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Under The Impact Of The Epidemic Situation, Who Can Ride The Storm And Who Is Cutting Through The Thorns? How Do These Textile Enterprises Do

2020/7/9 10:48:00 2

Foreign Trade Textile Enterprises

As a textile worker for a lifetime, he never expected that he would experience the double impact of the once-in-a-century epidemic and the global economic recession. As we all know, China's textile industry has always been the leader in the export of textiles, and is the main force to obtain foreign exchange. This year is the end of the 13th five year plan. I wanted to make up for the loss of production stoppage as soon as possible after the epidemic situation in China has been basically controlled. However, the epidemic situation in Europe and the United States is out of control, and the economy has begun to stop. It can be said that the domestic textile industry is the biggest hit by the overseas epidemic. For a time, a large number of European and American foreign trade orders were cancelled, and the textile foreign trade industry appeared a rare cold winter. Many enterprises shut down due to the interruption of orders, the market turbulence, price reduction is becoming the daily "distress" of manufacturers. On the Internet, the words "stop work and have a holiday" are constantly emerging. Our colleagues are looking for a new way to get out of the dark and become the industry's top priority.

The pressure is beyond imagination

The impact of the epidemic on the economy, to be honest, most people are not prepared for it. It was originally thought that some well-known textile enterprises with large volume in the industry have strong strength and diversified operation, but they are only temporary difficulties. Once overcome, they will pass. Now it seems that there is no end in sight. The enterprises in operation can not afford to wait or lose. At present, enterprises should first consider how to survive.


The author learned that there is a textile machinery enterprise boss in Jiangsu recently visited several well-known textile enterprises in Shandong, Jiangsu, Hebei Shijiazhuang and other places. The managers of these textile enterprises are quite different from each other before and after the new year. They were full of confidence, full of laughter and full of energy, but now their faces are full of melancholy and their mood is depressed and they are not willing to accept customers. The chairman of Shenzhou was worried that the number of workers returning to work was not complete, which would affect the breach of the order, and could not close his eyes for several days. At present, China has the most complete clothing industry chain in the world, 60% of the world's clothing products are produced in China, and the output value accounts for about China's foreign trade surplus 70% The most closely integrated with this industrial chain is the OEM of international brands. The owners of these factories are extremely anxious these days. The boss of a foreign trade enterprise in Keqiao, Shaoxing, said that the impact of the overseas epidemic is fatal. The orders of European factories are reduced and the inventory is overstocked. Half of the payment for goods may not be recovered. Many factories don't have cash flow for three months. Due to the aggravation of the epidemic situation, the European and American markets are in a serious depression and it is difficult to recover in a short time. In order to survive, many brands are eager to ship, and the boss takes the lead in selling products at a price lower than the cost in the circle of friends.


The epidemic disrupted normal operation

A 120000 spindle cotton spinning factory in Jiujiang, Jiangxi Province, is a manufacturer of foreign trade characteristic products. Even though the cotton textile industry is in a low ebb and the Sino US trade war, it has not been greatly affected. Its products are exported to Europe and the United States, and some of them go to Africa. The profit per ton of yarn is 1000 yuan higher than that of its peers. It has not lost money in more than ten years. Due to the impact of the epidemic, orders from the United States and Japan are basically gone. In particular, due to the domestic logistics blocked, cotton procurement suffered a big loss, only in the first quarter of this year a serious loss.


At present, production has returned to normal. However, after the gradual recovery of production capacity, there were two shocks: one was that cotton futures were impacted by three fusions of US stocks, and the price of cotton futures rose from 14300 yuan a year ago / Tons fell to nine thousand nine hundred and thirty element / T, spot fell nearly three thousand element / Tons, year ago in stock one thousand and five hundred Average price of multi ton fourteen thousand one hundred and fifty element / In addition, due to the epidemic situation in Xinjiang, more than 1000 tons of cotton could not be pulled back, resulting in an average loss per ton of yarn three thousand The second shock is that the delivery of goods does not go to destroy the order or the external order breaks the contract, cancels and logistics interception, only sporadic small orders, and the collection time is prolonged three More than times.


