Recently, many textile foreign trade factories in my country have experienced a surge in orders. In fact, the sudden outbreak of the textile market seems to have “ignited” the entire foreign trade industry, and many practitioners are optimistic that orders will continue to pick up.
However, in addition to the continuous prosperity of orders, textile and garment foreign trade companies also face many risks and problems. In addition, with the recent resurgence of overseas epidemics, the risks of foreign trade exports have increased, and we need to be cautious while being optimistic.
European epidemic continues to worsen
French Prime Minister’s speech: Continue to close the city!
On November 11, France had 35,879 new confirmed cases in a single day, bringing the total number of confirmed cases to 1,865,538. There were 329 new deaths, bringing the total to 42,535. The current number of hospitalizations for COVID-19 in France has exceeded the peak of the first wave of the epidemic in April; sources in the EU revealed that if the epidemic is not controlled and the number of hospitalizations continues to increase, the EU will extend the blockade measures.
Two weeks have passed since the second lockdown began. The French Prime Minister delivered a speech on the current epidemic situation at 18:00 on the 12th.
The following are the key points of this speech:
With others Like European countries, the second wave of the epidemic is very violent. The pressure on hospitals is also very high. Every 30 seconds, someone is hospitalized due to COVID-19 infection, and every 3 minutes, a patient enters the intensive care unit. The peak hospitalization rate even exceeds April.
42,500 patients have died in France since the start of the coronavirus pandemic. He was saddened and sympathized with the more than 10,000 deaths in the past week and the recent 400 to 500 deaths from the coronavirus every day.
Although the recent epidemic situation has improved, it is “irresponsible” to lift restrictive measures, and the French government has decided to do so for at least the next 15 days. , the city closure measures continue to be implemented, and all original regulations remain unchanged.
Shopping malls and “non-essential” stores continue to remain closed. The Prime Minister expressed the hope that everyone can reopen during the Christmas period, but it is obvious that that time has not yet arrived, and we still need to remain cautious. Let everyone reduce travel as much as possible.
New confirmed cases exceed 100,000 for 9 consecutive days
Biden’s new crown adviser: Nationwide lockdown may be possible Controlling the Epidemic
Michael Osterholm, the epidemic adviser to U.S. Democratic presidential candidate Biden, said that a nationwide lockdown may help make the United States’ new coronavirus epidemic worse. The epidemic was brought under control and even prompted the U.S. economy to recover.
According to ABC News, Osterholm was interviewed by Yahoo Finance on Wednesday (11th) This idea was proposed. Osterholm said the United States can manage the COVID-19 epidemic by closing businesses for four to six weeks and paying people lost wages until people are vaccinated.
Osterholm said the situation could lead to lower infection and hospitalization rates, as has been the case in New Zealand and Australia. “Then we could really see ourselves starting to use vaccines in the first and second quarter of next year and at the same time reopening the economy much earlier.”
Previously, Osterho Elm once co-authored an article with Minneapolis Fed President Neel Kashkari and pointed out that the problem with the US lockdown from March to May this year was that it was not strict nationwide. “For example, 78% of people in Minnesota believe that work is essential.” They pointed out that “to be effective, the lockdown must be as comprehensive and strict as possible.”
According to reports, the University of Minnesota Infectious Diseases Osterholm, director of the Research and Policy Center, was appointed as a member of the Biden team’s new crown epidemic adviser on the 9th. He served as the U.S. Department of State’s Special Envoy for Health Security Science from June 2018 to May 2019.
According to CNN, among the 50 states in the United States, 44 states saw an increase of at least 10% in new confirmed cases within a week compared with the previous week. There are currently more than 1,000 new hospitalized patients with COVID-19 in the United States on average every day. CNN stated that these figures are very pessimistic because an increase in hospitalizations is usually accompanied by an increase in deaths.
Some experts said that the current sharp increase in confirmed cases of new coronary pneumonia is far beyond most people’s imagination. Even so, the worst days of the U.S. epidemic are yet to come. In the next few weeks, it would not be surprising if there are more than 200,000 new confirmed cases in a single day.
According to real-time statistics released by Johns Hopkins University in the United States, as of about 15:30 on the 12th, Beijing time, the cumulative number of confirmed cases of new coronary pneumonia in the United States was 10,400,227, and the cumulative number of deaths Cases are 241798 cases. According to US media reports, since November 3, the number of new cases in the United States has exceeded 100,000 for nine consecutive days; on the 11th, there were 144,133 new confirmed cases in a single day in the United States, reaching a new high again. On that day, three states in the country, West Virginia, Pennsylvania and Illinois, recorded new highs in new cases in a single day.
The international shoe and clothing giant issued a warning:
The next three months are not optimistic!
German sportswear giant Adidas Group recently stated that the new round of blockades caused by the second wave of the epidemic will not only interrupt the current recovery process, but may once again impact the group’s performance.
In recent weeks, due to the second wave of the epidemic in Europe, some Adidas stores have once again suspended operations. The government’s stricter social distance has also led to a continuous decline in customer traffic in European physical stores. Adidas is the first European consumer goods company to issue a profit warning.
Adidas pointed out that the company’s recovery process in the fourth quarter has been suspended. If 90% of stores can continue to remain open, sales in this quarter are expected to decline by low to mid-single digits. However, if the government further tightens restrictions, actual results may be further lower than expected. Adidas expects operating profit in the fourth quarter to be between 100 and 200 million euros.
Adidas CEO Kasper Rorsted pointed out in the conference call that the group has temporarily closed 8% of its stores around the world, of which 40% of stores have been closed in the European market. On November 10, Adidas’ stock price fell as much as 6.7%, and then rebounded to close at 281.9 euros per share, a drop of 5.6% that day.
Export enterprise risks are further increasing
Recently, many textile and garment foreign trade factories have suddenly experienced a sudden burst of orders. It seems that the entire A “spring breeze” is blowing across the industry. Although it is a good thing to have huge sales, the risks behind it cannot be ignored.
Due to the second outbreak of the new crown epidemic in European and American countries, more stringent control measures may be introduced in the future, resulting in a significant drop in customer orders, and there is a risk of a significant reduction in subsequent orders. Moreover, due to the sudden market situation, manufacturing companies may face problems such as rising raw material prices, high labor costs, and insufficient production capacity.
Industry insiders pointed out that many foreign trade factories have closed down during the epidemic this year, and the economic crisis has become highlighted. Coupled with the U.S. tariff policy that may be about to reverse, the entire industry chain is panicking. The current sharp increase in raw material prices has made it difficult for many foreign trade factories to afford it. However, once the price of goods is raised, customers are unwilling to accept it, so many companies choose to bear the cost silently. In other words, although orders increased, companies made little profit.
In addition, the epidemic that has lasted for more than half a year has caused the loss of part of the labor force. Now orders have increased sharply, and labor costs have also risen. Relevant data shows that many factory labor positions are facing a “labor shortage.”
Insufficient production capacity is also a headache for many companies. Orders have increased sharply and delivery times are tight, but factories may not be able to ship on time. At the same time, they are also worried that tight orders may lead to quality problems and affect brand reputation.
At the same time, as the peak season at the end of the year approaches, foreign trade export orders have grown rapidly, resulting in a significant increase in international ocean freight, frequent cargo dumping, and further increased risks for export companies. </p
