There Are Still Opportunities In The Dilemmas Of Textile Orders.

In April 10th, China's cotton net magazine issued an authoritative investigation report of ITMF. According to ITMF's second survey of new crown pneumonia (March 28th to April 3rd), global textile orders fell by 31% on average, while global textile business turnover in 2020 was 28% lower than expected.

On the 16-28 day of April, ITMF completed the third survey of the global epidemic. 600 companies worldwide participated in the survey. The results showed that the average orders for textile weaving enterprises on the global average decreased by 41%, of which East Asia decreased by 28%, and the decline was significantly smaller than that in other parts of the world (falling by more than 40%), because East Asia was the first to get out of the epidemic, especially in China and South Korea. In recent weeks, the production of most textile enterprises in China has obviously recovered, and retail outlets under the line have been reopened. Consumption in East Asian countries is recovering.

Globally, the operating income of textile enterprises in 2020 is expected to decline by 33% compared with the same period last year, and the turnover of European companies is expected to decline by 22%, significantly better than the 33% of last survey. East Asia is expected to drop by 26%, close to 24% of the previous survey. The situation in Southeast Asia and South Asia is obviously deteriorating, which is expected to decrease by 38% and 31% respectively over the same period last year, significantly higher than the 23% and 15% last time, because the impact of the epidemic is relatively lagging behind in those countries.

ITMF's survey shows that the main challenges facing the global textile industry are three aspects: insufficient liquidity, disruption of supply chains and uncertain market prospects. The main opportunities are: first, increase the thinking of product diversification (such as the current medical textile production); two, streamline the organization and production processes; three, speed up the reassessment of the existing supply chain system; four, speed up the investment in digital construction and sustainable production.

The report shows that although the government has already formulated policies, many companies have not received real support. The government's support includes the following aspects: first, low interest loans and deferred repayment, two, deferred tax payments, three, deferred payment of social security expenses, four, short-term work plan, five, and reduction of electricity costs. The biggest relief is when retailers / brands negotiate with their suppliers to deal with the crisis rather than unilaterally cancel the order.