Talking about the experience of cotton purchasing, the general manager of the company felt that the payment for cotton in Xinjiang had been paid a year ago, but the goods could not be delivered in Xinjiang after the year, so they were not allowed to enter. The cotton transport drivers were quarantined for 14 days and then quarantined when they came back fourteen God. Such a toss, considering all kinds of increased costs (during the period of isolation) and transportation costs to Xinjiang, the driver can hardly bear it. One month's delay is like one person in charge of the epidemic situation.


At present, it is difficult for the customer to take a half of the order in the first half of the year, but it is difficult to take a holiday for the next half of the year ~  If the global epidemic situation is under control in January, it will be difficult to continue. The most worrying issue is the extent to which the U.S. epidemic has developed. If the U.S. economy is as predicted by some economists, the intensity of the economic recession is much greater than that 2008  In the financial crisis of, cotton textile enterprises may have at least this time 1/3  Enterprises cannot survive.


Current situation of textile enterprises

Many textile enterprises, such as cotton mills, do not directly do foreign trade, but rely on well-known group textile enterprises facing the international market to do OEM processing. For example, leading enterprises such as Wuxi Yimian, Lutai, Huamao, sunshine, Ruyi, Ningbo Shenzhou, Huafu, Bailong, deyongjia, Yida, bosden, Yager, Hailan, Shanshan, Senma, Dongdu, etc. all have this feature. Recently, according to the prediction of WTO, the economic recession and unemployment may be more serious than the global financial crisis 12 years ago, and trade is expected to decline seriously.


The epidemic is disrupting the pace of global production, life and market. Consumption shrank sharply, overcapacity intensified, the market and factories were cold and quiet, and the news of suspending, slowing down and cancelling orders continued to be heard. The author interviewed a few cotton mills, also confirmed that the actual situation is really grim.


A cotton textile factory in Jianhu, Jiangsu Province, resumed work after the year, and there was still the last batch of 500 tons OEM processing orders provided by Sanyang. However, I did not know what to do next. As the equipment could only be used for conventional cotton varieties, the cotton price fluctuated violently, and the yarn price fell endlessly, facing the risk of loss. Due to the low market price of yarn, the original rotor spinning equipment is basically unable to produce. In the surrounding area of Jianhu, all the rotor spinning manufacturers have stopped, and there are laid-off maintenance workers and operators looking for jobs in the market. In the past, acrylic core spun yarn and differential yarn are not available.


In addition to the problem that the company can't return the funds to a certain factory in Jiangxi Province, the company can't return the money to the neighboring factories, but there is no way for the staff to go back to Jiangxi Province The ten thousand spindle mill basically had a temporary holiday (half a month to one month), and the situation was observed and decided again. The overstocking of stocks was approaching the limit, and the production was limited 50% , the customer broke the order, and now they don't even have a chance to talk about it. Suppliers dare not do it, they dare not pay on credit. Factories dare not do it. They have no cash to buy raw materials.


How to survive the impact of the epidemic

Risk and opportunity coexist, the epidemic situation internal control and input rebound. Although the domestic economy has been good for a long time, the risks in the world economy are expected to decline in the medium term. It will take time for the market to recover. Investment projects need to pay attention to the isolation policy, control the time required for the spread of the epidemic and the final economic cost. It is necessary to carefully and actively adjust the response, preserve the strength, and fight against possible long-term uncertain risks The company's partners and the company's partners are well prepared for the development of the company.


·Model of small and medium sized cotton textile enterprises

The impact of the epidemic on all textile enterprises is the same, but the final results may be quite different. Well, after the epidemic, the tycoons drove in early March, 90%  It's time to go 10  It's all open. After the year, the company ordered a lot of orders. At the end of April, many customers came to ask for help. The orders were from Vietnam, South Korea, Japan and a small amount in Europe. Due to the trade war between China and the United States, the United States did not consider dealing directly with the United States, but also made some indirect goods to the United States.

