According to a report on the Spanish “El Pais” website on March 1, 2020 will cause a heavy blow to the textile and apparel industry around the world. First the lockdown in response to the pandemic, then the restrictions on business and leisure activities, as well as telecommuting and a worse economic outlook, have minimized the desire to put on new clothes and the possibility of doing so. As a result, about half of the world’s population wears activewear most of the year. People did buy a lot online, but not enough to offset the economic collapse.
A survey by McKinsey Consulting showed that the crisis caused companies in the textile and apparel industry to lose 30% of sales and 90% of profits globally. The arrival of vaccines gave the industry hope late last year, but the slow pace of vaccinations is likely to prolong the painful period for the textile and apparel industry until at least this summer.
“Uncertainty” is the word that reporters heard most often when consulting corporate managers and experts about business development prospects in 2021. Industry insiders believe that within 2021, the textile and garment industry will be unable to regain lost ground. The industry will also experience some changes: production activities are closer to the market; supply is more flexible; product ranges are smaller, cheaper, and more durable; they may be less relevant to seasons; and there is a greater focus on sustainability.
It is reported that the emergence of the pandemic a year ago greatly impacted the textile and apparel industry. The forced suspension of business activities has caused the industry’s revenue sources to dry up and forced many well-known European and American brands to protect their liquidity by canceling and delaying orders (even some were already in progress) or deferring payments.
An anonymous head of a Spanish clothing company said: “During Europe’s lockdown, our payment time for all suppliers has been extended by 30 days. It had a big impact on them, but it was a matter of our survival. It wasn’t until last August that we more or less restarted the supply chain.”
The report also said that this impact has touched the other end of the chain, that is, the large number of employees employed by textile and apparel companies (many concentrated in Asia). A survey conducted by relevant organizations focusing on labor rights around the world showed that in 2020, 38% of employees in textile and apparel companies (sampled in 9 countries and regions) lost their jobs, and these employees and their families generally suffered The effects of poverty and hunger.
The report pointed out that although the initial impact has been alleviated and production and trade activities have gradually returned to normal, subsequent waves of epidemics have brought new trade and personnel flows. restrictive measures.
According to consulting firm McKinsey, by the end of last year, the global textile and apparel industry had lost 20% to 25% of its sales, with Europe losing 25% to 30% and the United States losing 25% to 30%. Loss of 20% to 25%. Depending on the specific circumstances of each country and region, it is expected that the industry data level of 2019 will not be restored until the end of 2022 or 2023.
McKinsey said that the unsold ready-made clothes in stores and warehouses around the world are currently worth approximately US$168-192 billion (approximately 140-160 billion euros), more than before the epidemic. 2 times. </p
