Under the cover of the nest, there are eggs, and the epidemic has an increasingly negative impact on the textile and apparel industry. On April 20, Esquel Group, currently the world’s largest cotton shirt manufacturer and exporter, announced on its official website that after deciding to close three factories one after another before the end of July, another international giant will give its employees a long holiday!
Pocheng, the world’s largest sports shoe leader Plans to give unpaid leave to more than 3,000 employees
Affected by the epidemic, Pou Chen International Group, the world’s largest sports shoe manufacturer, is responding by comprehensively reducing expenditures. On April 20, media reported that the top management of Pou Chen International Group has considered that from June to the end of December, everyone including personnel in Taiwan and overseas organizations must take 6 days of unpaid leave per month. It is initially estimated that the number of people affected will exceed More than 3,000 people; in addition to the implementation of unpaid leave, supervisors above the vice president level, including group CEO Cai Peijun, will all have a 10% salary cut; once the above plan is confirmed, this will also be the first unpaid leave in the 51 years since the founding of Pou Chen International Group and salary cuts.
However, according to sources, the above-mentioned plan is still in the discussion stage, and will have to go through two stages: the union’s negotiation and approval, and the employees’ signing of consent forms.
Public information shows that Taiwan Baocheng International Group is a listed company in Taiwan. It mainly produces and wholesales casual sports shoes, clothing and accessories. It is the world’s largest brand of sports shoes and casual shoes. The largest group, it designs, manufactures and produces for more than 50 internationally renowned brands in the world, including Nike, Adidas, Reebok, New Balance, Asics, Timberland, Converse and Rockport. Its industrial bases are widely spread in Taiwan, Mainland China, Indonesia, Vietnam, and the United States. and other regions, with an annual production of more than 170 million pairs of sports shoes, and a global market share of more than 15% in brand-name sports shoes and casual shoes. On average, 1 pair in 5 pairs of global brand-name sports shoes is manufactured by Baocheng Group.
It is reported that Baocheng Group has 350,000 employees around the world. Currently, the measures planned are limited to Taiwan and related regions. As for production bases in Vietnam, Indonesia, and mainland China, Employees are not included in the implementation targets. The financial report shows that due to the impact of the epidemic, Baocheng International Group achieved operating income of 59.461 billion yuan in the first quarter, a year-on-year decrease of 22.4%, a new low for the same period in the past six years.
The decline in textile exports in the first quarter was higher than that in 2009 after the financial crisis
According to China Customs statistics, in the first three months of 2020, China’s exports of goods trade were 3.33 trillion yuan, a decrease of 11.4%; imports were 3.24 trillion yuan, a decrease of 0.7%; the trade surplus was 98.33 billion yuan, a decrease of 80.6%.
In the first quarter of this year, the country’s total exports of textiles and apparel totaled US$45.264 billion, a year-on-year decrease of 17.7% (a year-on-year decrease of 15.9% in RMB). Among them, the cumulative exports of textiles were US$22.694 billion, a year-on-year decrease of 14.6% (a year-on-year decrease of 12.7% in RMB); the cumulative exports of clothing were US$22.570 billion, a year-on-year decrease of 20.6% (a year-on-year decrease of 18.9% in RMB).
From the perspective of product categories, industry exports continue to show a trend of differentiation. According to customs statistics, the year-on-year decline in exports of textiles, including yarn, fabrics, home textiles, industrial and other finished products, rebounded by 5.3 percentage points from the previous two months. The decline in exports of downstream clothing products continued to deepen compared with the previous two months. 0.6 percentage points.
In March, my country’s textile and apparel exports were US$15.43 billion, a year-on-year decrease of 12.9% (a year-on-year decrease of 10.0% in RMB). Among them, textile exports were US$8.922 billion, a year-on-year decrease of 4.9% (a year-on-year decrease of 1.7% in RMB); clothing exports that month were US$6.508 billion, a year-on-year decrease of 22.0% (a year-on-year decrease of 19.3% in RMB).
An analysis by China Textile Federation Industrial Economics Research Institute pointed out: Judging from the textile and clothing exports over the years, due to the impact of the new coronavirus epidemic, the current level of decline in my country’s textile and clothing exports has even exceeded the financial crisis. 2009 after it happened. According to statistics, in 2009, the country’s exports of goods fell by 16.0%, and the exports of textiles and clothing fell by 10.07%. In the first quarter of 2020, the country’s exports of goods fell by 13.3%, and the decline in textiles and clothing exports deepened to 17.70%.
The Ministry of Industry and Information Technology pointed out three major difficulties for small and medium-sized textile enterprises
Last week, the Joint Prevention and Control Mechanism of the State Council held a press conference to introduce the orderly resumption of work and production of private enterprises and small and medium-sized enterprises.
At the meeting, Xu Kemin, Director of the Department of Industrial Policy and Regulations of the Ministry of Industry and Information Technology Introduction: The current international epidemic is spreading rapidly, and the textile industry, especially small and medium-sized textile enterprises, have reported some difficulties.
1. Insufficient demand
From a domestic perspective, from January to February, units of clothing, shoes, hats, and needles above the domestic market quota Retail sales of textiles fell 31% year-on-year. From an international perspective, since March, a large number of export orders have been delayed or canceled, and new orders have also decreased significantly. According to the latest survey results of more than 100 key enterprises by the China Cotton Textile Industry Association, the proportion of enterprises reporting insufficient orders reached 63.6%.
2. Pressure on the industry to stabilize employmentIncreasing
The pressure of reduced orders is being transmitted upstream along the industrial chain, which will have an impact on the normal operation of the textile industry chain, and the employment situation in the industry is becoming more severe. .
3. Enterprises reported financial constraints
Affected by the decline in orders and withdrawals Due to the impact of the epidemic, the inventory backlog of raw materials and finished products in textile companies is increasing. Especially in the chemical fiber industry, because continuous production cannot be stopped, it is facing great inventory pressure and the amount of funds is also increasing.
The second quarter will still be under pressure
The analysis of the China Textile International Capacity Cooperation Enterprise Alliance believes that the outlook In the second quarter, affected by the global spread of the new coronavirus epidemic, my country’s textile industry faced severe challenges in “stabilizing foreign trade” and “stabilizing employment.” The sudden cancellation or postponement of overseas orders has brought a high degree of uncertainty to the operations of domestic textile companies that have resumed work and production, highlighting various practical problems in terms of market demand, inventory, cash flow, etc. It is necessary for the government, enterprises and industry organizations to work together to take a variety of effective measures in a timely manner to win the “war for survival” in the second quarter and enhance the resilience of the industry’s future development.
Zhao Ping, director of the International Trade Research Department of the China Council for the Promotion of International Trade Research Institute, believes that although the foreign trade situation improved in the first quarter, there will still be great pressure on future growth. Affected by the global epidemic, external demand remains weak. In particular, China’s major trading partners, the European Union and the United States, have become the hardest-hit areas by the epidemic. Orders held by some foreign trade companies have been postponed or canceled, and new orders have been affected. Exports in the consumer industry have been greatly affected in the short term, and the foreign trade industry is still in contraction. The challenges remain huge. </p