Their success: first, they focus on the selection of four domestic key high-quality enterprises -- Lutai, deyongjia, Shenzhou and Changzhou xurong knitting, and carry out key quality research according to the technical requirements of customers 50S  ~  80S  The main products are high-end products, accounting for 70% of the total production; second, the production of differentiated conventional varieties, due to the increase in the average number of labor, more people arrange production 30S  ~  32S The products with coarse products but high added value and high-quality old customers have the best performance price ratio. At the same time, the production capacity and customer demand are balanced, and the total production volume accounts for 30%. The third is to adhere to the management idea of differentiation and high added value, open up the high-end industrial chain, and connect the customized and top-grade yarn with the customer's use.

Of course, if the epidemic situation is not effectively controlled in June, the rich will not face the pressure of being single. Fortunately, at present, all the funds are self raised, and there is no bank interest at all. The money earned every year is used for targeted transformation 2011  The spinning frame has been reformed since Ten thousand spindles Siro compact spinning, Ten thousand spindles siro spinning and some core spun yarn units. 2019  In 2001, we will speed up the transformation of three major projects, namely, spinning single spindle detection, short car clustering and compact spinning. Through the transformation, the tube yarn forming will be generally improved, and at the same time, the self winding production efficiency will be improved at least 2%  about.


·Pay attention to risks in the production of medical and epidemic prevention products

In the face of the sudden "refund tide", many garment fabric foreign trade enterprises actively self-help, switch to the production of masks and other anti epidemic materials. As early as At the beginning of this month, China export credit insurance company issued a risk warning of mask supply and demand, which must be implemented 95%  Medical melt blown non-woven fabric material is used as mask for filtration and effective prevention of virus. The output of non-woven fabrics in Xiantao City of Hubei Province accounts for the total output of China 60% month In order to control the quality of medical masks and prevent fake and inferior products from entering the market, Xiantao City shut down all local manufacturers of civil masks. From the Ministry of Commerce of China month China's export of anti epidemic materials has been tightened since April. Only EU and US certification can't be exported without China's registration! The European and American standards of medical products are the high technical threshold in the world at present, so long as they are proved, they will be released. No, CE  The argument can not enter the European Union, without the United States FDA Certification cannot enter the United States, N95  The mask must reach NOISH-N95  Standards and certification can be used in the United States. “ CE ”“ FDA ”Certification may lead to the failure of customs clearance at the port of destination, resulting in huge costs such as fines and logistics, transportation and warehousing.


·Online live broadcast to expand domestic demand channels

The epidemic situation has changed the consumption habits and consumption demands, and the epidemic has changed the original living habits of different generations. Affected by the epidemic situation, people are less likely to go shopping at home, and more and more consumption behaviors are solved through the Internet. For the textile industry, the embodiment of a strong domestic market needs good channels, and online live broadcasting has become an important choice worth trying. March thirty-one The conference was held in Shandong Province. three month fourteen Dongguan, Japan two thousand Many wool weaving enterprises took the lead in opening a live exhibition hall with the help of e-commerce platform, which attracted a considerable number of consumers. The multi-dimensional display, strong interaction and authenticity of the live broadcast can effectively alleviate. The live broadcast is not only to sell goods, but also to realize the amplification of high-quality shopping guide sales ability, multi-channel communication, and efficient management of members, so as to enhance the fine operation ability of the brand. In the face of the difficult situation, all clothing enterprises are actively seeking countermeasures. Most business owners have said that the primary goal is to survive first and wait for consumption recovery after the end of the epidemic.


·Do a good job in foreign trade layout prediction in advance

In order to reduce the export risk, the "eggs" should be put in several baskets ahead of time to enhance innovation. The west is not bright and the East is bright. On the one hand, it adjusts the export direction, and at the same time, it starts to develop innovative products. The export trade to Europe and the United States is temporarily distributed to other countries and regions. Shaoxing Gaogu import and Export Co., Ltd. is persistent in innovation and R & D, so that "Gaogu" products and overseas brand clothing manufacturers are in perfect harmony. The company has just developed a new one 3D Lace fabric, especially favored by foreign customers, to inquire, to sample countless, there are many interested customers, can be mass production immediately.


