The textile market in May seems to be diverging, and both domestic trade and export sales are unpredictable. Domestic textile and foreign trade bosses who have been suffering from a lack of orders in the early stage are looking forward to the overseas market recovering as soon as possible.
In May, European epidemic control measures were gradually relaxed, and many countries began to resume work. It is reported that on the first day of resumption of work in France, long queues formed in front of Zara stores in many cities…Retailers are beginning to show signs of gradual recovery.
In addition, it is reported that with the lifting of restrictions related to the prevention and control of the new crown epidemic, European and American countries have begun to approach clothing orders. ,
The EU has begun to resume clothing orders from Myanmar and is expected to start trade in June
Myanmar’s “Seven Days” reported on May 19 that according to U Myint Len, chairman of the Myanmar Garment Association, as restrictions related to the prevention and control of the new crown epidemic have been lifted, EU countries have begun to contact them about clothing orders, and they are expected to receive them in June. Order. It is an excellent prospect for Myanmar’s garment industry, which has been through the epidemic for more than two months, and it is also good news for the 600,000 garment workers.
Affected by the epidemic, Myanmar garment factories have encountered difficulties such as layoffs, salary cuts, and production suspensions. The EU market accounts for 65% of Myanmar’s garment processing, that is, 65 out of 100 pieces of garments enter the EU market. In recent years, EU orders have increased year by year, with an annual growth rate of 30%. Exports in the first six months of the 2019/20 fiscal year were US$2.3 billion, an increase of more than US$200 million over the same period last year.
60 American shoe and apparel companies went to Vietnam to find factories!
On May 25, Vietnam News Agency reported: Vietnamese leather shoes and luggage manufacturers are launching a trade promotion plan to find new customers to increase export opportunities. The Trade Promotion Bureau of the Ministry of Industry and Trade of Vietnam, the Economic and Commercial Office of the Embassy of Vietnam in the United States, and the Footwear Wholesalers and Retailers Association of the United States (FDRA) will jointly hold an online conference in the field of footwear and luggage from May 28 to 30. It is expected that the conference will attract 60 American footwear import companies to participate, aiming to find new suppliers.
The event was held against the backdrop of the severe impact of the COVID-19 epidemic on the global trade supply chain and attracted 60 US companies to participate. This shows that the supply capacity of Vietnam’s leather shoe industry is still limited by importers. of high praise. Nguyen Thi Thu Thuy, deputy director of the Trade Promotion Bureau, said that at the meeting, Vietnamese companies will have the opportunity to update information about the U.S. footwear market, new trends in the market, the impact of the COVID-19 epidemic, market demand after the epidemic is under control, and entering the U.S. market way etc. Nguyen Thi Thu Thuy pointed out that the United States is a large sales market. When American companies agree to trade with suppliers, Vietnamese companies must take advantage of this opportunity to promote their products. The biggest goal is to make importers confident and sign contracts.
According to the organizing committee, 15 large companies from Vietnam’s Ho Chi Minh City, Hai Phong, Hanoi, Can Tho and Dong Nai provinces and cities participated in this online meeting. They are ready to market their products to American businesses.
According to data from the American Footwear Wholesalers and Retailers Association, U.S. importers still like footwear products produced in Vietnam. According to statistics, U.S. imports from Vietnam The amount increases year by year. In 2019, U.S. companies imported $8.2 billion in footwear and handbags from Vietnam, an increase of $1 billion compared with 2018.
Nguyen Duc Thuan, chairman of the Vietnam Leather, Footwear and Luggage Association, said that before the outbreak, Nike, Adidas, New Balance, Lululemon ( Major leather shoe brands such as Lululemon are also increasing their orders in Vietnam.
Nguyen Duc Thuan, chairman of the Vietnam Leather, Footwear and Luggage Association, said that it is predicted that after the new crown pneumonia epidemic is brought under control, Vietnam’s footwear exports to markets such as the United States and Japan are expected to continue to grow. growth trend, therefore, Vietnamese companies should seize opportunities, find new customers, and increase production and exports after the epidemic. In 2020, Vietnam’s leather shoes and luggage industry strives to achieve a total export target of US$24 billion.
According to statistical data, as of the first quarter of 2020, Vietnam’s leather shoes and luggage industry has exported products to more than 100 countries in the world, including countries with export sales of more than 1 million US dollars. There are 70 in total.
Southeast Asia is receiving more and more orders, which may speed up domestic raw material procurement! But the trade market may continue to be dormant!
The recovery of orders will usher in an excellent prospect for the Southeast Asian textile and garment industry that has experienced more than two months of epidemic, and is also good news for domestic textile and foreign trade companies. After all, China is an investor in Southeast Asia’s textile and apparel industry and a source of important raw materials and intermediate products. The improvement of Southeast Asia’s apparel industry is bound to accelerate the purchase of domestic fabrics.
It is reported that many textile bosses have recently stated that foreign inquiry orders have begun to increase. “Recently, our domestic market orders have been increasing, and many of them are sold to Zhongda. However, there have been more and more inquiries about prices for foreign orders recently. Although the orders have not been placed yet, at least they are starting to move.” A textile company specializing in fashion fabrics the boss said.Coincidentally, the person in charge of another foreign trade company said that orders are gradually recovering. He said: “Since the outbreak of the overseas epidemic, we have had no orders for a full month. Now we have finally started to get orders. It is impossible to recover to last year.” It is possible, and it is estimated that there will be at least a 50% sales drop this year.”
This is undoubtedly a good thing for domestic foreign trade companies that are eager to recover. However, for textile owners, the most difficult thing is that after the orders from the previous year are completed and there is no new order cycle, the workers’ income will be a huge expense.
The monthly cost of a factory with 100 looms and 50 workers is almost 400,000 yuan (including rent, water and electricity, labor, and excluding raw materials). For the boss, without replenishing the order, he still needs to bear the cost of hundreds of thousands or more, and the pressure is evident.
At the same time, the real recovery may still take some time. “It is much more difficult to do foreign trade this year than domestic trade. The factory has accumulated inventory for one and a half months, and there are still some early orders.” The shipment has been delayed until now, and customers have not asked for the goods. The inventory is still low. This is enough to test our funds!” In addition to inventory and financial pressure, many foreign trade bosses are under great pressure. From time to time, there are also reports of bankruptcies and closures of companies abroad. to their hearts.
From a questionnaire survey on foreign trade orders in mid-May, nearly 80% of the bosses who participated in the survey said that foreign trade orders had not improved. “80% of our previous major customers were from abroad. There have not been many new orders recently. In previous years, at this time, we would focus on proofing orders for next spring and summer. Currently, these orders have not been placed.” Another fabric supplier serving Japanese clothing manufacturers He also said that there have been very few orders recently, and now the core sales staff have started to start side jobs.
In any case, it is already halfway through May, and the recovery of the foreign trade market that textile people are looking forward to is not obvious. In previous years, June and July were the off-season for the foreign trade market, and many European and American companies The country has the habit of taking summer vacations, so the sales cycle has been compressed again. No wonder some textile bosses said: There is great pressure to improve foreign trade in the first half of this year. The key depends on whether September can recover! </p
