Foreign Trade Pressure Continues Throughout The Two Quarter. What Should Knitwear Do?

Since late March, due to the global spread of the new crown pneumonia epidemic, many countries' disruptions in airline services and logistics, and the weakening demand for retail outlets have resulted in the cancellation of a large number of overseas orders or delayed delivery, which poses severe challenges to the foreign trade enterprises of the knitting industry. Compared to the supply side can not resume production in a timely manner, the cancellation of orders from the external demand side is more severe for the knitting export enterprises.

Statistics from the General Administration of Customs show that in the first quarter of this year, the total export volume of textiles and clothing totaled 45 billion 264 million US dollars, down 17.7% from the same period last year. Among them, the total export of textiles was 22 billion 694 million US dollars, down 14.6% compared with the same period last year, and the total export volume of clothing was 22 billion 570 million US dollars, down 20.6% compared with the same period last year.

Economists believe that the economic pressure caused by the spread of the epidemic will only be released in the middle of 3. Therefore, looking forward to the two quarter, the export of textile and other industries with high dependence on external demand will still face great pressure.

Foreign trade data fully reflect the current situation of textile and clothing export trade under the influence of epidemics. How to cope with the huge impact of overseas epidemic? People in the industry have said that enterprises need to launch a "double upgrade" of management and industry in order to get out of the "cold winter" of the epidemic.

Challenge: foreign trade supply chain blocked

"In February, it was unable to start work, and export orders were cancelled after the resumption of work in early March. There is basically no income this year. " Yao Li, chairman of Fujian Sanyuan Knitting Co. Ltd., has been feeling pressure for this year's situation, and has been in business for 20 years. Fujian Sanyuan Knitting Co., Ltd. has more than 80 warping machines and lace machines. The lace and fabrics produced are not only sold to Guangdong, Zhejiang, Sichuan and other places, but also sell well in the Middle East, Southeast Asia and other overseas markets. At the moment, when workers return to work, the start-up rate is less than 70%, production costs rise, and profits are almost gone.

Like Sanyuan knitting, the new Boya knitting company is also facing the same predicament. The company specializes in professional production of lace, lace fabrics and other products. The products exported to Europe and the United States account for 3. "Now the days are tough, the overseas orders are slow, some are three or four months, and some are even longer." Chen Wenliang, director of the company.

Affected by overseas epidemic, problems such as rising international logistics costs, ineffective trading timeliness, disruptions in the supply chain, default risks in existing orders, default in offshore clients and rising risk of bankruptcy have also concentrated on the pressure of SMEs in the knitting industry.

Facing the new situation of internationalization of the epidemic, it is very important for knitting enterprises to take the initiative to implement foreign trade to domestic sales and expand domestic demand strategy. Industry experts said that in the field of stable foreign trade and stable enterprises, three points should be paid more attention to in the future development: first, we should base ourselves on the endogenous driving force to enhance and release the development, speed up the upgrading of product grades, make differentiated products based on the market, and make preparations for the improvement of the order situation; and two, make use of the advantages of the resources integration ability of enterprises themselves to solve the matching of supply and demand information and industrial supply chain in a timely manner. In order to promote the industrial chain through the open sharing concept, the three is to integrate the Internet technology and the corresponding platform in a timely manner, open up new channels for online sales, meet the diversified needs of consumers, and do well in the risk control and management of enterprises.

Grab the market: smart equipment as a "surprise soldier"

A yarn goes in and a garment comes out. Such production "magic" is being staged in the workshop of the company. Since April, the company's newly purchased 60 sets of all imported one garment machines have been fully opened up to speed up production. After the seamless garments were downloaded, they were sent to the business customers in all parts of the country. In most sweater enterprises, due to the impact of the epidemic can not receive orders, now has more than 30 years of history of the old sweater enterprise, but the order of Vinci reached the end of the year, this year's output is expected to rise by 30%.

In the Tongxiang digital economic town, 2 kilometers away from the wake of the company, the digital workshop of the wake is being renovated. It is expected to be formally put into operation in the year. This will also be the first 5G digital standard workshop in Zhejiang sweater industry in the Tongxiang. In the future, it can not only realize the whole visual production of customers, but also allow customers to directly produce the equipment after placing orders, thus greatly reducing the production cycle. To achieve flexible production in the true sense.

