The overseas epidemic crisis is still escalating. Judging from the continued extension of the quarantine period in Russia and India, the severe export situation may be difficult to alleviate in the short term.
The textile market in May seems to be differentiated, and both domestic trade and export sales are unpredictable. Domestic textile and foreign trade bosses who have been suffering from a lack of orders in the early stage are looking forward to the overseas market recovering as soon as possible.
In May, European epidemic control measures were gradually relaxed, and many countries began to resume work. It is reported that on the first day of resumption of work in France, long queues formed in front of Zara stores in many cities…Retailers are beginning to show signs of gradual recovery.
In addition, it is reported that with the lifting of restrictions related to the prevention and control of the new crown epidemic, EU countries We have started to contact for clothing orders and it is expected that Myanmar will receive the order in June. It will usher in an excellent prospect for Myanmar’s garment industry, which has been through the epidemic for more than two months, and it is also good news for domestic textile and foreign trade companies.
After all, China is not only an investor in Myanmar’s textile and clothing industry, but also an important source of raw materials and intermediate products. Origin: The improvement of Myanmar’s garment industry is bound to accelerate the purchase of domestic fabrics.
It is reported that many textile bosses have recently stated that foreign inquiry orders have begun to increase. “Recently, our domestic market orders have been increasing, and many of them are sold to Zhongda. However, there have been more and more inquiries about prices for foreign orders recently. Although the orders have not been placed yet, at least they are starting to move.” A textile company specializing in fashion fabrics the boss said.
Coincidentally, the person in charge of another foreign trade company said that orders are gradually recovering. He said: “Since the outbreak of the overseas epidemic, we have had no orders for a full month. Now we are finally starting to get orders, and we are back to normal. It was impossible last year, and it is estimated that sales will drop by at least 50% this year.”
An epidemic in 2020 has caused many textile foreign trade companies to face greater problems. 2017 and 2018 were the years when domestic and foreign textile trade were blooming everywhere. “When there were the most factories, one cabinet could be produced every day, and they were all sent to the Middle East to be made into clothing.” said Mr. Zhang, a cloth boss who produces imitation silk. , “When the market is good, workers are busy every day, and the printing masters often work overtime.”
Later, due to the Sino-US trade dispute, this situation no longer existed in 2019. In the past year, many textile factory owners’ orders to the United States have shrunk by nearly half. However, this is not the worst time. “The most recent order received by the factory is a reprint of the order from a year ago, with a quantity of 30,000 meters. The goods have been shipped recently and there are almost no orders left.” Mr. Chen said.
For textile bosses, the most difficult thing is to complete the execution of orders from a year ago , there is no new order cycle, then the workers’ income will be a big expense.
The monthly cost of a factory with 100 looms and 50 workers is almost 400,000 yuan (including rent, water and electricity, labor, and excluding raw materials). For the boss, the pressure is evident as he still has to bear hundreds of thousands or even more costs without replenishing orders.
“It is much more difficult to do foreign trade this year than domestic trade. The factory has accumulated inventory for a month and a half, and some early orders have been delayed in shipment. Even now, customers have not asked for goods, and the inventory is still low. These are enough to test We have funds!” In addition to inventory and financial pressures that put many foreign trade bosses under great pressure, the news of corporate bankruptcy and closure abroad from time to time also affects their hearts. The latest news shows that the market decline and stagnation will continue:
1. Primark, the affordable retail giant, recently announced that it is looking for space to store a large amount of inventory that is currently unable to be sold. Worth approximately £1.5 billion. Almost all Primark stores are closed, losing about 650 million pounds a month, and no products are sold online.
2. Renown, a large Japanese clothing brand, filed for bankruptcy. This is the first time a Japanese listed company has operated this year. Bankruptcy. Founded in 1902, RENOWN is a comprehensive fashion group with more than a century of history and performance. It owns more than 30 international brands such as Arnold Palmer and Hiroko Koshino.
It was reported on the 3rd and 15th that Germany’s largest department store group Galeria Karstadt Kaufhof suffered losses of more than 500 million euros due to business restrictions during the new coronavirus epidemic and is currently applying for bankruptcy protection.
4. JCPenny, one of the largest department store chains in the United States, announced that it had filed for bankruptcy on the 15th. This is the largest retail company to close due to the impact of the epidemic so far.
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It can be seen that the number of small and medium-sized enterprises that have closed down due to the epidemic has increased sharply, and the impact of the economic contraction has already begun. It has affected large foreign companies, which has given rise to domestic foreign trade that is eager to recover.For enterprises, it is undoubtedly a blow.
In mid-May, in a questionnaire survey on foreign trade orders by China Silk City Network, nearly 80% of the bosses who participated in the survey said that foreign trade orders had not improved. “80% of our previous major customers were from abroad. There have not been many new orders recently. In previous years, at this time, we would focus on proofing orders for next spring and summer. Currently, these orders have not been placed.” Another fabric supplier serving Japanese clothing manufacturers He also said that there have been very few orders recently, and now the core sales staff have started to start side jobs.
In any case, May is already halfway through, and textile people are in the period The hoped-for recovery in the foreign trade market is not obvious. In previous years, June and July were the off-season for the foreign trade market. Many European and American countries have the habit of taking summer vacations, so the sales cycle has been compressed again. No wonder some textile bosses said: Foreign trade improved in the first half of this year. There is a lot of pressure, the key depends on whether we can recover in September!
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