Overseas Epidemic Hits Foreign Trade Enterprises Dongguan Factory'S Original Order Cancellation

Looking forward to the domestic enterprises with ease of disease and eager to return to work, they are facing the plight of shrinking orders in the US and Europe.

In March 21st, Dongguan precision watch Co., Ltd., a Fossil watchdog for the wrist watch brand of the United States, issued a notice in the factory, voluntarily discouraged employees, asked them to find a better job, and the whole factory was on vacation for at least 3 months, affecting at least 600 precision watch employees.

It is worth noting that in March 23rd, Ma Hua, deputy director of the Guangdong Provincial Department of Commerce, also announced that because of the global epidemic situation, the 127th spring Canton Fair will not be held as scheduled in April 15th.

The industry believes that the precision watch industry is only a microcosm of foreign trade enterprises trapped. Under the impact of the global epidemic, European and American customers have no time to place orders, and the original orders are all suspended or canceled. At the same time, if foreign trade orders come back again, domestic foreign trade enterprises may not be able to digest them, because foreign trade enterprises need to retain production workers within 3 months of zero income. Few factories can survive the capital and need the state to give foreign trade enterprises policy support.

　 Precision watch workers worry

In March 23rd, the Sha Sha community in Changan Town, Dongguan City, with a temperature of 26 degrees Celsius, the truck on the road was in an endless stream. Cars on both sides of the road were full of cars, and restaurants and small shops were basically open.

The precision watch production workshop is located on the Xinhua Road, which is about 500 meters long. When the Securities Times reporters arrived, they were catching up with the factory workers, and workers dressed in blue clothes came out, packed with fast-food restaurants around the factory.

"I came out of Guangxi in February 7th and took less than two months to get a job." A 25 year old young worker and journalist took up his home routine. His factory was precisely the watch industry that was shut down due to the epidemic. The notice was issued just last Saturday (March 21st).

"I still don't know which day I can go to work. My colleagues are talking privately. If they finish the goods, they may be leaving." Another Guangxi youth said this is also the most worrying thing for everyone.

The notice of the precision watch industry mainly consists of 6 contents: the company accepts all staff members (regardless of rank or post) and resigns. The urgent resignation is that they do not deduct the submission of the notice money; from the date of submitting the resignation application, the wages in February will be paid according to the relevant regulations and personal actual attendance days or piecework wages; from now on, the resignation staff will be paid in full in March according to the normal wages, and will be resigned immediately. All the employees' salaries will be settled in cash in February and March. All employees who resigned should go directly to the company's human resources department for settlement and wage settlement procedures. The company will make a whole plant holiday arrangement for 3 months according to the needs of operation and situation.

"The factory said, the epidemic impact, there is no order in the United States, no one wants to produce watches." The workers looked carefully at the contents of the notice, and understood the factory's persuaded retreat and holiday arrangements in their own words, but they could not accept it emotionally.

　　 Fossil stop ordering

Good enterprises, strong strength and good welfare benefits are the evaluation of the precision watch industry heard by the Securities Times reporter. In fact, there are several watch factories in the Sha Sha community. They work in different buildings in the same factory, but they have close relationship with each other. For example, precision watch industry and Xinxing watchcase Products Factory Co., Ltd. is working in the same factory area.

The company's doorway publicity column shows that Xinxing watch industry was established in 1993. It is a large Hong Kong funded enterprise mainly producing high-grade watchcase and watchband products. With the further expansion of the company's planning, Xinxing joint venture was established in 2006, including Xinxing, precision and precision three joint factories. The company has more than 3000 employees, specializing in the manufacture of precision watch case, watch band and high-grade stainless steel jewelry series.

"They are a family. This watch factory is not only one of the top companies in Dongguan, but also has a reputation in the national list companies." According to his understanding, when a precision watch industry is good, one month's output can reach more than ten million.

On Jingdong, Fossil watches were included in Jingdong's proprietary product range, ranging in price from 890 yuan to 1340 yuan. According to this calculation, the most conservative estimate is that the annual output value of the precision watch industry is at least 1 billion yuan.

According to the industry, the Pearl River Delta region is one of the focuses of clocks production in China. Under the irrigation of Hongkong and Taiwan capital, a large number of enterprises producing clocks and watches in Europe and America are concentrated. Dongguan is quite typical. Relying on external orders to survive the foundry factory under the impact of the new crown disease is facing the test of survival. Precision watch industry is a typical one.

The precision watch industry said in the notice that at present, the new crown pneumonia epidemic is rampant around the world, especially in Europe and America. The most important customer of the company, "Fossil", belongs to the US brand. Now it has stopped placing the order. At the same time, it requires the cancellation or suspension of the original production order, resulting in the factory unable to start normal operation. The company has a major crisis and faces the risk of shutting down at any time.

It is understood that Fossil specializes in design, marketing and distribution of consumer fashion accessories business. The company's business units across the Americas, Europe and Asia are listed on Nasdaq, code FOSL.

The employees in the precision watch industry are discouraging and leaving office, not only the employees of the precision watch industry, but also the employees of Xinxing watchcase. "They are brothers, but they may have different sales channels. At present, Xinxing has not heard of redundancy or retreat, but our products are also mainly exported, and they will definitely be affected." A Xinxing watchcase employee said.

　　 Foreign trade enterprises face the gloomy time

Precision watch industry is only a microcosm of the difficulties faced by foreign trade export enterprises.

"In fact, the problem is very simple. European and American guests are in the epidemic situation at present. There is no time to place an order, and the original orders are all suspended or cancelled. This led to the fact that Chinese factories could not produce any orders after resuming work, which is the problem of globalization. " Dongguan City Association of Taiwanese businessmen, former Deputy Secretary General of the building to the Securities Times reporter said.

In an interview with reporters, Lou Da was in Portugal's factory in Europe. "Although Portugal has no serious neighbours in Spain, Portugal has also launched an emergency for 4 days, nearly 2000 people have been infected, and the country has almost stopped, and the workers infected by the factory are basically going to stop working." Lou Da said.

The reporter understands that the global electricity supplier giant Amazon, which has undertaken the customer logistics and distribution, has also suspended the receipt and distribution of orders for ordinary consumer goods in the serious epidemic areas in Europe and the United States.

"From last week to April 5th, the storage space for important materials such as medicines and foodstuffs has been vacated. Warehouses in the Amazon, the United States, Britain and other places no longer receive non essentials, and sellers may not have any stocks after selling out of non essential items such as cell phones and toys." An employee of Amazon store in Shenzhen told reporters that if they did not sell necessities and drugs on Amazon, they could only wash and sleep.

"It should be three months before the epidemic slows down. Now all the production units of foreign trade are almost zero orders. Lou Da people said that in three months, if orders return, there will be many urgent and many situations, which will not be able to digest at that time.

Lou Da people said that these foreign trade enterprises also need to retain production workers within three months of zero income, so that production can be resumed immediately. "Few factories have such capital until that time". The state needs to introduce corresponding policies to support foreign trade enterprises, such as tax relief and issuance of stable subsidies, so as to help them tide over difficulties.