Suspension Of Orders, Supply Chain Shuffling, Textile And Foreign Trade Enterprises How To Continue?

Under the epidemic, how is the progress of textile and garment production resuming? What is the trend of manufacturing transformation? What is the impact of the current and future foreign trade? And how should we take care of future consumption trends?

As a record player and lookout for the industry, the textile and clothing Weekly has opened an interactive interview column for "war epidemic reception hall". It invited entrepreneurs, experts and scholars to take part in the new difficulties and changes in the industry under the new crown pneumonia epidemic situation. With the export, consumption, production and other chapters, it will grasp the current situation with the industry readers and explore the way of development.

Guests during the current interview:

Ye Min, general manager of Hangzhou Zhuo Da dyeing and finishing Co., Ltd.

Weng lie, general manager of Ningbo high Textile Technology Co., Ltd.

Xie Zhenbin, sales manager of Hebei Yu Teng Cashmere Products Co., Ltd.

Host:

Hong Tao, reporter of textile and clothing weekly

TA Weekly:

"The three cart is the hardest part of foreign trade." "Is there any industry worse than foreign trade in 2020?" "No fall is success", "foreign trade market is completely flameout"... Recently, foreign trade people often laugh at themselves in such a way. Although it is a joke, it reflects the difficulties faced by the entire foreign trade. With the continuation of the international epidemic situation, many countries have closed down, closed the border and closed the city, and a large number of cross-border transport have been stagnant. This brings great challenges to China's textile and foreign trade enterprises. Please talk about the current operation of enterprises. What are the difficulties and pressures?

Ye Min:

Zhuo Da dyeing and finishing has always adhered to the development of "walking on two legs" in combination with foreign trade, and has always insisted on its unique sales rule. Domestic sales accounted for 60% in the first half of the year, 40% for export, 40% for domestic sales in the second half and 60% for exports.

The spread of the new crown pneumonia epidemic in early 2020 disrupted all the arrangements and plans of the company. To this end, the company actively adopted strategies to strengthen response measures, efforts to prevent and control epidemic situation, and ensure enterprise safety in production. In 2020, the domestic epidemic was serious. The company focused on expanding its foreign trade business. With the stable domestic epidemic and the outbreak of foreign epidemic, the first batch of European and American orders were cancelled in early April, and foreign trade orders in Africa, South America and other countries were cancelled. So far, the company's foreign trade business is at a standstill stage, but it is worth noting that the domestic sales of the company began to recover one after another, and now it has been restored to about 7-8.

Xie Zhenbin:

As the first batch of redevelopment enterprises in the Hebei Economic Development Zone, Yu Teng cashmere has encountered many difficulties at the beginning of its resumption and resumption of production. As many skilled workers live in the field, the rate of entry has become one of the key factors that impede the resumption of normal production.

In terms of foreign trade, the main export country of the company is Italy. At present, the export business is in a pause stage. Of course, the company also faces orders to cancel, suspend and suspend production after the request. The cancellation and suspension of orders have a great impact on enterprises. On the one hand, the company actively takes effective measures to deal with it, focuses on increasing visits to domestic customers, and is committed to developing the domestic market; on the other hand, it is more conservative and tries to communicate with customers to ensure safety in production and sales.

Weng Lei:

Ningbo high degree Textile Technology Co., Ltd. is a clothing and trade company specializing in the European and American markets. At present, the operation of enterprises is in a semi shutdown state, just like the idle state of automobiles.

At present, the main difficulties facing the company are: the demand for foreign countries has been greatly reduced due to the closing of the stores. A large number of European and American customers have been cancellations, delays and subtraction. Even at present, orders still have the risk of cancellation and extension.

TA Weekly:

In order to actively "save themselves", many foreign trade enterprises have begun to take the way of export to domestic sales, which may be a new opportunity for some foreign trade enterprises in the industry. However, some people think that after all, there are two markets at home and abroad, and it is very difficult to turn quickly to domestic sales. What do you think?

Ye Min:

At this stage, it is very difficult for foreign trade enterprises to turn to domestic sales, but to some extent, it is also important to see whether the products of the company have market in China. If there is a certain market for foreign trade products in the country, then the difficulty of domestic sales is relatively small; if foreign trade products are basically not in the market at home, then the difficulty of domestic sales is greater.

Xie Zhenbin:

In the strategy of cashmere and cashmere yarn, the company has been developing in parallel with domestic sales and foreign trade. However, there are some differences between the two in terms of goods and customers.

At present, the domestic epidemic situation has been effectively controlled. The company is also trying to increase the layout of domestic sales, maintain close communication with customers, and increase the pace of new product development.

In addition, the company has three locations in Zhejiang, Tongxiang, Hongkong and Guangdong Shenzhen. In the future, the three regions will be fully centered and the domestic market will be mobilized. Due to the impact of domestic epidemic, the current domestic sales situation has not reached the company's expectations. However, with the gradual control of domestic epidemic situation, the domestic market is still the most potential market in the next 4 months.

Weng Lei:

I think export to domestic sales is the long-term direction of transformation of enterprises, and also the key to reduce risk and healthy development of enterprises, but it can not serve as a "good medicine" for short-term treatment under the outbreak crisis.

