Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News 2.25 million people in the United States are unemployed! A large number of foreign trade orders have been cancelled. How can textile companies stop losses?

2.25 million people in the United States are unemployed! A large number of foreign trade orders have been cancelled. How can textile companies stop losses?



Every link in the textile and garment industry, from raw materials to production to sales, is having a hard time. The economic environment, industrial transformation, and comprehensive social transformation are…

Every link in the textile and garment industry, from raw materials to production to sales, is having a hard time. The economic environment, industrial transformation, and comprehensive social transformation are all forcing the textile industry to undergo a reshuffle at the same time as other industries. era.

As the coronavirus storm sweeps the world, former Trump advisers warn that the coronavirus could trigger another Great Depression.

cnn report screenshot

A large number of well-known Brand announces discontinuation of production

Your favorite global brands such as Hermès, Gucci, and Chanel have all announced the discontinuation of production.

On March 18, according to foreign media reports, following Hermès and Gucci, a brand of Kering Group, Chanel also decided to suspend sales in the short term. production, will close its factories in France, Switzerland and Italy over the next two weeks.

Chanel women’s shoes (official website screenshot)

“Chanel according to the latest Following government directives, the company has decided to close all of its production sites in France, Italy and Switzerland, as well as the production of haute couture, ready-to-wear, fine jewelry and jewelry,” Chanel said in a statement.

Due to the new crown epidemic, luxury brands owned by the French Kering Group have closed 6 production plants in Italy.

Luxury brand Hermès also announced the temporary closure of all 42 of its factories.

Gucci stated that in order to protect the health and safety of relevant personnel, all production plants in Italy will be temporarily closed. Considering that Italy is still under lockdown, it is expected that Gucci will continue to close its factories after March 20.

In addition to the forced closure of factories and stores, the most important annual holiday shows of luxury brands have also been postponed or even canceled.

Last week, Gucci just announced the cancellation of the 2021 resort series show in San Francisco on May 18. The new time and location of the show will be announced at a later date and has not yet been determined.

Gucci, Versace, Prada, Giorgio Armani and other luxury brands have also made the same decision, which means that all business in the luxury goods industry may be at a semi-standstill in the first half of the year.

In addition to the shoe and clothing industry, the automobile industry is not much better.

According to statistics, affected by the new coronavirus epidemic, as of March 19, there were 14 mainstream multinational automobile companies around the world, including Volkswagen, BMW, Toyota, Ford, and Tesla. The group has announced the closure of some factories. The total number of factories affected worldwide has reached more than 100.

In the wave of globalization, no country or individual can stay away.

2.25 million people in the United States are unemployed, a record high

On March 19, according to well-known foreign Media CNN report:

CNN report screenshot

Goldman Sachs predicts that this week 2.25 million Americans filed for first-time unemployment claims, a record high.

Americans are starting to lose their jobs due to the coronavirus pandemic, and economists expect the situation will only get worse here. And it’s fast.

Earlier Thursday, a government report showed that 281,000 Americans applied for first-week unemployment benefits last week. The sudden jump of 33% a week ago was the largest percentage increase since 1992.

But next week’s report could be worse, according to economists at Goldman Sachs.

They predict the report will show 2.25 million Americans filed for unemployment benefits this week for the first time, eight times the number of people who filed for unemployment benefits last week and the most on record highest level.

Look at recent reports on order cancellations:

Some bosses have chosen not to start work. Is this helpless or wise?

In previous years, March was usually the season with the highest start of work in the whole year, but this year the performance was “different”: first, the start of work was delayed due to the epidemic, and then the recovery was slow due to lack of work. , and now we don’t want to start work due to poor orders. After twists and turns, many textile bosses are currently in this state of mind, but the costs of equipment depreciation, rent, labor, water and electricity, etc. force them to start work. Only when work is started can output value be achieved. Of course, a small number of bosses choose to maintain low work hours, or even Not working.

“Currently, 20% of the machines are in operation in the factory.For equipment, raw materials are plummeting and there are not many orders. Inventory can easily depreciate. It is very unwise to occupy too much funds in today’s market. “Mr. Chen, the owner of Keqiaoyi Textile Co., Ltd. said.

In addition, I heard that a few textile bosses who opened factories in Jiangxi chose not to start work to avoid the pessimistic situation in the first half of this year. Market. According to relevant sources, out-of-town production and local distribution are the way of survival for many factories built in the Midwest. During the epidemic, due to logistics obstruction, the inventory previously shipped to local warehouses has been successfully digested, so the inventory of these small factories is not High, and some even have no inventory. Considering the risks of the current market, these bosses have chosen not to start work temporarily in order to avoid the difficulties caused by this “black swan”.

Stabilize the Southeast Asian market, switch from foreign trade to domestic trade, and receive online orders

Currently, the epidemic The extent of the impact in Southeast Asian countries is not as high as that in European and American countries. Southeast Asian countries rely heavily on China’s supply of textile raw materials, and supply was once cut off due to the epidemic. As Chinese export textile companies gradually resume work and production, protecting and stabilizing market share in Southeast Asia has become an important issue for export textile companies. Foreign trade is the top priority.

Under the current situation of effectively curbing the spread of the epidemic in China, textile and clothing export companies may wish to give due consideration to the domestic market. In the short term, foreign trade will Domestic trade is not a bad idea. While sticking to your original position, you can properly develop domestic trade customers and achieve both development and maintenance. This way you can keep the business going and not be unsustainable due to lack of orders. Also The focus of foreign trade sales can be shifted to areas with less or no epidemics and open up new overseas markets.

In addition, recently, the Zhejiang Provincial Council for the Promotion of International Trade has actively organized companies to participate in the Intelligent Cloud Exhibition ( CALSEE) system provides services for online viewing of a number of international exhibitions. Exhibitors can communicate and negotiate with merchants at the exhibition site through the Internet at any location, obtain merchants’ demand information, and solve the problem of not being able to get booths of well-known exhibition companies due to the epidemic. and other factors affecting the inability to attend the exhibition in person.

Conclusion:

Despite the current severe situation of the global spread of the epidemic, many textile and clothing export companies are also full of hope: “As long as the epidemic is under control, China’s complete industrial chain will still attract overseas orders. The current difficulties are only short-term and temporary.” ”</p

This article is from the Internet, does not represent Composite Fabric,bonded Fabric,Lamination Fabric position, reproduced please specify the source.https://www.tradetextile.com/archives/37044

Author: clsrich

 
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