The Overseas Orders Closed, We Need To Find Another Ways

Export encounter cold

European and American customers cancel orders

Affected by the outbreak, the pace of domestic textile enterprises to return to work is much slower than in previous years, many textile enterprises may be said to have solved the problem of personnel in place, and suffered a decline in overseas orders.

"Affected by the outbreak abroad, customers have cancelled their orders since mid-march. And those large quantities of customers, temporarily decided to delay shipment. The impact on foreign trade companies is indeed considerable." A spinning to a complete industrial chain of clothing industry owners rather reluctantly said.

"At present, domestic factories have basically resumed production, because of the delay in the resumption of work, enterprises are working overtime to order for the year before the production, busy delivery. As the epidemic continues to spread around the world, a large number of foreign trade orders have been canceled, the most troublesome is that orders have been canceled in the middle of the implementation, because the enterprise generally only charge customers about 30% deposit, far from the cost line, the enterprise losses relatively large. Many enterprises said, on the one hand is no longer easy to receive external orders, received orders were cancelled more than worth the loss; On the other hand, after receiving a small number of new orders will strive to execute as soon as possible, to avoid mid-course changes.

"Because of the outbreak, many clothing stores in Europe are closed, at least for two or three months, and even if they are open, business is not good, so all orders are suspended and some new orders may be cancelled. This happens to 80 per cent of the company's customers in Europe and the us." The head of a clothing trading company said most European and us customers were suspending or cancelling orders in large Numbers.

Compared according to the China textile newspaper reporter understanding, focused on exports of clothing and fabrics enterprises, foreign trade enterprises of the spinning back order situation faced by the enterprise is relatively less, single clients are European and American customers, most of the back for the products are exported to the European and American countries or regions FangQi, cancel the order situation is rare, but most FangQi out on fears of a global outbreak is in the process of tightening rushed orders, delivery, we hope to get the receivable.

Good internal work

We will adjust the proportion of domestic and foreign trade

In view of the recent "receding tide" overseas, many spinning enterprises involved in the export of products have said that they will adjust the proportion of domestic and foreign trade to mitigate the impact of the epidemic.

A spinning enterprise mainly for Italy, South Korea orders, said: "this year, although we haven't received temporarily cancel the order, but in the first quarter of the order amount is reduced a lot than last year, the domestic market, then we will have a good mining now domestic basic control of the epidemic, the newborn, it may be a good chance." Similarly, a colored spun yarn exports enterprises also revealed: "orders shrank by 20% last year, the current order can do at the end of April, then consider a little more than domestic trade proportion, but it has disadvantages, domestic trade customer collection than foreign trade long, most of them in 3 months or longer, so domestic trade is also bad to do, this year the situation is more enterprise survival capacity."

"The next step is to consider adjusting the import and export ratio internally." An exporter of cotton yarn from xinxiang, henan province, said it expected its orders to contract by about 30% in the first quarter from a year earlier, and that in the short term it would consider shifting its focus to China or less affected regions.

In the absence of effective control of outbreaks abroad, it is a good idea to shift the focus of business to China. Industry experts believe that in the current situation in China to effectively contain the spread of the epidemic, export enterprises might as well give due consideration to the domestic market, while maintaining their original position, the appropriate development of domestic customers.

But industry experts also warn spinning companies that the domestic market is already full and competition is fierce. In this case, spinning enterprises should pay more attention to their product quality, increase innovation, and develop differentiated and functional yarns, so as to have enough strength to win in the competition.

"The outbreak has definitely had an impact on the number of orders, and we will develop more products, provide unique quality services, meet various needs and retain customers according to the change of consumption structure." A company that mainly exports yarn to Japan and South Korea said it has not received the notice of returning the order, and the company is actively developing new products while speeding up the production of orders.

Avoid risk

Stabilize the southeast Asian market

The outbreak in foreign countries has undoubtedly increased the instability of the import and export of Chinese products and the global industrial chain. "The current overseas epidemic is still not over the peak, foreign trade enterprises are facing the dual impact of the supply chain and shrinking demand." Expert analysis way.

Since early march, a large number of clothing stores in Europe and the United States have closed for business, and the share prices of almost all clothing companies, department stores and e-commerce clothing companies have halved. The impact of the global epidemic prevention and control on the total market demand has been produced.

At present, the epidemic in southeast Asian countries affected less than the United States and Europe. Southeast Asian countries are heavily dependent on China's textile supplies of raw materials, the epidemic has been affected by a supply interruption. As Chinese companies gradually resume production, it is particularly important to protect and stabilize market share in southeast Asia.

Experts said that while spinning enterprises stick to their original position, they can properly develop domestic trade customers, but also can shift the focus of foreign trade sales to the less or no epidemic areas, to explore new overseas markets, so that enterprises will not be unable to continue because of no orders.

To avoid risks and expand the market is the reason why many spinning enterprises invest and set up factories overseas. In fact, there are a lot of spinning enterprise did the same, as has just released 2019 annual report of texhong group co., LTD., said texhong will continue to adhere to the internationalization and the development direction of industry chain vertical integration, in yarn production base outside China construction directly in the face of overseas markets, as well as in Vietnam and Nicaragua continued construction of textile dyeing triad fabrics production base, on the one hand, effectively reduce or avoid the effects of sino-us trade friction, on the other hand, through the production of vertical integration of fabrics and even lead to the overall profit margins rise and strengthen the stability of the profits, Mitigate the impact of raw material price fluctuations.