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The clothing foreign trade industry waits for spring

  • Categories:Industry news
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  • Time of issue:2020-03-22
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(Summary description)Order delays before the Spring Festival affect the entire industry chain. After the Spring Festival, overseas markets are facing uncertainty. Under the epidemic, the clothing foreign trade industry is being affected in stages.

The clothing foreign trade industry waits for spring

(Summary description)Order delays before the Spring Festival affect the entire industry chain. After the Spring Festival, overseas markets are facing uncertainty. Under the epidemic, the clothing foreign trade industry is being affected in stages.

  • Categories:Industry news
  • Author:
  • Origin:
  • Time of issue:2020-03-22
  • Views:0


Order delays before the Spring Festival affect the entire industry chain. After the Spring Festival, overseas markets are facing uncertainty. Under the epidemic, the clothing foreign trade industry is being affected in stages.

"Almost 80% of our orders in the first quarter could not be delivered on time, and the amount was almost 100 million yuan." As the relevant person in charge of a clothing company in Shishi City, Fujian Province, Cui Yongqiang (pseudonym) clearly felt the new crown pneumonia The severe impact of the epidemic.

Cui Yongqiang's situation is not an isolated case in the clothing foreign trade industry, and has been transmitted to the upstream and downstream of the clothing export industry chain. "China Business Daily" reporter learned that dyeing factories, fabrics, garment production, export trade, cross-border e-commerce, and related foreign exhibitions are all affected by the epidemic to varying degrees. Delays, refunds, and even claims for overseas orders frequently occur.

Self-help is carried out simultaneously. The All-China Federation of Industry and Commerce, the China Council for the Promotion of International Trade, and China Import and Export Credit Insurance Co., Ltd. have all introduced relevant policies to reduce the losses of the enterprises involved. At the same time, local governments and related associations in many places provide support in recruitment policies, resumption assistance, and financing loans.

"Loss is inevitable. All we can do at present is to stop the loss as much as possible and wait and see the situation of overseas orders." Many practitioners expressed similar views to reporters.

Order delays, the industry is affected by stages

Years ago, Zhang Qinglin (pseudonym) received a foreign spring clothing order from a finished product trader, and he was responsible for providing fabrics. If he follows the normal process, he needs to complete the fabric at the end of February and send it to the factory provided by the finished product trader. After about half a month, he will make a garment and then ship it to the United States by sea.

However, the epidemic disrupted the entire plan. "We have just started construction now, and there has been a delay of more than a month. Moreover, the supporting dyeing factory has not fully resumed, and the fabric production progress has not been able to keep up. If we produce at the current pace, this batch of spring shipments will be shipped to the United States long ago. It's past season." Zhang Qinglin said.

He is located in Shengze Town, Suzhou City, Jiangsu Province, which is one of the famous textile production bases in my country. According to him, the local production capacity has recovered less than 50%, and it is not possible to increase the work force.

In Shishi City, Fujian Province, more than 1,000 kilometers away from Shengze Town, local clothing manufacturers also encountered shocks. Cui Yongqiang's apparel company has annual sales of 6.7 billion yuan, and all products are exported to Australia and North America. Even though the company's business covers almost the entire industrial chain, its production is still greatly affected.

Cui Yongqiang told reporters: "Our factory started construction on February 10, which was relatively early in the local area, but the attendance rate was low. Only 202 people arrived on the first day, less than 20%. Recently, it has improved a bit. , We have some fabric inventory, but the supporting dyeing factory did not start. Later, until February 20th, the dyeing factory started, but our cloth can not be woven. Because the weaving workshop at the forefront of the industry chain is the core main force And the technicians are all from Hubei or key epidemic areas."

Similar things are happening in Henan and other places. The relevant person in charge of the Henan Bonded Logistics Center told reporters that during the epidemic, there were no foreign trade clothing products among the goods sent overseas through this channel. According to his understanding, the textile and garment foreign trade industrial bases of the four Huanghuai cities (Xinyang, Shangqiu, Zhoukou, and Zhumadian) in Henan Province have all been greatly affected.

