pneumonia epidemic, a carpet exporter from Shandong felt great pressure on the United States. The person in charge of this company said that the United States is currently suffering from an increasingly severe epidemic, the exhibition is postponed, and the tourism industry is stagnant. The company ’s demand for carpet products for local hotels and conference centers and other places has fallen sharply, and new hotels should have been postponed. Or the suspension of work, the carpets of the conference venues to be updated will not be changed, and the market share that was originally affected by the Sino-US trade friction is once again compressed.


At the same time, despite the high resumption rate of export textile companies, most enterprises still face difficulties such as shortage of workers, asynchronous resumption of work between upstream and downstream enterprises in the industrial chain, and lack of protection resources.


There is great uncertainty in the current development trend of the global epidemic, and the stable operation of the market must go through a longer recovery period. Therefore, the confidence of export textile enterprises has been frustrated.


Due consideration for domestic and foreign trade


足 Use the network to expand orders


Some experts suggested that under the current situation in China to effectively curb the spread of the epidemic, textile and garment export companies may wish to give due consideration to the domestic market. In the short term, it is also possible to transfer foreign trade to domestic trade. While maintaining its original position, it can appropriately develop domestic trade customers to achieve both development and maintenance, so that it can keep the company running, and it will not be difficult to continue because there are no orders.


A person in charge of a Guangdong children's clothing company said: "Almost 50% of our company's business is in European countries. If the European epidemic continues to spread, the business will definitely be affected. Now we are considering whether to adjust the proportion of domestic and foreign trade and focus on domestic . "


Some experts also suggested that although the new crown pneumonia epidemic has spread to many countries around the world, there are not many large-scale outbreaks. It can shift the focus of foreign trade sales to areas with less or no outbreaks, and open up overseas markets.

       
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