Keqiao 64.8% Textile Enterprises Have Been Cancelled Orders, And Foreign Trade Export Orders Need To Be Cautious Recently.

With the intensification of the new crown overseas and the collapse of the multinational economy, the textile and garment industry has basically stagnated in the European and American countries, resulting in a serious impact on the domestic textile foreign trade industry. The textile industry also ushered in the most history of withdrawal and abandonment.

Keqiao 78.4% textile enterprises reduce orders

Shaoxing Keqiao, China Light Textile City opened for half a month, and more than 80% of the operators opened the door to greet guests. Before the epidemic, there were 100 thousand people in and out of the country every day, only ten thousand now. According to a local industry survey report, 78.4% of textile enterprises indicated that orders were decreasing, and 64.8% of enterprises reflected that the existing orders were cancelled by customers.

"Nearly 50% of our business is in Europe. If the epidemic continues to spread in these countries, it will be pointless for us to start. Now we are considering whether to adjust the proportion and focus on the domestic market. " A Textile City owner said.

On the same day, from the China Development Research Foundation's "international economic situation outlook" video conference, information came out: at present, the Yangtze River Delta and the Pearl River Delta have only about 30% of the work done, even though the recovery rate is above 90%, because there is a lack of orders.

In fact, the loss of orders began when tariffs were imposed in May and June last year. A textile company has an American major customer. The order amount in 2018 was US $1 million, and less than 500 thousand in 2019. Because Sino US trade has imposed tariffs, while Southeast Asian countries such as Vietnam, Bangladesh and Kampuchea are all zero tariffs, and customers have transferred their orders to Vietnam. Vietnam's textile exports steadily increased in 2019, and it is also the brightest East Asian country in recent years.

In February, because of worries about the epidemic situation and limited traffic, the purchasing managers and designers of some famous brands of clothing industry could not travel to China. Many brands had begun to discuss the transfer of new season merchandise to Turkey. Hadi Karasu, head of Turkey Garment Manufacturers Association (Hadi) Karasu estimates that about 1% of China's total orders will be transferred to Turkey, and the new orders that have been transferred will enable Turkey's sewing machines to fully run up to 85% of their capacity. If Turkey can not complete the technological upgrading of digital transformation and increase production capacity, its textile industry will not be able to accept more orders.

In the first half of March, a large number of clothing stores in Europe and the United States ceased to be open to the outside world. Almost all clothing companies, clothing department stores and clothing electric business companies' share prices were cut short, and a large number of companies' shares fell below net assets. The impact of global epidemic prevention and control on the total market demand has come into being. The textile industry is only a barometer of high sensitivity.

China's foreign trade enterprises, which have just come out of the first wave of pressure to resume production and return to work, will face up to the second pressure: due to delayed consumption, orders shelved or cancelled due to foreign epidemic control, they will have to press the pause button just when they start work. Factory rent and tax paid, wages paid, part of the workers may be laid off... Nearly fifty million of China's foreign trade practitioners are under collective pressure. In 2019, the contribution of China's foreign trade enterprises to GDP was 10%.

In the January and February, China played the first half of the game and the world played the half court in March and April, and became embarrassed under the butterfly effect. In the field of economy and trade, the global supply chain has been cut off because of the epidemic situation.

Caution is needed for export orders in the near future.

The cloth was on board, but it was cancelled.

An industry and trade integration enterprise that makes the special wide household textile fabric said: "the order concentration has been cancelled recently, because the single volume is very large, our recent general orders come from this customer, this causes our fund pressure to be very big."

A fast fashion brand designated supplier also reluctantly said: "recently, there are so many brands and stores that our orders can not be spared. Just a few days ago, new orders have just been received, and cloth is quickly finished, but these days it has been cancelled again."

"At present, the domestic factories have basically resumed production, and the orders for years ago have been working overtime for more than two months, and they are busy shipping. Suddenly the news that the customer cancelled the order is not a big loss, because the company usually only receives 30% of the deposit from the customer, and the cost is out of reach. " A foreign trader said.

"The demand for textile and garment market is decreasing all the time. It is not just a matter of the United States. Overcapacity and order reduction may be more serious than last year." The trader had a worried look.

In addition to the cancellation of orders, many enterprises also disclosed that as the United States and Europe, many enterprises began to enter the state of remote office and semi shutdown, which had a great impact on the operation of logistics. Now we have to confirm with our customers whether we can accept the goods or not, so that we can greet them in advance and avoid two empty goods. Before the goods arrived in Italy, they were abandoned at the port, and the goods were also withheld by the shipping company. A foreign trade enterprise said.

Zhejiang, a European market leader and chief export operator of men's jackets, said that Europe is becoming a new center of the epidemic. The closure of multinational routes led to poor logistics and serious disruption of exports. At the same time, the epidemic situation in European countries is continuing to spread, residents' lives are affected, local clothing consumption market demand is sluggish, orders decline significantly.

Under the double attack of Sino US trade friction and the new crown pneumonia epidemic, a carpet exporting enterprise from Shandong felt a lot of pressure. The head of the company said that the United States is suffering from more serious epidemics. The exhibition is postponed and the tourism industry is stagnant. The demand for carpet products for local hotels and conference centers is greatly reduced. The newly built hotels may be postponed or shut down, and the original meeting rooms will not be replaced with carpets. The field share is compressed again.

At the same time, although export textile enterprises have a higher rate of return, most enterprises still face many difficulties, such as shortage of workers, lack of synchronization in the upstream and downstream industries, lack of protection resources and so on.

At present, there is great uncertainty in the development trend of the global epidemic. The smooth operation of the market is bound to go through a long recovery period. Therefore, export textile enterprises' confidence is frustrated.