Liu Xiangyang, chairman of Yuman Global, a local cross-border e-commerce company, told reporters that the overseas orders received a year ago were originally planned to be shipped within seven days after the Spring Festival, but due to the epidemic, they have been delayed until now.

It is worth noting that while overseas orders were delayed a year ago, many apparel export companies must always pay attention to the epidemic situation in overseas markets and the impact on themselves.

The Ministry of Commerce mentioned in a press conference held on March 5 that the WHO has raised the global risk level of the new crown pneumonia epidemic to "very high", and the epidemic has a trend of spreading globally. Affected by this, the global capital market has fallen for several days, and authoritative institutions such as the International Monetary Fund and the OECD have all lowered their expectations for world economic growth in 2020.

The staff of Shandong Ruyi Group (002193.SZ) Secretary Office told reporters that the company's overseas market is mainly concentrated in Europe. If the foreign epidemic continues to spread, this business will definitely be affected. The company's main business is the design, production, and sales of worsted woolen fabrics and clothing. In the first half of 2019, nearly 40% of the company's business income came from foreign sales.

The research report issued by Everbright Securities shows that the current epidemics in South Korea, Italy, Iran, and Japan are relatively serious. Among them, Italy and Japan are highly related to my country's clothing industry.

Li Xingqian, Director of the Foreign Trade Department of the Ministry of Commerce, said in a question from a reporter from China Business Daily on March 5 that the impact of the epidemic on the trade development of countries including China, Japan and South Korea is mainly reflected in the resumption of work and production, logistics and transportation, and supply. Chain stability, etc. But this effect is staged and temporary. The advantages of China's complete industrial chain are irreplaceable, and its position in the global industrial chain and supply chain will not change.

Domino effect

Despite order delays, more companies are still reluctant to abandon these orders and the customers behind them, and pay higher costs for this.

In the past many years, Cui Yongqiang's company has shipped a batch of goods from Xiamen Port to Australia and the United States each week, directly to their own logistics storage center. But in the first 20 days of February this year, local shipping was almost at a standstill. "On February 20th, the port began to open flights one after another, and the frequency is not much." He said.

For those very urgent orders, Cui Yongqiang chooses sea transport instead of air transport. "We need to pay a much higher price than before, regardless of cost."

Unfortunately, more SMEs do not have much strength to follow this plan. Liu Xiangyang, chairman of Henan Yuman Global Cross-border E-commerce Development Co., Ltd., mentioned to reporters that the company, as a foreign trade service provider, had almost no shipments of overseas orders from years ago. However, due to the problems of delays and payment collection, the company’s connected clothing manufacturers are very tight in liquidity.

When the downstream cost increases, it will be transmitted to the upstream. Zhang Qinglin mentioned to reporters that a garment trader he met was originally to transport fabrics to Jiangxi, where labor costs are lower, for garment production. Now that the epidemic is affected by various aspects, the trader chooses to process garments locally (Ningbo area). However, local labor and other costs are much higher, leading to a lot of increase in overall costs.

However, some customers said they could understand. Wang Shichuan, chairman of Fujian Shilianda Garment Accessories Co., Ltd., told reporters that the company's current production capacity has recovered to 60% to 70%. Orders were affected by the epidemic and delivery was delayed, but there was no claim for compensation for the time being. According to the data, the company's products are exported to Southeast Asia, Europe and the United States, and it is the designated accessory supplier of FILA, Anta, Jordan, Carbene and other well-known clothing brands.

In addition, every February is the highlight of the International Fashion Week, but the epidemic has affected the appearance of domestic brands in the international market.

"The epidemic has caused foreign trade companies to dare not go out or even gradually unable to go out. Foreign trade companies dare not to go out but overseas exhibitions are held normally, causing great losses to companies. As the epidemic spreads overseas, well-known European exhibitions in Germany, Italy and other traditional European exhibitions have been cancelled. , Even there was a sudden cancellation before the show. Many domestic exhibitors have gone abroad, but no show can participate.” said Pan Jianjun, chairman of Miolante (300795.SZ), who focuses on exhibition business.

