The epidemic is raging abroad, crude oil, stocks, futures and other commodities have fallen sharply, and the global economy has plummeted. In such a severe environment, the textile industry is also facing severe tests, especially export and foreign trade companies are facing the problem of chargebacks.
The cancellation of fabric orders has intensified
The situation of canceled orders from foreign trade fabric manufacturers is getting worse. In fact, as early as early February, when the domestic epidemic was raging and the country was shut down, some bosses reported that their orders had been cancelled, and they were domestic orders. At that time, a survey conducted by China Silk City Network showed that the cancellation of orders was only an individual phenomenon and not a common phenomenon in the market. Then, with the outbreak of the epidemic abroad, Boss Bu sent out news that foreign trade export orders had been cancelled. This is especially true in Italy, where export orders have been mostly cancelled. As the epidemic worsens, cities are closed in various places, and there are also news of delays and suspensions in shipping and air transportation. Therefore, the severity of order cancellations is exacerbated.
Some fast fashion brands have seriously canceled orders
Boss Bu also reported that the fabric orders of several major fast fashion brands in the world have been seriously canceled. There are many fabric manufacturers in Jiangsu and Zhejiang who are designated suppliers of such brands, so there are many companies involved in order cancellations. As the rapid development of the new coronavirus epidemic led to a significant reduction in consumer demand, the sales of clothing fast fashion brands in mainland China overall declined in the first quarter. In February, when the epidemic was at its peak, hundreds of stores of this type of brand were closed in mainland China.
The cancellation of orders today is not only due to the impact of the epidemic and the closure of stores and the decline in sales, but also due to the suspension of many shipping lines and routes, which has hindered exports. According to Boss Bu, the bonded area is no longer accepting goods, so even if foreign customers have orders in hand, they have to cancel or postpone them. Some cloth bosses also said that they can accept customers’ postponement of orders, but it is really difficult to accept direct cancellation, especially if they are already in production.
Boss Bu Feedback
A certain The designated fabric supplier of the fast fashion brand said: “My company has been cooperating with this company for many years. Last year, the market started to be bad, and orders were reduced. After resuming work this year, we finally got new orders not long ago. Who would have thought that these few I suddenly received an email today with several order cancellations!”
Foreign trade orders in some areas are being placed one after another
Although the recent negative news such as order cancellations is more Although there are many positive news to boost confidence, there is still positive news. A foreign trade fabric merchant told the editor: “Yesterday morning, the order of more than 10,000 meters placed by the American customer was ready for payment. Recently, the American order has been OK, with not many cancellations. However, in the afternoon, I received a cancellation of the order of more than 10,000 meters from the Italian customer. , It’s really a mixture of joy and sorrow.” Another Korean boss with a company in China also said, “Recently, Korean garment factories are still producing normally, and orders are being issued one after another, but the quantity is not large, mainly small orders, but overall The impact of the epidemic is not very big.” The United States, South Korea and other places where the epidemic is also severe are still placing domestic orders. Therefore, we cannot make generalizations and believe that there is no hope for foreign trade exports. The downstream weaving market is not sluggish either, it just shows uneven hot and cold conditions. The transactions of conventional products are acceptable, but for the weaving market with increased production capacity, the inventory has not improved much, and there is a phenomenon of goods being dumped, resulting in fierce market competition and many complaints from cloth bosses.
The global epidemic has affected the economy and brought big challenges, but even the cancellation of orders is temporary. All countries have introduced national salvation policies in response to the epidemic, so we must believeBelieve that everything will get better. The traditional peak seasons of “gold, three and silver” may not come, but as long as we work hard to manage our customers and orders, running the company will not be a problem. When spring comes around the world in the second half of the year, we will try to win more orders! <br
