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Recently, the second wave of foreign epidemics has become so fierce that several European countries have once again announced the news of "closing the country". Following this, many countries have decided to cancel the Christmas market due to epidemic prevention considerations.
It is understood that the Christmas market usually starts in late November and ends on December 24 each year. There are no activities and crowds are not allowed to gather, which means that the consumption level of the Christmas season is greatly reduced.
At the same time, it is reported that through surveys of more than 2,200 companies in France, Germany, Italy, Spain and the United Kingdom, if their revenues remain at the current level, then 55% of the companies are expected to close down by September next year, which means More than half of foreign SMEs will go bankrupt.
Be wary of the cancellation of orders due to the second outbreak of the epidemic
With the second outbreak of the European epidemic, overseas countries have once again issued a "cities closure" signal, which means that it will take time for overseas consumption to resume. The Christmas season, which was originally the peak sales season, will reduce demand in this area. , These news are like "a bolt from the blue", which gave the industry a blow again, and textile people can no longer bear the tragedy of being cut down.
When communicating with the company not long ago, he said that his friends have already had orders cancelled. Originally, European customers placed clothing orders to Myanmar and Vietnam to purchase their fabrics, but they have been cancelled due to the epidemic. . "Myanmar customers also developed imports two days ago. One batch was satin and the other was imitation memory. As a result, some of them have been made and the order has been cancelled. Now foreign trade orders are not easy to make."
The cost rises, the exchange rate fluctuates, and the profits of textile companies are squeezed into a dilemma!
At the same time, according to industry sources, due to the rapid increase in the prices of textile raw materials, a large number of traders adopt the strategy of "high quotations and low transactions". They do not sell their orders, but sell at prices, or even choose to break their contracts. It is also in the "closed" state without quotation. In order to ensure production and delivery, a "cloth grabbing tide" has also begun in the textile industry. A person in the textile industry pointed out that with the soaring prices of raw materials, cotton gauze, and fabrics, textile and apparel exports are in a dilemma.
First of all, most foreign brands and retailers currently do not accept price hikes by textile and clothing companies and foreign trade companies. The increase in raw materials and gauze can hardly be passed on to terminal orders. Export-oriented companies have relatively limited affordability, so they either "abandon orders" or independently Regardless of which option is made to digest the rising costs of cotton, cotton yarn, etc., production companies are very painful.
Secondly, in August and September, many companies received orders for Thanksgiving Day, Christmas Day, or "Double 11" domestic sales in European and American markets. The sharp rise in prices of cotton and cotton gauze led to significant reductions in profits and even losses. It may not be able to be implemented, and textile and clothing companies suffer from contract termination or breach of contract through negotiation with buyers.
Once again, due to fears of large fluctuations in the RMB exchange rate, export-oriented trading companies are also becoming cautious in taking orders.
The epidemic is coming back, and the orders on hand are difficult to support the prices of products waiting to be fed
The skyrocketing quotations of raw materials, yarns, fabrics, etc. have restrained the continued recovery of foreign trade demand to a certain extent. For example, many people in the textile industry said that customers would not accept the quoted price after checking the latest cost. On the other hand, traders complained that it was difficult to find a contract processing company with good quality and cheap price. "Difficult to send" has become the norm, so many export orders with low quotations and low profits have been abandoned.
Since the National Day holiday, news of the return of overseas orders has been rampant, driving the entire textile market to frantically counterattack. After the dust settles and returning to the fundamentals, we will find that domestic "Double 11" orders have been delivered. Indian orders are better than none. The Christmas and New Year orders are now uncertain. The prices of raw materials such as cotton and staple fiber have fallen from high levels, and the prices of gauze Expectations for better downstream demand are still high.
The epidemic is coming back. Can the order you have can afford the price of the products waiting to be fed?
Dongyang Laichi Environmental Technology Co., Ltd. has always been committed to the research, development and production of medical non-woven fabrics, spunbonded non-woven fabrics, elastic non-woven fabrics and non-woven fabrics. The elastic non-woven fabric products produced by it can be replaced, recycled, and reused, so you can no longer worry about health problems.
If you want to know more product information, please contact: Mr. Zhu 13706796423 Website: http://www.jiankangwa.com/