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The Global Epidemic Situation Is Anxious. Foreign Trade Orders Are Stagnant Or Enterprises Are Slowing Down.

2020/3/30 10:14:00 2

Global EpidemicForeign Trade Orders

At present, the global epidemic situation is anxious. World Health Organization data show that as of Central European time 18 on March 28th (Beijing time March 29th 1 hours), the global diagnosis of 575444 cases of new crown pneumonia, 26654 cases of death. At present, there are 201 cases of new crown pneumonia cases in the world, and more than 490 thousand cases of new crown pneumonia cases outside China.

Today, 60 countries have declared a state of emergency due to the outbreak of the epidemic. Many countries have adopted measures such as sealing up the country, stopping production and production, restricting business trips and suspending visa services. Almost all countries have adopted entry restrictions. This is a never dark time for Chinese foreign trade enterprises.

Foreign trade export orders are grim, and production is slowing.

Recently, the overseas epidemic is grim, and the textile and garment industry has been affected. According to the investigation and analysis of the production situation of weaving enterprises in the cotton textile cluster by China Cotton Trade Association, with the stable control of domestic epidemic situation, weaving enterprises start up rate, personnel arrival rate and equipment utilization rate are gradually improved. However, due to the delay of commencement of the epidemic, the enterprises can not deliver the goods normally. Some of the enterprises with sufficient pre orders are in order to rush to make orders and intensify recruitment after resuming work. As of March 27th, the average operating rate of cluster weaving enterprises was around 70%, and the average operating rate of enterprises was around 85%, and the average staff turnover rate was about 70%.

In terms of orders, the export orders of cluster weaving enterprises have been greatly reduced, and some clusters have been suspended or refunded. If there are enterprises exporting to Europe and the United States, their orders will drop by more than 50%, and there will not be any withdrawal of orders from enterprises exported to Africa, Japan and Korea and other European and American markets, but the subsequent orders are stagnant. Although the majority of small and medium enterprises are in the cluster, the proportion of enterprises under the regulation is more than half, and the direct export orders are limited. However, more orders are made by large enterprises, or products are indirect exports.

In the last week of March, some of the cluster weaving enterprises began to limit production, and there was a phenomenon of stopping production in some clusters, and the utilization rate of equipment decreased. As of March 27th, the utilization rate of weaving equipment in the clustered enterprises was about 55%, compared with last week.

In terms of capital, on the one hand, on the one hand, the enterprises' pre delivery orders have been delivered successively, and the capital turnover has improved slightly. At present, due to frequent phenomena such as breach of contract and withdrawal of documents, the inventory of enterprises is directly overloaded; some enterprises export goods stacked at ports unable to leave port; generally speaking, the amount of capital is increased and the capital turnover pressure is greater; on the other hand, the recent price of raw materials has declined rapidly, making the acquisition of coal a year ago. Enterprises that purchase raw materials suffer great losses.

In terms of employment, the shortage of labor in early stage enterprises is difficult to meet the production demand, and through a large number of recruitment staff, staff turnover rate has been continuously raised, the order has been reduced rapidly, the enterprises are facing intermittent production, and the cost of labor has brought greater pressure.

In response, the foreign trade situation will have a greater impact on the later stage of construction. Some enterprises will ease the impact by reducing costs, improving order quality and delivery time, partly transferring domestic sales or opening up new markets, and strive to maintain continuous production. Because of the uncertain factors affecting the market, the industry suggests that enterprises should do their best in order to strictly control risks while maintaining an orderly return to work.

Today's foreign trade situation is so grim. How will the industry turn the tide in the future?

According to the Ministry of commerce data, in 1-2 months, China's total foreign trade import and export volume was 4 trillion and 120 billion yuan, down 9.6% from the same period last year. Among them, exports of 2 trillion and 40 billion yuan, showing a decline of two digits. The spread of overseas epidemic has led many countries to take strict measures to prevent and control, which has also caused tremendous pressure on domestic foreign trade enterprises.

Up to now, Shandong, Anhui, Liaoning and other provinces and foreign trade enterprises reemployment rate exceeds 80%. Faced with the intensification of the global epidemic, many enterprises have been caught in a dilemma: production may be rejected, and the cost of not producing workers still needs to be paid. In order to "save themselves", many foreign trade enterprises export to domestic market, but also try to broadcast "bring goods" to fight online.

Short term trade to domestic trade feasible

In the short term, foreign trade can also be transferred to domestic trade. According to a recent data released by the Ministry of industry and commerce, in November 2019, there were 13760 Enterprises above Designated Size in the garment industry, with a total operating income of 10777 billion yuan. Such data is enough to show that there is a great market for domestic trade. In addition, with the stalemate of trade frictions between China and the United States, the market situation in recent years reflects that domestic trade is better than foreign trade, so there is indeed greater potential in the domestic market.

Foreign trade enterprises have certain advantages in products turning to domestic trade. Most of the fashion trends in China come from abroad. Foreign clothing companies tend to be more fashionable and more responsive to the trend. Compared with the domestic trade enterprises, the products have certain competitive advantages. Many new generation consumers have shifted from the single consumption of food and clothing to the personalized demand of fashion and culture, and this demand is far faster than before. Therefore, foreign trade enterprises will be able to open up a new world of refurbishment.

But in the long run, the transfer of foreign trade to domestic trade is only a temporary expediency. First of all, the epidemic is temporary. Although we can not predict when it will end, it will disappear. By the end of the epidemic, the textile industry will also be warmer. The textile industry in many foreign countries is in the ascendant, and the global textile market will have a good chance to export.

Online marketing or a new way out

Due to the impact of the epidemic, the entire textile industry chain around the world is facing many challenges from production, procurement to sales, and online marketing and promotion become a new mode sought by traditional textile enterprises. Recently, Keqiao's "Mao Mao home textile" successfully held a live broadcast conference. This is also the first time that the global textile network and the online Textile City have successfully helped enterprises to organize "cloud publishing".

Zhao Junhui, director of "Zhong Mao home textile", told reporters that the 200 new products released this year are all newly developed products this year. In just 2.5 hours of live broadcast time, they have reached over 1.4 million viewing traffic and won many orders. Enterprises will continue to do a good job in B2B mode, and help develop brand development in the form of live goods.

It is reported that "cloud publishing" using new Internet technology and data operation services, help textile enterprises transformation and upgrading, through online publishing, online interaction, online product display and other diversified forms of expression, to further promote the textile industry "Internet + services", "Internet + operation" development.


When is the turning point for the global epidemic? It is not yet known. Many people in the industry believe that the epidemic is short-lived and the industry is developing for a long time. They suggested that foreign trade enterprises could slow down their pace and rejuvenate themselves in the short term of the impact of the outbreak. Consumption demand suppressed by the epidemic will usher in explosive growth after the outbreak. For this reason, enterprises need to store enough ammunition to fight hard in the second half of the year.

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