The current epidemic has not passed yet, and the new coronavirus is cunning and changeable. The domestic control of the epidemic is temporarily stable, and major provinces such as Guangdong, Shandong, and Zhejiang have begun to resume work and production. Many people have focused their attention on imported cases. Enterprises that have resumed work and production must still take epidemic prevention measures and not relax for a moment!
United Nations: Epidemic leads to global export losses $50 billion! At least more than 10 billion yuan in the global textile and apparel industry is gone!
The global spread of the epidemic will inevitably have an impact on the domestic and foreign economies. The United Nations trade research agency said that China’s exports of key components such as automobiles and mobile phones are expected to shrink by 2% in February, which may have caused losses of US$50 billion to other countries or industries. Among the 13 industries analyzed in the report, the textile and apparel industry will lose more than 1.5 billion US dollars (approximately RMB 10.4 billion).
Specifically, the EU was the most affected in this industry, with a loss of US$538 million. Vietnam and Turkey, which have concentrated manufacturing industries, followed closely, followed by Hong Kong and Taiwan. The textile and apparel industry in the United States lost US$80 million.
Alessandro Nicita, international economist at the United Nations Conference on Trade and Development, said in an interview with Women’s Wear Daily that the reason why the EU’s textile and apparel industry has been greatly affected is because Italy and France It has maintained close cooperative relations with Chinese suppliers such as Spain and other EU member states.
He pointed out that China is an important supplier of intermediate products such as yarn, fabrics, zippers, buttons and other accessories in the textile and apparel industry. According to data from the National Bureau of Statistics, in February this year, China’s manufacturing purchasing managers index (PMI) fell 14.3 percentage points from the previous month to 35.7%, the lowest since statistics were collected.
In a previous interview with Liu Xuezhi, senior macro analyst at the Bank of Communications Financial Research Center, he said that the impact of the epidemic on the Chinese economy even exceeded the 2008 global financial crisis. The previous record low for the official manufacturing PMI was in November 2008, which was 38.8%.
“During the 2008 global financial crisis, only export-oriented enterprises in some coastal areas were greatly affected. This epidemic has national characteristics, resulting in suspension of production, work, school and residents. Life has come to a halt, and the impact is nationwide and comprehensive,” he said.
In China’s textile and garment industry, how to promote the full resumption of work as soon as possible while ensuring safety is also one of the most important issues for companies in February and March.
The difficulty in resuming work is mainly due to the lack of certain supply chain links, or the temporary failure to obtain the government’s permission to resume work, resulting in the inability to fully resume work. Also, workers cannot all arrive due to traffic control. These obstacles will cause the company’s subsequent marketing plans to be postponed or canceled.
According to the production cycle of the clothing industry, most companies have currently completed the production of spring and summer clothing. In February and March, the offline retail industry was almost shut down due to the epidemic, resulting in a large number of unsalable goods. If they cannot resume work in time, almost all domestic garment companies will face a chaotic situation of low revenue in the first half of the year and insufficient sales in the second half of the year.
China has suspended large-scale production due to the epidemic, and China’s intermediary traders account for one-fifth of the world’s supply. In a short period of time, other countries will not be able to find other companies and companies that can replace China’s supplies. area. Today’s resumption of work and production is gradually returning to normal, and logistics has returned to normal. However, as the epidemic spreads abroad, some foreign countries have banned the import and export of products. If supply and demand cannot be alleviated in the short term, the global impact will be even greater! </p
