The time has come to April, but the orders in the textile market are not as hot as expected. This is partly due to the overdraft of the market, but what has caused a greater impact is the overseas epidemic.
At the press conference of the Joint Prevention and Control Mechanism of the State Council held on the afternoon of April 11, Wu Zunyou, chief epidemiologist of the Chinese Center for Disease Control and Prevention, emphasized that the global new crown epidemic is still at the stage of a pandemic. In the high-level epidemic stage, the number of daily reported cases remains at a high level of 300,000 to 500,000.
In terms of measures, many countries such as France, Austria, and Sweden have once again “banned” Estonia, Hungary, etc. The country also stated that it will extend the current strict epidemic prevention and control measures.
The epidemic is not under control
Overseas orders canceled
For textile people, the impact of the epidemic is no longer unfamiliar. Various order cancellations have made textile people miserable in 2020, which not only increased the inventory of textile people, but also occupied precious cash flow.
Recently, due to the stricter epidemic prevention measures in European and American countries, orders have been canceled again. A weaving company mainly engaged in imitation silk said that it had previously received an order of 500,000 meters from H&M. The fabric order and raw materials had been purchased, but suddenly the order was cancelled, and more than 2 million yuan of raw materials were piled in the warehouse.
There is more news online that after H&M was boycotted by domestic consumers because of its remarks about Xinjiang cotton, the company canceled a domestic order of 7,000 tons of knitted fabrics worth more than 200 million yuan.
Not only orders in Europe and the United States may be cancelled, but orders in Southeast Asia are sometimes not spared.
A clothing company in Guangzhou recently encountered such a bad thing. An Indonesian customer who had cooperated with the company for five years placed a clothing order in early March. The order was only a few thousand pieces. . Soon the goods were completed and the delivery date arrived. However, just when the manufacturer was preparing to ship the goods, the customer suddenly canceled the order. Because he was an old customer and did not ask for a deposit, the last few thousand pieces of clothing were lying in the warehouse.
For this reason, textile people are eagerly hoping that the epidemic will be controlled. However, although the epidemic is under control In the future, overseas market demand will see a fundamental rebound, but for domestic textile workers, it will not be “all benefits without any harm”.
The epidemic will be controlled
Orders flow to Southeast Asia
In September last year, a piece of news that Indian textile orders were difficult to deliver on time due to the impact of the COVID-19 epidemic, and a large number of orders returned to China, occupied a hot social topic for a while. It is true that after October, the order volume in the market rebounded on a large scale, but this situation is not sustainable.
In any case, the advantage of cheaper labor in Southeast Asian countries than in China is objective. For some low-demand but labor-intensive orders, it is difficult for China to compete with Southeast Asian countries. , the data on textile exports from Southeast Asian countries also confirms this.
Vietnam: Vietnam’s exports of finished textile products in the first quarter of 2021 reached US$7.18 billion, an increase of 1.1% compared with the same period in 2020; exports of fiber and textile yarn increased by 31%; canvas and industrial fabrics Exports grew by 8.8%.
Pakistan: In the first seven months of this fiscal year (July 2020 to January 2021), Pakistan’s textile and clothing exports increased by more than 8% year-on-year to US$8.76 billion. Among them, export volume in January 2021 increased by 10.79% year-on-year to US$1.32 billion.
Bangladesh: Bangladesh’s garment exports in January 2021 were US$2.862 billion, a year-on-year decrease of 5.83%, and the year-on-year decline was 3.86% lower than the previous month.
Of course, there is another voice in the market. When the number of clothing orders in Southeast Asia increases, because the local area cannot produce qualified fabrics, domestic fabric orders increase instead. This is a matter of opinion.
It is foreseeable that in the future, as the overseas new crown epidemic control becomes better and better, orders The risk of cancellation will be significantly reduced, but on the other hand, competition from Southeast Asian countries will become more intense.
In this regard, some textile companies have chosen to shift their focus to domestic trade, while others have chosen to improve their technological levels and make themselves irreplaceable. In any case, textile people must be aware of future possibilities. Be prepared for what happens. </p