Get through the tough times with a positive attitude

·Macro policies include loose economy and monetary measures

Not long ago, G20 countries held a video conference and announced that they would start the value five The trillion dollar plan to boost the economy in response to the negative impact of the epidemic on global society, economy and finance has, to a certain extent, boosted market sentiment. Interest rate reduction and quantitative easing at the level of monetary policy have become the core of the current multinational economic response measures. The central banks of South Africa and Malaysia are no exception three month nineteen Japan announced interest rate cuts one after another. four month three The Central Bank of Japan's targeted reduction of reserve requirements four thousand The liquidity of RMB 100 million and the reduction of Excess Reserve interest rate to rescue the market is also the third time in the year that the RRR has been reduced and the total investment has been increased one point seven five trillions. four The second ten days of the second half of the year five thousand New on the basis of 100 million yuan one In order to support the development of the real economy, promote the increase of support for small and medium-sized enterprises and reduce financing costs. Hou Bangan, deputy director of Guangzhou Taxation Bureau of the State Administration of Taxation, said, "after the policy was issued, the forty Foreign trade enterprises apply for tax refund, and the amount of tax refund reaches one point four seven 100 million yuan ".

The Ministry of Finance and the Ministry of transport have issued policies since March one From 0:00 to six month thirty day twenty-four The port construction fee for import and export goods will be exempted. The Ministry of Commerce, together with China Export Credit Insurance Corporation, underwrites the loss of Importers' commercial and political risks in the process of export business.


·Simultaneous development of domestic and foreign markets, waiting for international market recovery

From the perspective of stable operation of textile enterprises, upgrading of industrial structure and balanced economic development, due to the aggravation of epidemic situation in textile export areas and the increase of "breakpoints" in the international industrial chain, it is necessary to improve the layout of Southeast Asian textile industry chain, open up domestic industry chain and supply chain, and improve global rapid response and response capacity. When it is necessary to expand the domestic and foreign trade market, it is necessary to develop more channels for domestic and international consumption.


·Strengthen confidence and overcome difficulties

In view of the labor, logistics, market and other factors that restrict the current textile production, it is necessary to think from multiple dimensions, make full use of various sales channels and diversified consumption fields, tap the potential of internal and external markets, and orderly improve the utilization rate of production capacity.

Textile enterprises must establish confidence, believe in the central government and the government, firmly win the battle of epidemic prevention and return to work and production. It can be predicted that the market will not improve in the first half of this year, so they should be prepared for a long-term battle.

The outbreak of new crown pneumonia is a disaster for mankind, but it is also an opportunity for the transformation and upgrading of the global industrial chain. China should seize the opportunity of some industries in Europe and the United States and economic recession to speed up "attracting capital to supplement the chain" and ensure the healthy development of industrial chain clusters. When the foreign market recovers, it is necessary to further strengthen international cooperation, expand the scale and development quality of industrial clusters, and drive the great cycle of global industrial chain.

The long-term basis for China's macroeconomic development will not change. We should put more emphasis on the policy of stabilizing the growth of small and medium-sized enterprises and putting more emphasis on the prevention of domestic risks. In view of the impact of the epidemic situation, the state has begun to introduce a variety of support policies to help enterprises gradually ease the operating pressure.

CFA has put forward policy suggestions to relevant government departments to ease the pressure of enterprise capital turnover as soon as possible, further reduce the burden of enterprises, and continue to ensure the resumption of work and production. It also suggests to study and deploy policy plans in advance to start domestic consumption and stabilize the competitiveness of export products after the epidemic. As long as colleagues work together, rely on all staff, overcome all difficulties, we will certainly usher in a new future.


Suzhou Textile Engineering Society   Miao Dingshu


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