Textile And Foreign Trade Companies Aim For Longer Term Business

The epidemic spread all over the world, which means enormous pressure for foreign trade enterprises. A survey of more than 7000 foreign trade enterprises launched by the Ministry of Commerce and China's letter insurance showed that about 90% of the enterprises had to postpone the delivery and collection of foreign exchange after the outbreak.

Video conferencing, international mail, recently, the business department of Shanghai textile decoration Co., Ltd. is a busy scene. As a foreign trade company with sweater export as its core business, orders are under attack, which makes business managers feel anxious. Timely communication with overseas customers, assessment of existing capacity, and planning for longer term foreign trade development. Though difficult, they have focused on the longer term future.

A large number of orders are delayed in delivery.

"The order is only about half the original one, and many of them are cancelled or stopped." After the outbreak of the epidemic, the order situation is quite helpless.

Recalling the situation two months ago, Wang Wei, deputy general manager in charge of foreign trade, is still fresh in his memory. At that time, just after the Spring Festival holiday, the epidemic had great influence in China. Overseas customers were worried about problems in the supply chain and could not deliver on time. "We also communicate with customers for the first time, hoping to get customers' understanding. Now the situation is reversed.

"In February, we were desperately trying to prove to our guests that" we are fine "and do not affect business. In March, I kept checking with the guests, "are you all right?" Is it still available? " The ridicule on the Internet became a reality. The first half and the second half of the epidemic were caught up by foreign trade enterprises.

According to her, at this stage, many customers have made requests to reduce production, or simply suspend production. A large number of orders have been extended and deadlocked.

Wang Wei, who has just hung up the phone, is about to open a video conference. "Now the overseas customers are also home office, they have a long time to feedback, so we have to stare at every day, keep close contact with foreign guests, and grasp the first-hand information to facilitate timely response." Because of the time difference, she kept returning to the desk at midnight, hoping to get the quickest reply.

Similar situation also plagued almost all foreign trade enterprises. A person in charge of a private foreign trade enterprise revealed that the volume of enterprise orders fell by 90% compared with the same period last year. "Originally spring is the peak season for clothing industry. I didn't expect to encounter an epidemic. Although the factory resumed work, there was nothing to do." Under the predicament, the company can only allow employees to take turns. "In the clothing industry, the domestic market is also becoming saturated. There is not much chance for the current export to domestic sales, so we can only control the cost first and wait for the opportunity."

Step by step toward independent design

Orders are delayed, businesses are trapped, and foreign trade enterprises under the epidemic are looking for opportunities.

Wang Bei, deputy general manager of the sweater business in textile decoration company, now considers not only how to minimize the impact of order losses, but also how orders and customers need to maintain after the outbreak.

Today, on the shelves of department stores in Japan, Europe and the United States, because of their own characteristics, the high-end textile sweater products are exported to over $20 per piece and are also popular. This gave her more inspiration.

"In the past, our exports were all in the OEM mode. The brand side itself grasped the core technology, designed, developed new products and sales channels, and we were only responsible for manufacturing. The outbreak has made us think again about traditional manufacturing. Depending on our sweater R & D center platform and resources, we will gradually transform to ODM mode. On the basis of providing traditional foreign trade services, we can also develop locally or wholly on the raw materials, patterns and knitting organizations of clothing products, and provide value-added services such as derivative products and derivative designs on the cloud platform for customers. Wang Bei said such a transformation is an inevitable trend.

"Chinese manufacturing enterprises should not only have simple production capacity, but also fully participate in and integrate into both ends of the market and react quickly to user experience so as to be more competitive in the international market." She pointed out that in the short term, textile and garment exports will lose sales opportunities in the 1-2 seasons due to the shrinking demand in Europe and the United States. "However, based on the enterprise's own innovation and development and production and R & D capabilities, the stickiness of big customers has not been affected by the epidemic. Many customers have also made it clear that all orders will continue or even increase after the outbreak. "

Undertake more international capacity

According to the data released by the General Administration of customs, clothing exports in the first two months of this year were 112 billion 260 million yuan, down 18.7%, and textiles 96 billion 230 million yuan, down 18.7%. During the epidemic, the textile decoration company's foreign trade orders were few, but its sweater factory in Ethiopia is in full swing.

Li Jie, the company's general manager, sees the epidemic as an opportunity to "practice internal strength". He said, "crisis" means "danger" and "opportunity" coexist, orders sharp reduction is dangerous, short window period also gives enterprises timely repair and upgrade opportunities.

In his view, Africa is one of the most promising areas of the textile industry "raw material base + manufacturing base + sales base". Once the sweater factory in Ethiopia is put into operation, it will give full play to the advantages of cheap land, labor and power resources, so as to enhance the supply chain layout and capacity internationalization of the sweater products. In the future, sweaters produced here will be cheaper and cost effective.

To seize the broad market brought by the "one belt and one road" and cooperate with the African countries along the lines, to undertake more international capacity transfer in the manufacturing industry will become a new opportunity for trade enterprises to enhance their core competitiveness.

At present, most foreign trade enterprises are seriously affected. But Li Jie said that textile decoration should strive to become the first enterprise to stand up after falling down. Behind this, of course, enterprises need to have their own competitive advantages, whether they are products or all aspects of the supply chain. Under the epidemic situation, the foreign trade company has set its sights on the far future.