Recently, a screenshot like this was leaked in WeChat Moments. Some netizens said, “Foton canceled 4,500 tons of orders in one day, including several hundred tons of it.” It even chilled the hearts of many onlookers.
National Bureau of Statistics and China Customs Statistics Data show that since 2020, the textile industry has been significantly under economic pressure due to the impact of the epidemic. From January to February, the industrial added value of the national textile industry above designated size (including spinning, weaving, knitting, printing and dyeing, and household and industrial finished products) fell by 27.2% year-on-year, the industrial added value of the clothing industry fell by 28.9% year-on-year, and the chemical fiber industry fell by 28.9% year-on-year. down 10.7%.
The output of the 15 major categories of products for which statistics are available all showed negative growth, and the negative growth rate of more than half of the categories exceeded 30%. The retail sales of clothing, shoes, hats, and knitted textiles in units above designated size across the country fell by 30.9% year-on-year, and the decline was significantly greater than that of products with rigid consumer demand such as food and daily necessities. The total export volume of textiles and clothing was US$29.83 billion, a year-on-year decrease of 20%.
If you don’t resume work and await death, if you resume work you will seek death. This is becoming a dilemma for many textile and garment manufacturing companies, including Futian Industrial.
Industry insiders believe that since the outbreak of the new crown epidemic, concerns about the impact of the epidemic in China causing disruption to the global industrial chain and accelerating the relocation of industrial chains from China have increased significantly. However, Founder Securities analyst Tao Chuan said that the direct impact of the epidemic on exports has already appeared, and the secondary impact of the evolution of overseas epidemics on exports is still fermenting. From the supply side, the short-term impact of the epidemic on exports is mainly reflected in the tightness of the manufacturing supply chain due to the obstruction of freight, and the delay in the resumption of work by enterprises, which has prolonged the delivery cycle of original export orders. Unlike the SARS epidemic, this time The impact of the COVID-19 epidemic on the global economy will be more reflected on the demand side. In particular, the economic growth of China’s major export destinations has slowed down and import demand has weakened, which will further drag down China’s exports.
China Merchants Securities Xie Yaxuan said frankly that since the 2008 financial crisis, China’s backward participation in the global value chain has continued to decline, indicating that China has replaced and reduced its participation in the global value chain through industrial chain upgrading. Import of intermediate goods.
Based on calculations of the production industry chain and export value-added rate, Zhang Bin, Wang Yaqi, and Zou Jingxian found that China’s export value-added rate has continued to increase, rising from 69% in 2000 to 84% in 2014, of which the export value-added rates of processing trade and general trade increased from 56% and 85% to 78% and 89% respectively, with increases of 22 and 4 percentage points respectively. Through the decomposition of the export value-added rate, it is found that the largest contribution to the increase in the export value-added rate is the intra-industry effect, not the inter-industry effect. This shows that the technological upgrading route of Chinese manufacturing enterprises prefers to replace imported intermediate products rather than exporting new products.
Xie Yaxuan believes that as the demographic dividend gradually disappears, China’s labor cost advantage will gradually weaken. The proportion of the export delivery value of typical labor-intensive industries such as textiles and clothing, furniture, fur, feathers, shoes, and cultural, sports, and entertainment products in the industry’s main business revenue has actually been declining since 2008. , indicating that the out-migration of these industries has been continuing, especially to neighboring countries with labor advantages such as Vietnam, Myanmar and Cambodia.
The Ministry of Commerce recently stated that at present, the new crown epidemic is spreading around the world. In the future, foreign trade companies may encounter problems such as sluggish external demand and reduced orders. For this reason, , various departments have intensively introduced policies to stabilize foreign trade, support foreign trade companies in ensuring markets and orders, and guide companies to prevent risks.
In today’s market, it is normal for orders to be reduced and canceled. However, it is a good thing to have some orders in hand, but it is difficult to guarantee whether these orders can be completed normally. It has often happened that the process is halfway through but suddenly canceled. The textile company in the picture below encountered this kind of situation. All crepe dyeing orders were canceled halfway by the customer.
Compared to direct cancellation of orders, orders that are canceled halfway are more annoying. However, the pneumonia epidemic in Europe and the United States has become more and more serious. It is inevitable that fabric orders from these regions will be postponed and canceled. But the most worrying thing is that half of the orders have been canceled.
When today’s textile workers receive an order, they are somewhat confused: Should the order be made or not? If you don’t do it, the delivery date will not be met; if you do it, it may be canceled halfway, which will waste investment and increase inventory.
In this special period, there are still some special requirements from individual customers, which are really objectionable to textile people, especially the following types of customers.
If you encounter the following 4 types of orders, don’t accept them!
1. Ask around for customers who are bargaining hard
When some customers need certain products, they might just call and ask. How about bargaining with one shop here and another here and there? What kind of craftsmanship? what is the material? how much does it lowest? Can it be cheaper? Okay, I’ll ask first and talk later. Then I went to inquire about the next one… I thought I was smart.If it’s so cheap, you’ve actually offended both the textile factory owner and the salesperson. Today you can inquire about the price everywhere and we’ll introduce you enthusiastically. Tomorrow when you really need it, they’ve blacklisted you and won’t accompany you!
2. Customers who place orders and owe money
Some customers have habits Every time we talk about cooperation and place an order, we just leave without saying a word. Some customers are in debt for a year and a half, and some customers just disappear after finishing their debt. Customers with such bad habits are either self-righteous or have poor character. They have no integrity and do not know how to be grateful. You think it is because of how much face you have. In fact, others already hate your behavior. Although debt is unavoidable, you must pay it back as soon as possible. It is easier to borrow and pay back the right way.
3. Don’t know how to pretend to know how to command
Have skills There is a big gap between professionals and non-professionals. Some customers may know some casting knowledge or know a few parts, so they think they are experts and become masters. In fact, it’s not on the tune as soon as you open your mouth. If you really understood, would you need to come to us? Sales technicians are very disgusted with people who don’t know how to pretend to know and do things on the side. Not only does it disrupt their thinking, but they also have to explain to you like they are playing the piano to a cow.
4. The delivery time is very urgent and no deposit is required
I called and said I needed the goods urgently, and that I would pay a deposit in a few days. Often, for such orders, the customer may have made them elsewhere and the samples were not done well. When you have a slight quality problem, I will either ask you to ship at a discount or cancel the order.
Although due to the pneumonia epidemic, the cancellation of fabric orders is considered force majeure. But it will definitely waste the textile people’s time and energy, occupy their working capital, and severely damage their confidence. Therefore, textile customers need to look at the market conditions rationally and avoid unnecessary losses that may be caused by placing orders.
For example: Recently, the number of transactions in the circle of friends is tens of millions or hundreds of millions↓
There is another signal of 1.5 billion orders, please take a closer look~
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