TA Weekly:

There are also claims that enterprises will exchange for efficiency at the cost of a stable supply chain. It is expected that profitability will decline but supply stability will increase. What do you think of this?

Ye Min:

I don't think so. As for the textile industry, with the gradual development of Southeast Asia and other countries, most of the domestic textile enterprises have an average annual business of only 80%. This is a relatively good situation, for example, domestic and foreign trade accounts for 50% of the total. For the current situation, foreign trade is stagnant, and only about 4-5 of the business remains normal. Therefore, at present, domestic production capacity is in a serious excess stage, and supply is totally greater than demand. If domestic textile enterprises provide market demand for foreign trade enterprises, it also means that some enterprises will be faced with the risk of bankruptcy. Therefore, absolute "enterprise profitability decline but supply stability will rise".

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Xie Zhenbin:

I think this is inevitable. Facing the epidemic situation, every link of the enterprise will lose more or less. This is inevitable. In such a loss situation, as long as we are in it, we will think about how to improve efficiency and reduce costs.

Yu Teng cashmere is no exception, the company has been committed to creating a vertical industry chain of cashmere industry, and strategic partners to achieve the sharing of each link in the supply chain. During the epidemic period, the greatest impact on enterprises should be capital flow, cash flow and comprehensive strength. Maybe some enterprises will be eliminated. This epidemic situation can be regarded as a big shuffle for the whole supply chain of garment industry, and it can also be understood as the reconstruction of supply chain.

TA Weekly:

As one of the "worst hit areas" under the impact of the epidemic, many textile foreign trade enterprises are facing the test of life and death. How do you reduce costs and increase efficiency at this stage?

Ye Min:

Reducing cost and increasing efficiency has always been a very important task for enterprises. At this stage, there are different ways to reduce costs and increase efficiency. One is to ensure that employees can work; the two is to ensure that employees have jobs and do not lay off workers as much as possible, so that employees can have income. At this stage, the company only considers that it can feed workers, and the immediate profits will not be considered for the time being.

Xie Zhenbin:

Early layout is very important. Even if there is no epidemic, reducing the cost and increasing efficiency has always been the constant pursuit of enterprises. The spinning factory and carding plant of the company were newly built in the year before, and the equipment was also reconstructed at the same time. In order to ensure the quality of the products and improve the production efficiency, the automation system was introduced, and the automatic dye system was introduced.

Weng Lei:

It is very important for an enterprise to save money and survive, and to do well in internal work. Both product development, enterprise management and development strategy should be perfected in the process of enterprise development, so as to conform to the current development law.

TA Weekly:

In view of the current situation, what do you think will be the overall situation of enterprises in the second half?

Ye Min:

At present, domestic epidemic prevention and control is very good. The domestic outbreak from the outbreak to the resumption of production and then to stable operation now, probably for 5 months or so. The epidemic situation abroad has not yet been well controlled, and the situation has not yet been well controlled in foreign countries. It does not exclude the possibility of two or three outbreaks to some extent.

Therefore, even if the epidemic situation improves abroad, it will take about half a year. At present, I do not have any hope for foreign markets. The company will focus on the domestic market in the second half of the year. Of course, we hope that the foreign epidemic will be effectively controlled as soon as possible. If the epidemic situation is controlled in August, the order will start in about 11-12 months, of course, this is the ideal state.

Xie Zhenbin:

At this stage, enterprises have been producing orders in the fourth quarter of 2019, before the Spring Festival, and will be ordered to break up at the end of May. Of course, many enterprises consider exporting to domestic sales, but if there is no foundation to re open the domestic market, they are also faced with great challenges such as capital and manpower, and there is also the risk of time delay.

In addition, the development of foreign epidemic can be predicted at present, and it will not return to the previous situation in a short time. The impact of the epidemic on the production and trade enterprises will be delayed.

Weng Lei:

Under the impact of the epidemic, there will be more complicated situations in the second half or even longer period. The responsible person must keep the bottom line thinking, sober minded and conservative attitude. If the resumption of the market in the European and American markets or the serious consequences of the second spread of the epidemic will result in more and more customers in Europe and the United States, the payment delay, payment difficulties, discounts and even bankruptcy will be paid enough attention to.

Unable to hold oneself back

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TA Weekly:

What suggestions and appeals do you have for the industry and enterprises?

Ye Min:

It is hoped that the government can support enterprises in tax policy, and hope that the association can provide real and effective data for enterprises, so that enterprises can find new directions for development. At the same time, it is also hoped that enterprises can do something meaningful, retain staff, improve production efficiency and labor efficiency.

Xie Zhenbin:

The cashmere industry itself is a very fractionize industry. It is also a dominant industry in China. It is hoped that enterprises will be able to warm up and tide over difficulties together.

Weng Lei:

At this stage, enterprises need to do well in products and services, adhere to the principle of "people without me", people who have me, and wait for the real recovery of the market.

TA Weekly:

So far, many enterprises have found a "machine" in the "danger", and have started the road of self rescue. But most enterprises hope to rely on the global war "epidemic" as soon as possible. The epidemic is a reshuffle for our industry, and it needs to be hardened by itself. The important prescription for enterprises to cope with the epidemic is to enhance their immunity and improve the ability of "Endurance". I believe that with the improvement of international epidemic prevention and control, foreign trade will also gradually resume.