Countermeasures For Epidemic Situation: Influence And Countermeasures Of Jiangsu Textile And Garment Enterprises

At present, the CPC Central Committee and the State Council attach great importance to the impact of the epidemic on freight transport and material supply guarantee, and are trying to properly solve the problem of freight logistics. This is not only a very important link in winning the war of epidemic prevention and control, but also the basic guarantee for implementing the "opinions of the CPC Central Committee and the State Council on accelerating the construction of a unified national market".

Jiangsu is a big textile and garment province. In order to fully understand the impact of the recent epidemic of new crown pneumonia on the textile and garment industry in Jiangsu Province, provide suggestions and decision-making basis for the government departments to support the development of the industry, and promote the steady development of the industry economy, recently, Jiangsu Garment Association organized enterprises to carry out a questionnaire survey on the impact of the epidemic on Jiangsu textile and garment enterprises.

This survey takes textile and garment enterprises in Jiangsu Province as the object of investigation. Jiangsu Clothing Association conducted an online survey on April 14, 2022. Enterprises responded positively. As of April 22, 199 valid questionnaires were received, including 52 key textile enterprises, 143 clothing and apparel enterprises and 4 textile and garment equipment enterprises.

The impact of the recent epidemic situation on textile enterprises in Jiangsu Province

According to the survey, 25.13% of the enterprises' production and operation "decreased by more than 50%, 18.09% by 30-50%, 32.66% by 20-30%, 22.61% by less than 20% and 1.51% with no obvious impact. The impact of the epidemic on the production and operation of enterprises should be paid attention to.

The main difficulties faced by enterprises due to the epidemic situation

The survey shows that among all the options, the top three are "high cost of production and operation" (73.37%), "market order reduction" (66.83%) and "abnormal production and operation" (65.33%), with more than half of the choices. The others are as follows: "it is difficult to collect accounts receivable", "enterprises need to pay liquidated damages due to failure to fulfill the transaction contract on time", "financing difficulties increase", etc. Specifically:

(1) high production and operation costs and heavy burden on enterprises

It is mainly reflected in the following aspects: the epidemic situation has hindered the transportation and logistics, the raw and auxiliary materials, equipment and materials can not come in, the products can not go out, the freight increases as high as 20% ~ 30% or even more, and the prices of raw and auxiliary materials are also very obvious; The labor cost is increasing year by year, and the rigid expenditure such as social security is very large; Because of the high cost of rent, many shops are not in good condition and even closed; The cost of enterprise epidemic prevention increased.

(2) market orders decrease

Foreign market: due to logistics transportation obstruction, the sample clothes and samples delivered to customers can not be delivered in time, and customers can not confirm in time, which directly affects the order of large goods. Surface auxiliary materials can not come, resulting in order interruption. The goods can't be delivered, and the products are overstocked in the warehouse. Customers are very worried about the delivery time of orders, and subsequent orders are also affected. Therefore, a large number of foreign customers stop placing orders and wait and see, and many orders will be transferred to Southeast Asia and other regions.

Domestic market: due to the epidemic situation, orders can't be fulfilled on time, foreign customers can't normally come to the enterprise for investigation, business personnel can't normally carry out sales activities, and customer loss is serious. In terms of retail, irregular closure, shopping malls and stores were unable to operate normally, the flow of people in business circles dropped sharply, customers did not dare to invest easily, and shop decoration was hindered. Affected by the epidemic situation, the frequency of customers going out for shopping decreased, the wage level dropped, the consumption demand decreased, and the domestic market was depressed. Online sales cannot deliver goods on time due to logistics reasons, resulting in a large number of chargebacks.

(3) unable to operate normally

During the outbreak of the epidemic, due to containment control, employees could not normally arrive at their posts, the logistics was not smooth, the transportation of raw and auxiliary materials and finished products had problems, and the production and operation of enterprises were basically in a state of pause or semi pause.

The impact of epidemic situation on enterprise operation funds

There are three major aspects of the impact of the outbreak on enterprises' financing and operation

84.92% of the enterprises said that their operating income decreased and their working capital was tight. Due to the abnormal production and operation of most enterprises, the order delivery is delayed, the order quantity is reduced, the online and offline sales are hindered, and there is a great risk of capital withdrawal;

20.6% of the enterprises were unable to repay the loans and other debts in time, resulting in increased capital pressure;

The short-term financing ability of 12.56% of enterprises decreased;

10.05% of enterprises' financing demand decreased;

6.53% of the enterprises are faced with the risk of being withdrawn or cut off loans.

The impact of the epidemic on the annual business income of enterprises

Expected impact of epidemic situation on annual employment of enterprises

Through domestic e-commerce platform and live broadcast platform

Sales

According to the survey, most clothing enterprises carry out sales through platforms such as tmall, Jingdong, vipshop, pinduoduo, wechat mall and tremor. Among them, short video and live broadcast have the advantages of fast dissemination of information and high public acceptance. Through live broadcasting, product styles and effects are comprehensively displayed. Compared with the plane pictures of online platforms, live broadcasting is more intuitive and interactive, The effect is better. But some pure foreign trade export enterprises, textile semi-finished products, auxiliary materials production enterprises are not suitable for online sales.

