Our textile industry is highly dependent on exports. From January to November this year, our cumulative export volume of textiles was US$141.651 billion, a year-on-year increase of 29.64%, and our cumulative export volume of clothing was US$1,235.67 billion, a year-on-year decrease of 10.21%. Among them, the growth rate of textile exports in November rebounded from the previous month, with exports amounting to US$12.040 billion, a year-on-year increase of 20.96%; clothing exports continued to maintain positive growth, with exports amounting to US$12.550 billion, a year-on-year increase of 3.60%.
Due to this year’s epidemic, the export volume of textiles has not decreased but has increased. This is mainly because countries with overseas outbreaks have strong demand for epidemic prevention supplies, which has driven our export of epidemic prevention fabrics. However, in the textile market, the number of companies involved in epidemic prevention fabrics is generally limited. Most of them are ordinary clothing fabrics, and the number of companies that can profit from this wave is also small. Especially when clothing exports fell by 10.21% year-on-year from January to November, fortunately, clothing exports in November increased by 3.6% year-on-year. It seems that the textile and clothing market has come out of the most difficult period.
However, the recent out-of-control epidemic situation in Europe and the United States has once again cast a shadow on the export of textile and apparel fabrics. According to reports, the number of new confirmed cases in the United States exceeded 400,000 in one day on December 18. At other times, the daily number of new cases has basically remained around 200,000. The epidemic in the UK is even more exaggerated. British Health Secretary Hancock said that the new strain of the new coronavirus discovered in the country has gone out of control. The mutated new virus is 70% more transmissible than the original strain. London, UK, has begun to stage a mass exodus. .
The epidemic prevention situation is grim, and “Christmas” and “New Year’s Day” may be silent
Serious The epidemic prevention situation has also led many countries to begin to upgrade their epidemic prevention levels and implement more stringent prevention and control measures.
According to reports, starting from the 20th, London, southeastern England, and the east of England have been raised from the third-level prevention and control level to the fourth level. In areas entering the fourth level of lockdown, department stores and indoor fitness venues are prohibited from operating, and people are prohibited from entering and exiting the area. This level of epidemic prevention will last for 2 weeks. At least 18 countries, including Germany, the Netherlands, Belgium, Ireland, and Italy, have suspended travel to and from the UK, putting everyone in Europe at risk. Austria has implemented a comprehensive third “city lockdown” from December 26 to January 17 next year.
City closures in many countries and regions happened to coincide with Christmas and New Year’s Eve. In previous years, this period was a great time for holiday shopping in European and American countries, but this year most people may have to spend it at home, especially since the entire blockade in the UK involves more than 16 million people, equivalent to four quarters of the total population of the UK. one part.
It is very likely that going out for shopping and consumption will become a luxury for people in all blocked areas. Some countries and regions that have not yet blocked will inevitably increase epidemic prevention measures and restrict people’s travel and gatherings when the epidemic worsens again. This year’s Christmas has been ruined for people in Europe and America. In recent months, the clothing and gifts prepared by the textile industry for Christmas have found it difficult to achieve good sales when stores are closed and the flow of people is reduced. The current situation is very similar to the global situation at the beginning of this year.
Backlog of inventory and mutated viruses may affect the market next year
How to solve it The inventory of good textile and clothing has been plaguing textile and clothing companies. Low-price discount promotions will not only damage profits but may also affect brand value; directly burning them will cause huge losses and is not conducive to environmental protection. It is more in the interests of textile and apparel companies to only keep it for sale next quarter, and most companies are doing this this year. If the sales of spring clothes are hindered at the beginning of the year, then we will change the styles and sell them in the autumn. If we can’t sell out all the clothes in the autumn, we will continue to sell them next spring.
This year’s Christmas season in Europe and the United States will inevitably lead to slow sales in the clothing market due to the renewed outbreak of the epidemic and restrictions on people’s travel. This part of inventory clothing will undoubtedly appear in the autumn and winter market next year, which will definitely lead to a reduction in fabric orders for next autumn and winter orders to a certain extent.
On the other hand, the current textile market is generally optimistic about the market in the second half of next year. This view is mainly based on the gradual investment of vaccines. But will the emergence of a new strain in the UK cause the current vaccine to be ineffective? Of course, there is currently no definite evidence that the new strain may affect vaccines and treatments, but the possibility of an impact still exists.
Next yearIn the first half of the year, due to the backlog of clothing inventory in this spring and summer, it is basically not optimistic, and there is a high probability that there will be no improvement in orders. Once the market loses its optimism about the second half of next year, the lack of orders will last throughout 2021. The vast majority of textile companies are already struggling to support themselves this year. If the market does not improve next year, many textile companies may go bankrupt and leave.
Before the global epidemic is brought under control, there are still great uncertainties in the textile market. Especially the recent worsening and out-of-control epidemic situation in Europe and the United States has made the textile market next year even more confusing. </p
