The coronavirus pneumonia outbreak has a huge impact on the textile and apparel industry
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The outbreak of coronavirus-infected pneumonia has a huge impact on the textile and apparel industry
With serious inventory accumulation, there is no timetable for employees to resume work
China Finance News on February 8 (Reporter Hu Jingling) “In previous years, we started work on the sixth day of the Lunar New Year, but now I am afraid that we may not be able to do it after the Lantern Festival. Resumption of work. The basic elements of resumption of work such as the procurement of raw materials and accessories, outsourcing, logistics, organization of production, etc. are unknown. However, it is foreseeable that due to the impact of this epidemic, millions of turnovers have been lost.” Shenzhen clothing brand Xu Qiaoyun, the person in charge of “Post-Concept”, spoke frankly to China.com’s financial reporters.
Since the large-scale spread of the new coronavirus, Guangdong Province has become the province with the most confirmed cases of the virus besides Hubei. As of 12:00 on February 7, Guangdong Province had reported a total of 1,034 confirmed cases of pneumonia caused by the new coronavirus infection. Due to the extension of the Spring Festival holiday, production and work suspensions, logistics and sales have been hindered, and the operating performance of most industries has been affected, including the textile and garment industry. Not only are frontline medical staff lacking masks and other necessary protective equipment, but managers of clothing companies are also struggling to prepare masks for employees who are returning to work. In addition, clothing companies also look forward to an orderly management system to welcome the resumption of work.
Song Qinghui, a well-known economist, analyzed to China Net Financial Reporter: “During the Spring Festival, it should be the peak season for offline consumption throughout the year, which is conducive to increasing the profit level of textile and clothing companies. However, due to the new coronavirus infection pneumonia The outbreak of the epidemic has had a huge impact on textile and garment companies, directly leading to a rapid decline in terminal consumption and serious inventory accumulation.”
Pang Chaoran, associate researcher at the International Trade and Economic Cooperation Research Institute of the Ministry of Commerce, told China Net Financial reporter that this The epidemic will have a certain impact on the industry structure, and companies with relatively weak technical and management capabilities face the risk of exiting the market.
Chongqing Xinsheng sewing machine is responsible for the collection and transportation of protective clothing production equipment to fight the new coronavirus
Sales are at a semi-stagnant state
China Net Finance reporter learned from the relevant person in charge of Rabbi Jinfa that due to the obstruction of logistics and rework, the epidemic has affected the normal operation of the company’s offline stores across the country and some OEM factories. The start of construction will have some impact. The epidemic is expected to reduce the company’s first-quarter physical store revenue and net profit in the short term.
Xu Qiaoyun told China Net Financial Reporter: “Currently, the fabric market is closed, most logistics companies have also stopped, and our sales are at a semi-stagnant state. At this time in previous years, the whole company was preparing for the Spring and Summer Fashion Week and Seize the peak of online traffic in the New Year. This year, due to the impact of the epidemic, customers have applied for returns of the products sold, repeatedly, and everyone knows the reason: unable to be shipped! It is foreseeable that affected by the epidemic , millions of sales are gone.”
Pang Chaoran analyzed that from a sales perspective, the Spring Festival is the peak sales season for brand clothing retail products, and the sudden outbreak of the epidemic has led to insufficient foot traffic in major shopping malls. The decline in total consumption has seriously affected the sales revenue of clothing companies. Among them, direct store companies have suffered more serious losses, mainly due to store rent and sales staff salary expenses. Companies that rely on dealers need to share their losses with them. Online retail sales of clothing products were affected by logistics, and holiday revenue declined. In terms of exports, the export business has been affected mainly by the strict inspection and quarantine imposed by some countries (regions) on my country’s export commodities.
In addition, from the production side, the resumption of work of enterprises in various links of the industrial chain has been delayed, the supply of products in intermediate links has fluctuated greatly, and the prices of some raw materials have increased. Fixed expenses including employee wages during the delayed start of factories need to be added to the cost. , resulting in clothing companies experiencing squeeze from both production and sales.
Chongqing Litai Group was ordered to resume work on February 8th (click on this text to enter Litai recruitment information)
It is difficult for employees to return to work without masks and other protective equipment
It is understood that the resumption of work in Guangdong Province will be no earlier than 24:00 on February 9. Regarding the arrangements for resumption of work, Xu Qiaoyun said that currently the industrial zone where we are located has implemented entry and exit control measures and basically no entry is allowed. In principle, you can resume work on the 10th, but you need to report 5 days in advance. We called the sub-district office, and the sub-district office responded that we needed to report to the party committee of the industrial zone, but there was no contact information. The industrial park is currently closed, and I don’t know who to report to.