At present, the main problems reflected by online sales enterprises are: (1) the operation cost of e-commerce platform is high; (2) The price is serious; (3) Due to the strict logistics control of the epidemic, the order could not be fulfilled on time, and the refund was serious.

Prediction of the next development trend of enterprises and industries

According to the survey:

52% of the enterprises said that the current development of enterprises is mainly "stability" and "persistence", to stabilize customers and employees, and to develop both export and domestic markets.

37.5% of the enterprises said that they were facing many difficulties and the situation was not optimistic. Affected by the epidemic situation, rising costs and declining market demand, production and operation were difficult and the losses were serious. Foreign alternative production resources have recovered, overseas brands have increased concerns about China's supply chain, orders have accelerated to transfer to overseas, and enterprises are lack of confidence.

5% of them are confident in the future for the time being. It is believed that "after the epidemic situation is stable, the market will recover", "China's textile and clothing industry will have stable production capacity, complete supply chain, skilled employees, and good industry development prospects", "adhere to high-quality development, adhere to their own specialty and characteristics, and make high-end and high-quality personalized products, the market will be good".

In view of the impact of the epidemic, enterprises hope that the government will take

Assistance measures

According to the survey, among all the options, the top five are "ensuring smooth logistics", "strengthening the accurate prevention and control of the epidemic situation, reducing the impact on the normal production and operation activities of enterprises", "periodically reducing the social security fee", "providing stable job subsidies", "reducing or providing subsidies such as house rent and water and electricity charges".

2. Countermeasures and suggestions on dealing with the epidemic situation to ensure smooth logistics

Ensuring the smooth flow of logistics is also an important part of fighting the "hard battle" of epidemic prevention and control. Adequate and timely material supply is not only the "lifeline" of stabilizing people's livelihood and enterprise development, but also related to the overall situation of "two hands" of epidemic prevention and control and economic development. The government has issued relevant policies to strive to ensure that the industrial chain and supply chain do not fall off the line.

Strengthen the effective and accurate prevention and control of the epidemic situation

In order to reduce the impact on the normal production and business activities of enterprises, it is suggested that the relevant epidemic prevention departments should provide door-to-door nucleic acid detection services for the units that should be inspected to ensure the normal operation of enterprises, and encourage the recovery of normal exchanges in areas with low risk.

Further implement the tax reduction and fee reduction policy

In view of the actual difficulties faced by enterprises, it is hoped that the government and relevant departments can give phased social security relief and other measures to labor-intensive textile and garment enterprises, and timely launch tax reduction and fee reduction plans, such as tax and fee delay declaration or appropriate reduction and exemption, so as to reduce the burden and pressure caused by the epidemic situation and help enterprises tide over difficulties, Otherwise, many enterprises will die out. At the same time, the policy of benefiting enterprises and benefiting the people should also take into account Enterprises above Designated Size, which are the "ballast stone" of economic stability.

Increase financial support for difficult enterprises

In view of the severe situation of enterprises returning to work and production and export, the biggest difficulty of some enterprises is that the capital turnover is difficult after the production cycle is prolonged, the lack of working capital and the need for bank credit support. We hope that we can better implement the financial support policy of anti epidemic and poverty relief, especially for enterprises with orders and market difficulties.

Provide enterprise stable job subsidy, employee vocational skill training subsidy, etc

Textile and garment industry is a traditional labor-intensive enterprise, which absorbs a large number of social employees and plays a positive role in social stability. I hope that the government can formulate special policies conducive to the development of the industry, boost the development of enterprises, and expand the popularity and market share of Jiangsu textile and clothing products.

Improve the level of flexible manufacturing and intelligent manufacturing in the industry

Enterprises should further increase the application of digital technology, network technology and automation technology in the industry, improve the level of flexible manufacturing and intelligent manufacturing, and promote the industry to climb to the middle and high end of the international value chain. In addition, clothing enterprises should cooperate with supply chain supporting enterprises to jointly improve product development capability, inject development impetus for garment enterprises with flexible, rapid and efficient supply system, enhance enterprise anti risk ability, accelerate online and offline integrated development, enhance domestic and foreign market development and development ability, and accelerate the construction of collaborative innovation system of digital and network linkage development.

Strengthen innovation and enhance product competitiveness

Enterprises should strive to improve the adaptability of brands and products to the market and enhance the competitiveness of products from the aspects of scientific and technological innovation, product innovation, design innovation, management innovation and service innovation. At the same time, they should strengthen the construction of enterprise brand culture, promote and lead the development of textile and clothing industry, and accelerate the innovation leading, cultural creativity, sharing economy, modern supply chain, etc On the other hand, we should create a new industry value chain and promote the development of high-quality clothing industry.