A sudden outbreak of COVID-19 has put people’s normal lives on hold and they have to fight against the epidemic by reducing gatherings outside the home. People urgently need to release their long-suppressed desire for consumption, and the words “retaliatory consumption” once appeared on the hot search list. However, what followed was damage to business operations and a decrease in employee income, making people anxious about the gradual return of domestic social life to normal. The crazy consumption behavior in the future has been discouraged and more rational.
This is especially true for the textile and apparel industry. Data released by the National Bureau of Statistics show that in March 2020, retail sales of consumer goods fell by 15.8% year-on-year, and the decline narrowed by 4.7 percentage points from January to February, indicating that social and economic activities have improved; but among them, clothing, shoes, hats, and knitted textiles It fell by 34.8% year-on-year, and the decline was larger than that in January and February. Although the domestic economic environment has improved slightly, the textile and clothing industry, which was already in the “cold winter”, has further cooled down.
As of April 29, the number of confirmed cases of COVID-19 in countries and regions outside China has exceeded 3 million. Although the number of new confirmed cases has slowed down, it still continues to increase at a daily growth rate of about 80,000, and has remained the same. For nearly a month. The COVID-19 epidemic outside China is still not optimistic, and the global economic shutdown has brought more uncertainty to consumption capacity and consumption expectations.
The so-called reversal of the situation is nothing more than that the three carriages of investment, consumption, and exports can run. If you want to stimulate investment, you must maintain profits on the consumption and export side. Due to the impact of the foreign epidemic, at least the export side There have been no new orders for a month, and a lot of production capacity depends on domestic sales. However, judging from the current situation of the textile and clothing industry terminals, the retaliatory consumption that has high hopes, at least in the textile and clothing industry, may not come.
A survey by Sina Finance shows that the sudden outbreak of the epidemic has made many people find that the clothing they were originally keen on over-purchasing has become less important. Many young people have begun to rethink their financial management and consumption concepts. This may come from changes in concepts and deflated wallets caused by reduced income.
Ren Zeping, chief economist of Evergrande Group, said that the main contradiction in current society is the contradiction between the people’s increasingly strong demand for retaliatory consumption after the epidemic and the lack of money in their pockets. Regardless, the textile and clothing industry is still benefiting from the situation. Downstream textile and clothing companies are constantly heard about cutting prices, destocking, suspending production and reducing production. The end market has not yet shown signs of improvement. On the basis of the expansion of the decline in textile and clothing consumption in March, there is the possibility of continued decline in April. . Judging from the performance of textile and clothing end products in the domestic cotton spinning industry, you may be overthinking the growth in retaliatory consumption. </p
