Overseas Epidemic Impact On Garment Trade To Re Bite "Domestic Sales" This Hard Bone
Overseas epidemic hits foreign trade in garments
Since March, China has entered the rhythm of resumption of production and resumption of work, and the dormant business and market for nearly 2 months have finally seen the dawn. But for foreign trade enterprises, this glimmer of light has not reappeared for a long time.
According to media reports, the current stage of upstream market garment factories and raw materials factory recovery rate of more than 80%. Returning to work is no longer a problem.
However, the problem is that the overseas epidemic is in urgent need, so that the foreign trade enterprises that have just delayed the resumption of work have encountered two crash. At the time of the outbreak of the domestic epidemic, stoppage and stoppage of production, resumption and resumption of production, the outbreak of overseas epidemic, and the sharp reduction of demand.
With the intensification of the overseas epidemic, some countries in Europe and the United States declared "closed city", shops closed, the economy stopped, and a large number of orders were shelved.
The sudden change of overseas market made many enterprises unprepared. For the clothing companies that have experienced 08 years of financial crisis, history is repeating itself. In 2008, the US subprime mortgage crisis triggered the global financial tsunami, and foreign trade orders were cut down.
History is always strikingly similar. For the apparel industry, this foreign trade crisis is no better than in 2008.
In 2008, the demand for international consumer market was sluggish, and the export of China's textile and clothing products was once blocked. The export of clothing was 119 billion 790 million in that year, and in 2007, the figure was 171 billion 200 million, which made the enterprises originally put into operation according to the growth expectation suffered a major blow. About 2/3 of the whole industry was once at a loss or at the edge of losses, and the problems such as tight funds and product backlog were more serious.
In order to help the textile and apparel industry to rescue the market, the export rebate rate of some textiles and clothing increased to 14% in the second half of 2008, and measures to expand domestic demand were also introduced.
At the same time, foreign trade clothing enterprises also launched a self rescue operation. Foreign trade enterprises, which originally sold abroad and ignored the domestic market, began to re examine the domestic market, and all over the country, a wide range of specialized markets also became a new sales platform.
Bang Jun once interviewed a clothing dealer in Zhengzhou for 08 years. He said that the factory of Fujian's old home was shut down. He took the family's "survival" mission to run the market in the whole country. He ran to the five loves market in Zhengzhou and the Hongbo market in Harbin, and finally chose the Zhengzhou Railway Station business circle which had great influence on the Midwest. He has many friends like him. In order for the machine to start again, it must find an outlet.
The professional market of the central provinces and municipalities is located on the east coast of the east coast, and the west is inland, with a total area of about 1000000 square kilometers and a population of 360 million. The potential of this market has been like a huge sponge absorbing the focus of foreign trade enterprises.
It is also the inevitable shift of industries that will make new changes in the business and commodity structure of markets everywhere. Take the Zhengzhou Railway Station business circle as an example, the competition brought by foreign trade enterprises to domestic sales in 2008 has an important embodiment, that is, branding has gained the attention of the market.
The products, services and branding operations originally taken to do international trade were brought to the mainland market by these market seeking foreign trade enterprises, and then a wave of market innovation was launched.
The professional market once again saves domestic sales?
China is a large exporter of garment and textile industry. It has the most complete apparel industry chain in the world. Its output value accounts for 70% of China's foreign trade surplus. 60% of the world's apparel products are manufactured in China, and 20% of the international trade in semi finished products such as spinning, cloth, zipper buttons and China are related to China.
There is more uncertainty in the market crisis caused by the epidemic. It took two months for China to suppress the epidemic situation, and the situation abroad may be longer.
In particular, how to open up the domestic sales path may be the only choice for a single trade factory, which is lack of domestic sales channels and business channels. As an important bridgehead in the domestic market, the clothing market will return to the role of Noah's Ark.
Only this time, under the dual effects of the domestic epidemic impact and the decline of foreign markets, garment enterprises and the clothing market should be prepared for greater pressure.
The clothing specialized market has always been an important position to meet domestic demand because of its unique attributes. Foreign trade to domestic sales will also be indispensable.
It is obvious that in recent years, with the transformation and upgrading of the hardware, software and comprehensive support of the specialized market, the garment professional market has become an important platform for garment enterprises to expand the market space, display products, incubate brands and build new terminals.
It is pointed out that foreign trade to domestic enterprises face the constraints of platforms, channels, terminals and so on. They need commodities exhibition, brand exhibition, agency affiliation, production and marketing docking, industry forum and vocational training. They want to enter the three or four tier cities and provide consumers with one-stop service.
Without professional market, these can not be realized. There are about more than 4000 three or four tier cities and county townships in China. Clothing stores in these areas basically go to a fixed professional market.
In addition, the professional market has long been out of date, and has abandoned the "dirty, messy, bad" and "pure wholesale" and become a new world of tourism, shopping and leisure.
This is why Mr Bong has always stressed that foreign trade in clothing will be blocked, which will definitely affect the domestic clothing market. This is the opportunity and challenge of the whole industry.
For traditional foreign traders, the decision to control their destinies is still the degree of control of the epidemic in Europe and the United States, and the recovery of consumer confidence in Europe, America, Japan and South Korea. If the situation is not optimistic, they will also wait and see, and have no choice but to bite the hard sell of "domestic sales".
As of press release, according to the latest data from Johns Hopkins University, 730 thousand confirmed cases of new crown pneumonia have been reported in the world.
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