Wu Tianxiang, chairman of the Zhejiang victory Clothing Co., Ltd., said that benefiting from the application of one garment technology, the production of wake has not been affected by the employment problem after the outbreak. The rapid production mode of the digital workshop has met the requirements of the electricity supplier. The online supply business has increased significantly. It is predicted that the company's online business will exceed 7 this year, an increase of nearly two over the previous year. Times. "The low price of the sweater industry is often the peak of infrastructure construction, so that no matter how the market changes, wicksey can get a share of the market." Wu Tianxiang said.

The domestic epidemic is gradually subsiding, and Zhejiang Saint Nell apparel Co., Ltd. is also planning to expand its production. "The epidemic led to the reduction of orders. We just used this time to redevelop the production line, improve automation and speed up the process of machine replacement, which not only alleviated recruitment difficulties, but also increased production capacity." Xia Liangen, chairman of Zhejiang St. Nair Garments Co., Ltd., gave many plans to upgrade the intelligent production line recently.

Xia Liangen, a veteran knitwear, quickly changed his mind and put the focus of new product development on the domestic market. "This year, many enterprises that originally made foreign trade began to turn to domestic sales, and have taken aim at the mature sweater market in recent years. What they need most is to upgrade the intelligent production line."

Xia Liangen said that one garment requires producers to have certain R & D capability and higher production level, which is a big test for many production enterprises. In order to win the market with quality and word of mouth, and enhance the market competitiveness of enterprises, he invested about 20000000 yuan in purchasing a number of intelligent integrated garment machines. In order to continue to enhance the product design and R & D capability, he also spent a lot of money in attracting talents, cultivating professional, information and self media teams to minimize the impact of the epidemic on enterprises.

"Enterprises need long-term thinking, and now is the key to upgrading technology upgrading." Xia Liangen introduced that the high-speed running intelligent integrated garment machine can save 70% of the labor cost and shorten the garment cycle, so as to realize fast reverse flexible supply chain and help customers reduce inventory.

Order: new retail Exhibition

Seriously affected by the epidemic, the overall retail market of the knitting industry in the first quarter of 2020 showed a low performance, of which the physical store channel declined significantly and the online outlets increased slightly.

"In the case of foreign trade channels blocked, force online marketing has also become the common choice of knitting enterprises. Many brands are willing to explore and try such a mode, through the electronic business platform, increase product promotion efforts. Xia Liangen said that after the company resumed operation, he released a small video on the company's new products and entrepreneurial experience, and won 33 thousand people's attention. It has also attracted many buyers and department stores. Some of them have agreed to achieve business cooperation, and some have ordered clothing products.

Founded in 2015, China's leading children's wear brand, Marca, focuses on creating 0~7 year old baby clothing products. It has millions of users and 700 million yuan market share in the domestic children's wear market. After resuming work, MARKAL launched the company's full marketing strategy for the first time, reintegrating products and marketing channels with the help of the Internet platform, and actively developing new retail businesses with distributors and customers to find new business opportunities.

"In February, brand sales were down sharply, which could only be three or four of the same period last year, but sales in March were up to 80% in the same period last year. This shows that our new retail initiatives are very effective and have achieved some results. " Wu Shumin, general manager of Makale, believes that the epidemic is also an opportunity for Ma card to further think about the new mode of integrating online, offline and offline. In such a special period, the advantages of retail digital gradually appear, and also support the stable operation of the brand.

Under the current situation, the major mainstream e-commerce platforms in China are also actively launching a series of supporting projects: the Alibaba Spring Bud Plan 2020 has introduced 16 major support measures in 5 major areas: many local governments are invited to join the local industry with high quality enterprises to enter; Jingdong's social networking provider Ping Tai Beijing has launched a special foreign trade business support policy, from financial security, check-in services, and traffic volume. Support and other aspects of help, help export to domestic sales, mining new economic growth point.

"As mobile phones and the Internet become the main media of people's daily contact, cloud consumption has become the choice of more consumers. This shows that not only brand enterprises need to have the ability of full marketing and retail digitalization, but the whole industry supply chain needs to have digitalized capability. After the outbreak, it will become an important competitiveness of the industry. " Wu Shumin said.