Shandong Yuncheng County Textile and Garment Association issued a notice on August 24, recommending that all textile companies in the county temporarily lower industry wages by less than 10% in response to the crisis of production restrictions and suspensions caused by the new crown epidemic and the international situation.
It is understood that the association has informed all companies to do a good job in ideological work for employees, so that employees can understand the severity and long-term nature of the entire economic situation, and proactively report the current status of the industry to superior departments. Keep superior departments informed of the real situation of the industry in a timely manner.
Downstream clothing consumption shrinks, impacting upstream raw material companies
Under the new crown epidemic, the clothing industry Suffering heavy setbacks and even experiencing a “great retreat” that is rare in history, some experts predict that the overall clothing industry will reduce revenue by at least 400 billion yuan this year, and the overall market size will shrink by 15%. Most clothing brands are facing risks.
Cheng Weixiong, a textile and apparel brand management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd., said, “This year is the first time since the reform and opening up that , the most difficult year for the apparel industry.” After decades of rapid development, the domestic apparel industry itself is already in a state of overcapacity, and the epidemic has accelerated the decline of the industry.
“If clothing consumption is not good, it will inevitably form a negative feedback on the upstream raw materials, which will lead to a sharp decline. This year, cotton and chemical fiber Raw materials and other upstream textile raw materials have all hit new lows in recent years, and chemical fibers have even hit record lows due to the plunge in crude oil.” said Wang Qianjin, information director of the Shanghai International Cotton Trading Center.
Facing a rare industry impact, how should garment workers save themselves?
Cheng Weixiong, general manager of Shanghai Liangqi Brand Management Co., Ltd., said that the “great retreat” experienced by the clothing industry is an inevitable consequence of the rapid development of the domestic clothing industry in the past few decades. , and the epidemic has accelerated and intensified industry changes. He believes that the garment industry will be difficult to get out of the development dilemma in the short term, and industry adjustment will last one to two years. During this period, backward production capacity will be eliminated, the strong will remain strong, and the domestic garment industry will gradually begin to shift from extensive to refined.
In Cheng Weixiong’s view, in the current difficult situation of the garment industry, the top priority for enterprises is to do a good job in internal control, ensure cash flow, and strive for survival. Come down. Secondly, the Internet is promoting the industrial upgrading of the clothing industry. Enterprises should make full use of new tools, new platforms, and new technologies to tap market demand and activate consumption potential. In addition, the overcapacity in the domestic garment industry is mainly due to the homogeneity and low-end competition in the industry. Therefore, it is recommended that enterprises work hard on technology research and development, strengthen innovation and application in original design and fabrics and accessories, such as environmentally friendly and healthy fabrics. Development and application, etc., to enhance the added value of enterprises and products and improve competitiveness.
The market is down, and companies have to adapt to survive. The person in charge of a textile company in Wuhan said that companies that were originally mainly engaged in the mid-to-high-end cotton yarn market were restricted by foreign trade exports. Because the high-end yarn market has declined sharply, they can only develop the domestic mid-to-low-end market.
However, it is not easy to break into the domestic mid- to low-end market. According to the company, foreign trade orders are mostly for high-end yarns, while the domestic market is mostly for mid- to low-end yarns. Affected by the foreign epidemic, corporate orders are now mainly for the domestic market. As the country returns to normal production order, traditional companies that have been deeply involved in the domestic market have maintained stable orders and full production due to their stable customer relationships. However, some companies that are engaged in foreign trade or produce mid-to-high-end products are facing pressure It is very big. As an outsider in the domestic sales market, it is not easy to squeeze into this circle.
We may have to prepare for a protracted war against the COVID-19 epidemic and the continued sluggish overseas markets and domestic demand! </p
