Some experts said: The COVID-19 epidemic sweeping the world is a very typical black swan event. It has had a serious impact on the global economy, society and financial system from both supply and demand ends. The world political and economic landscape has also This will change significantly…
The most common sentence I heard from Boss Bu recently is: It’s a headache when it goes down, and it’s a headache when it goes up!
Last week, the crude oil market experienced a sudden change, and bulls suddenly broke out, driving up the price of bulk polyester raw materials, polyester filament It also ushered in a long-awaited price increase.
For a time, many downstream manufacturers also entered the market to buy goods, and the production and sales of mainstream polyester manufacturers exceeded 100 for consecutive days! After this wave of “craziness”, many weaving companies’ stocks of raw materials on hand increased from the previous week to about half a month. However, recently cloth bosses have begun to calculate how long the funds on hand can last.
In an incomplete survey, 80% of textile company owners said that in the first quarter of this year Compared with the same period in previous years, sales fell by 30%, and even fell by as much as 80%. A small number of textile companies have been experiencing zero transactions since late March.
As the circulation speed of market orders has stagnated, the speed of corporate order payment has slowed down significantly.
We have also been very anxious recently. There was a payment that should have been settled in mid-February, but it was delayed due to the epidemic. Until now, the payment is still with the other party. On account.
The textile market has encountered a “late spring cold”, which has also made many textile bosses realize that funds on hand are beginning to be tight, and the inventory in factories is still high, making it difficult to realize cash in the short term.
Orders are suspended urgently! The payment cycle is more than 3 months. Boss Bu: Return the money! Money back!
This year, people in the textile industry are joking: the first half will be played at home, and the second half will be played abroad. Foreign trade professionals watched the whole scene, and the foreign trade boss was awarded the title of “The Worst Textile Boss”. As brand owners continue to close stores, cancel orders, and postpone deliveries, the lack of orders in the market is fermenting, and the customer payment cycle is also forced to extend.
To make matters worse, some completed orders were called “urgent” before delivery. “Stop”, resulting in further delay in the return of funds.
The owner of a fashion fabric textile company that deals in the European and American markets said: “In the past, we settled monthly with customers, and it took 1-3 months from delivery to receipt of payment. At present, Many payment for goods have not been returned yet. It is normal for domestic payment to be made, but overseas payment has a great impact because foreign customers have stopped working.” Some textile bosses also said that the current payment cycle is about 4 months, which is one month longer than before. about.
For textile bosses, after experiencing a shortage of orders, the biggest pressure is cash flow. The textile industry is a “mixed” industry, ranging from tens of thousands of looms to dozens of looms, they can all find their own suitable space to survive in the market.
Therefore, in times when the market was relatively good, many bosses sought financing from banks to expand production scale. However, as the overseas epidemic intensified, neither domestic demand nor the foreign trade market improved. As a result, it has become very difficult for Boss Bu to achieve quick payment.
Of course, the country will not continue to watch the domestic business environment continue to be bad. Local governments have begun to withdraw more targeted measures to help small and medium-sized enterprises import, resume production and have new development. .
The central bank made a major statement: Never let the market experience a money shortage! The ultimate move is predictable!
On the morning of the 3rd, at the press conference of the Joint Prevention and Control Mechanism of the State Council, Liu Guoqiang, deputy governor of the Central Bank, said that we will never let the market have a money shortage. Of course, we will not need money. to leak out. Reasonably sufficient to meet market demand. Liu Guoqiang said that we will continue to promote LPR reform, guide banks to appropriately transfer profits to the real economy, and promote a significant decline in the comprehensive financing costs of enterprises.
He said that the impact of the epidemic on the world economy will be great, but how big it will be and when it will get better are full of uncertainties. The major impact is mainly reflected in the severe impact on supply chain channels and trade channels, as well as the strengthening of risk aversion and market fluctuations. At present, the impact has not exceeded that of the 2008 financial crisis.
Experts came out to boost market confidence. Since the outbreak of the epidemic, the state has introduced supporting policies to support small and medium-sized enterprises, and first-tier cities have introduced policies to support the resumption of work and development of enterprises.
For example, Suzhou issued a series of policies in March: 1. Ensure that the credit balance of small and micro enterprises does not decline; 2. Ensure that the financing costs of small and micro enterprises are reduced; 3. Give full play to the role of the “national team” of each policy bank; 4. Encourage financial institutions to provide protective financial services; 5. Implement the policy of aiding enterprises and stabilizing employment; 6. Deferred payment of social insurance premiums; 7. Relief and exemption for small and medium-sized enterprises��rent; 8． Reduce and reduce taxes and fees for small and medium-sized enterprises; 9. Deferred payment of taxes; 10. Support small and medium-sized enterprise entrepreneurial parks.
Spring and summer fabrics are available in the first half of the year, and autumn and winter fabrics in the second half of the year may be expected!
We have entered the second quarter in the blink of an eye. The first impact of the epidemic on fabric products is spring and summer clothing fabrics.
According to usual practice, traders would successively ship orders for spring clothing fabrics before the Spring Festival holiday in previous years. After resuming work, they began to be busy with summer clothing fabrics. However, this year’s epidemic has compressed consumption to the extreme, resulting in The demand for spring and summer clothing fabrics has ended as soon as it started. Simulated silk, the mainstream product of spring and summer clothing fabrics on the market, is also in a situation of overcapacity. Several manufacturers of simulated silk fabrics said that there have been very few orders recently, and dyeing factories have entered the market of simulated silk. The warehouse volume has also been significantly reduced compared with that after the start of construction. It can be seen that the epidemic has disrupted all original production and sales plans.
If sales momentum is lost in the first half of the year, it may be regained at an accelerated pace in the second half of the year. Of course, the negative impact caused by the epidemic is still fermenting in the market. In the short term, the market is still plagued by “lack of orders”, and there is still a lack of “heat” for the development of autumn and winter fabrics.
However, some places are currently issuing consumption subsidies to stimulate consumption, which has been unanimously praised by the broad masses of the people. It is expected that with the fiscal and monetary policies of subsequent countries to encourage consumption and promote consumption, the situation will continue to increase. By increasing the number, people’s consumption of clothing will also improve. After all, people will be tired of the days of only watching live broadcasts online and buying and selling. There is still a lot of room for offline sales! All this will pave the way for the sales of autumn and winter fabrics in the second half of the year!
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