The epidemic has spread across the world, which means huge pressure on foreign trade companies. A survey of more than 7,000 foreign trade companies conducted by the Ministry of Commerce and China Sinosure showed that after the outbreak, more than 90% of companies were forced to postpone shipments and foreign exchange collections.
Video conferencing, international mail, etc., the business department of Shanghai Textile Decoration Co., Ltd. has been very busy recently. As a foreign trade company whose core business is sweater exports, orders have been hit, making business department managers anxious. Communicate with overseas customers in a timely manner, evaluate existing production capacity, and formulate plans for longer-term foreign trade business development. Although difficult, they are already looking to the longer term.
A large number of orders have been delayed in delivery. “The current orders are only about half of the original ones, and many have been canceled or stopped.” After the epidemic hit, the order situation made people feel helpless.
Recalling the situation two months ago, Wang Wei, the deputy general manager in charge of foreign trade business, still remembers it fresh. At that time, the Spring Festival holiday had just passed, and the epidemic had a greater impact in China. Overseas customers were worried that there would be problems in the supply chain and they would not be able to deliver on time. “We also communicated the situation with customers as soon as possible, hoping to get their understanding. Now, the situation is reversed.”
“In February, we were trying our best to prove to our customers that ‘we are fine’ and that it would not affect our business. In March, we were constantly confirming with our customers ‘Are you okay?’ Do you want to continue? Can you still receive the goods?” The online ridicule has become a reality. In the first and second half of the epidemic, foreign trade companies caught up.
According to her, at this stage, many customers have made requests to reduce production or simply suspend production. A large number of orders have been extended, resulting in a deadlock.
Wang Wei, who just hung up the phone, is about to hold another video conference. “Now overseas customers are also working from home, and it takes a long time for them to give feedback. We have to keep an eye on them every day, maintain close contact with foreign customers, and have first-hand information to respond in a timely manner.” Because of the time difference, she stayed awake during the middle of the night shift. Reply to emails at your desk, hoping to get the quickest reply.
Similar situations also plague almost all foreign trade companies. The person in charge of a private foreign trade company revealed that the company’s order volume dropped by 90% year-on-year. “Spring was originally the peak season for the garment industry, but we didn’t expect the epidemic. Although the factory resumed work, there were no orders to fill.” Under the predicament, the company could only let employees take turns. “In the apparel industry, the domestic market is also becoming saturated. Currently, there is not much opportunity for exports to domestic sales. We can only control costs first and wait for opportunities.”
Gradually move towards independent design. Order delays, business difficulties, and epidemic situation Foreign trade companies below are also looking for opportunities.
Wang Bei, deputy general manager of a textile decoration company in charge of the sweater business, is now considering not only how to minimize the impact of order losses, but also how to maintain orders and customers after the epidemic.
Today, on the shelves of department stores in Japan, Europe and the United States, mid-to-high-end sweater products with textile decoration are very popular because of their own characteristics. The export price alone has reached more than 20 US dollars per piece. This gave her more inspiration.
“In the past, our exports were under the OEM model. The brands themselves controlled the core technology, design, development of new products and sales channels. We were only responsible for production. Manufacturing. The outbreak of the epidemic has made us rethink traditional manufacturing. Relying on the platform and resources of our sweater design and R&D center, we have gradually transformed into an ODM model. On the basis of providing traditional foreign trade services, we can also provide raw materials for clothing products. Carry out partial or complete independent development of products, styles, and knitting structures, and provide customers with value-added services such as the push of derivative products and derivative designs on the cloud platform.” Wang Bei said that such a transformation is an inevitable trend.
“Chinese manufacturing companies should not only have pure production capacity, but should fully participate and integrate into both ends of the market and respond quickly to user experience, so that they can be more competitive in the international market.” She pointed out that in the short term It seems that textile and clothing exports will lose sales opportunities for 1-2 seasons due to the shrinking market demand caused by the epidemic in Europe and the United States. “However, based on the company’s own innovative development and production and R&D capabilities, the stickiness of large customers has not been affected by the epidemic. Many customers have also made it clear that after the epidemic, all orders will continue or even increase.”
Acceptance More international production capacity According to data released by the General Administration of Customs, in the first two months of this year, clothing exports were 112.26 billion yuan, a decrease of 18.7%; textile exports were 96.23 billion yuan, a decrease of 18.7%. During the epidemic, the foreign trade orders of textile decoration companies decreased, but their sales in Ethiopia…The sweater factory is accelerating in full swing.
Li Jie, the general manager of the company, regards the epidemic as an opportunity to “cultivate internal strength.” He said that “crisis” means the coexistence of “danger” and “opportunity”. The sudden drop in orders is a danger, and the short window period also gives companies the opportunity to make timely repairs and upgrades.
In his view, Africa is one of the regions that best possesses the attributes of “raw material base + manufacturing base + sales base” for the future textile industry. Ethiopia’s wool Once the sweater factory is put into operation, it will make full use of local advantages such as cheap land, labor, and electricity resources to enhance the supply chain layout and international production capacity of sweater products. In the future, sweaters produced here will cost less and be more cost-effective.
Seizing the vast market brought by the “One Belt and One Road”, conducting in-depth cooperation with African countries along the route, and undertaking more international production capacity transfers in the manufacturing industry will become new development opportunities for trading companies to enhance their core competitiveness.
Currently, most foreign trade companies have been severely impacted. But Li Jie said that textile decoration should strive to be the first company to stand up after falling. Behind this, of course, the company itself needs to have a competitive advantage, whether it is products or all aspects of the supply chain. Amid the epidemic, this foreign trade company has set its sights on the longer future.
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