In addition, according to the document requirements, companies need to provide masks and disinfection supplies by themselves. Xu Qiaoyun said that the company cannot snap up supplies at all. Even so, we still inform all employees of the company who are returning to their hometowns for the New Year (even those who are not from Hubei) not to return to Shenzhen for the time being; because once they return to Shenzhen, they will need to take public transportation to travel, and we do not want employees to take this risk. When the epidemic situation improves, even if employees come back in the future, we will require them to be quarantined at home for 14 days, regardless of whether they come from areas with severe epidemics. However, frankly speaking, the company does not have the ability to carry it for too long.��I pray that the epidemic will pass as soon as possible.
Xu Qiaoyun told China Net Financial Reporter: “I hope there will be clear arrangements, guidance, assistance and undifferentiated management and coordination for resumption of work. Enterprises can conduct self-supervision and management, but they hope to provide us with procurement channels for protective materials, or Distribute directly to businesses.”
The relevant person in charge of Rabbi Jinfa said that according to the notice, the company will resume work on February 10, and will prioritize some disinfection and sterilization products for infants and children that are helpful for epidemic prevention and control (such as: baby hand washing bubbles, hand cleaning bubbles etc.) R&D, procurement and production personnel will arrive in advance. However, due to the current epidemic situation, the company urgently needs to provide protective equipment for employees and contact various resources to try to solve the problem of employee masks. However, it hopes to receive key support from the government to ensure epidemic prevention and control and employee health and safety after the start of work. “There is no way to reduce losses, but we will not deal with it through layoffs”
Chongqing Xinsheng Needlework Shop Zhou Long and leaders of Wansheng protective clothing manufacturer took a group photo in the sterile workshop
Guangdong’s textile and garment industry under the epidemic: serious inventory accumulation, employees’ return to work is far away
“We can’t find a way to reduce losses now because the entire industry chain is at a standstill. The basic elements of resumption of work such as the procurement of raw materials and accessories, outsourcing, logistics, and organization of production are unknown, but it is certain , we will not respond to losses through layoffs.” Xu Qiaoyun is miserable about how to reduce losses, and hopes to get loose policies and corresponding standards to give companies and employees the choice to face the difficult times of the epidemic together. There must be no one-size-fits-all approach and let companies and workers coordinate on their own.
Rabbi Jin Jin said that no matter how the epidemic develops, the company will not lay off employees because of this, and employees will be paid wages in accordance with relevant national regulations during the epidemic. At the same time, it is recommended that the government appropriately refund unemployment insurance premiums and defer the payment of social insurance premiums to insured companies that do not lay off employees or reduce layoffs during the epidemic; in order to reduce the burden on enterprises, it is recommended that the government appropriately reduce or reduce corporate taxes and defer tax payments; it is recommended that the government increase Provide financial support to reduce corporate financing costs and provide guaranteed financial services; it is recommended that the association collect member needs and provide feedback to the government.
Huang Jianfei, the general manager of an investment institution, analyzed to a financial reporter from China Net that the future response measures of the textile and garment industry should be to strive for more cash flow, including some support from the government or bank channels for more credit. . In addition, in the future production process, we will try to reduce manual links as much as possible and instead focus on machine production. In terms of the ratio of offline sales to online sales, it may be necessary to strengthen online marketing and sales capabilities in the future to withstand some emergencies. In addition, textile and apparel companies donate some of their inventory of clothing to those in need in epidemic areas, which can not only improve the company’s brand influence and reputation, but also contribute to the epidemic.
Regarding the future development of the textile and apparel industry, Pang Chaoran said that judging from the situation in various countries after the impact of the epidemic, consumer products including clothing will usher in a period of compensatory consumption. The consumer demand suppressed during the epidemic prevention and control period will be released intensively after the epidemic is basically over. If the epidemic ends as soon as possible, the spring clothing inventory of some manufacturers can still be digested. However, in the future, companies need to further enhance their value chain status, do a good job in cost management, quality improvement and brand building, and adapt to the needs of domestic consumption upgrades. At the same time, they must also actively explore international markets and share production costs and through diversified market strategies. Various sudden risk impacts.
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