Overcome difficulties together

there is always a solution to a problem. All sectors of society are making every effort to recover the losses in the garment foreign trade industry.

At 17:30 on March 3, 8 employees from Guizhou took a plane from Guiyang to Quanzhou and returned to Cui Yongqiang's company smoothly. "The Shishi City Trade Union and the Quanzhou City Trade Union have collected statistics on the return of employees to local enterprises, coordinated vehicles and flights for us, and assisted the enterprises in resuming work. The government reimbursed 50% of the cost of air tickets for employees returning to work." Cui Yongqiang said.

According to relevant media reports, Shishi City has also promoted local human resource service agencies to sign labor cooperation agreements with major labor export regions and set up labor cooperation workstations. The workstations will provide 50,000 laborers for companies in Shishi City who bring in more than 100 (including 100) labors each year. RMB one-time labor cooperation reward.

According to Zheng Zhiqiang, deputy secretary-general of Shishi Textile and Garment Industry Alliance, the association has appointed 10 secretaries to link up with towns (sub-districts) in Shishi City to guide enterprises to resume work. The local mayor also used live broadcast to bring goods to help companies withdraw funds.

Cui Yongqiang is very emotional about this: "Governments at all levels have also appointed working groups to guide the prevention and control of the epidemic. Moreover, the government has provided policy support in financing loans, and water and electricity expenses will be reduced or exempted during the epidemic. This reduces the pressure on business operations."

In addition, many other places have formulated resumption policies for foreign trade companies, and focused on monitoring the pace of resumption of foreign trade companies. On March 3, the Henan Provincial Department of Commerce held a press conference stating that the province allocated 200 million yuan in foreign economic and trade development special funds to support the stable production and operation of the “three foreign” companies, including foreign trade enterprises. As of that day, the province’s foreign trade enterprises’ return to work rate was 37.6%.

However, many things cannot be coordinated solely by the power of local governments. Large-scale order delays and adjustments to shipping schedules have caused companies to repeatedly encounter claims for overseas orders. How to stop loss has become a top priority. The information provided to reporters by the staff of the China Council for the Promotion of International Trade shows that on February 14, 21, and 28, the China Council for the Promotion of International Trade held three online meetings to address the response of exhibition companies, foreign trade companies, and "going out" companies under the epidemic prevention and control. Strategies to start a discussion.

As of February 27, the National Trade Promotion System has issued a total of 4,318 evidence of force majeure related to the epidemic for companies, involving a contract value of approximately 330.8 billion yuan. Factual proof of force majeure is a type of commercial proof that can help companies to partly or completely exempt from liability when they cannot strictly perform the contract.

The All-China Federation of Industry and Commerce chose to join forces with China Export & Credit Insurance Co., Ltd. (hereinafter referred to as "China Credit Insurance") to start statistics on epidemic prevention and control information for "going out" companies from February 12, and four issues have been released as of March 3. The latest issue of information analyzes the impact of overseas investment activities and provides many suggestions for overseas investment companies.

A relevant person from China Credit Insurance told reporters that during the epidemic, the company introduced ten measures to support guarantee services, including increasing support for export companies, strengthening support for small and micro enterprises, and providing financial support through a variety of financial tools. Since then, the company has issued relevant opinions to further expand the coverage of short-term export credit insurance, expand short-term export credit insurance policies and the scale of financing for small and medium-sized enterprises, and moderately relax claims conditions and other policy support.

In addition to force assistance, self-rescue measures can also maximize the stop loss. Currently, Miorante, which has postponed the holding of 4 overseas self-organized exhibitions, puts his sights on the line. Pan Jianjun mentioned to reporters that the company supports and guides the development of online exhibition platforms for foreign trade services, supports and guides foreign trade companies to use online exhibition products, regards participating in online foreign trade exhibitions as overseas exhibitions, and actively deploys exhibitions in the second half of the year.

"A dust of the times, falling on a person, is a mountain." On March 5, Zhang Qinglin relayed such a sentence to reporters. He said that he will continue to insist in this industry, "the industry will always get better."


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