What Will Be The Future Development Of The Textile And Garment Industry?

The infection of the new coronavirus has a great impact on textile and garment enterprises. Due to the multiple factors such as transportation, logistics, prevention and control, workers, etc., the situation of garment factory resumption is as follows:

On the 10-13 day of February, the industrial cluster working committee carried out a special investigation on the epidemic situation in the pilot areas of the textile and garment industry cluster in China, and received 152 valid questionnaires from the pilot areas of industrial clusters.

As at 20:00 on February 13th, there are 46 pilot areas which are expected to start before the end of February, accounting for about 30%. In addition, 30% of the cases should be monitored according to the progress of the epidemic. It is estimated that by the end of February, about 38% of the pilot areas will be able to restore capacity to 20%-50%; 22% of them can be restored to 50%-70%; with a more optimistic estimate that only 70% of the 13 pilot areas can be recovered, accounting for 8.55%.

From the first quarter of the main business income, compared with the same period last year, it is expected to reduce about 30%, accounting for 38.82%; 50% or less, accounting for 31.58%; reduce more than 70%, accounting for 19.74%. From the first quarter profit situation, compared with the previous year, 28.29% of the pilot areas will drop by more than 70%; 33.55% of the pilot areas will drop by about 50%; 24.34% of the pilot areas will be reduced by about 30%. The drop in profit is less than 10%, only 11.18%.

According to the survey, 58 of the 152 industrial clusters are mainly foreign trade, accounting for 38.16%. Among them, 43 industrial cluster pilot areas have annual sales of less than 20 billion yuan, accounting for 74.14%; the number of employees in the pilot area is generally below 50 thousand. The United States, the European Union and the Japanese market are also the regular main market of these industrial clusters.

Judging from the sales situation in the first quarter, 36.84% of the pilot areas are expected to drop by 30% over the previous year, and 31.58% of the pilot areas are expected to drop by 50% over the previous year, and 29.61% of the pilot areas are expected to fall by 70% over the previous year.

Up to February 13th, the provincial governments of 144 industrial cluster pilot areas have issued relevant policies to support the development of SMEs affected by the epidemic, accounting for 94.74%, and 5.26% of the provincial governments at the provincial level have yet to have corresponding support policies.

This epidemic brings the most important deep reflection to many production enterprises. Is it possible for an enterprise to be unaffected when the epidemic is coming? In the final analysis, the business structure of business or sales channel is too single, which is limited to traditional offline channels, single market and order business. Without structural layout in advance, business management is highly vulnerable.

The sudden outbreak has made many small and medium-sized enterprises lacking cash flow and risk resistance difficult and greatly improved their sense of crisis and crisis. Even more enterprises have thought from the strategic level how to better resist risks and make strategic plans.