Pay Attention To The Cancellation Of Orders Due To The Second Outbreak Of The Epidemic

As a result of the recent outbreak of the epidemic in Europe, a number of countries decided to cancel the epidemic.

It is understood that the Christmas market usually starts in late November and ends on December 24 every year. There are no activities and no crowds are allowed to gather, which means that the consumption level of Christmas season is greatly reduced.

At the same time, according to sources, according to the survey of more than 2200 companies in France, Germany, Italy, Spain and the United Kingdom, if their income remains at the current level, 55% of the companies are expected to close down by September next year, which means that more than half of foreign SMEs will close down.

Pay attention to the cancellation of orders due to the second outbreak of the epidemic

With the second outbreak of the epidemic in Europe, overseas countries once again issued a "city closure" signal, which means that it will take time for overseas consumption to recover. In the Christmas season, which was originally the peak sales season, the demand in this respect will decrease. For the textile and clothing industry, these news is like a "thunderbolt from the blue", which gives a blow to the recovery of the industry. Textile workers can no longer bear the tragedy of being cut off.

Not long ago, when communicating with the enterprise, he said that his friend's orders had been cancelled. The original orders from European customers to Myanmar and Vietnam to purchase their fabrics had been cancelled because of the epidemic. "Two days ago, Burmese customers also developed and imported some of them, some of which were colored and others were imitative memories. As a result, part of the orders have been made and the orders have been cancelled. Now foreign trade orders are not easy to do."

The cost rises sharply, the exchange rate fluctuates, the textile enterprise profit is squeezed, is in a dilemma!

At the same time, according to industry insiders, due to the rapid rise in the price of textile raw materials, a large number of traders adopt the strategy of "high quotation, low transaction", covering the plate and not selling, waiting for the price to sell, and even choose to break the contract; under the expectation of RMB appreciation, the imported yarn is also in the "closed plate" state without quotation. In order to ensure the production and delivery, a "cloth rush" has also opened the curtain in the textile industry. The textile, cotton fabrics, textile industry is in a dilemma.

First of all, at present, most foreign brand manufacturers and retailers do not accept the increase in quotation of textile and clothing enterprises and foreign trade companies. The rise of raw materials and gauze is difficult to pass on to the terminal order, and export-oriented enterprises have relatively limited bearing capacity. Therefore, they either "abandon the order" or digest the rising costs of cotton and cotton yarn alone. No matter which choice they make, the production enterprises are in great pain.

Secondly, in August and September, many enterprises received Thanksgiving and Christmas orders or "double 11" domestic sales orders from European and American markets. The price of cotton and cotton gauze rose sharply, which led to significant loss of profits and even losses. These orders are likely to be unable to be implemented. Textile and clothing enterprises are suffering from the problems of contract execution, termination through negotiation with purchasers and breach of contract.

Thirdly, due to the fear of RMB exchange rate fluctuations, export-oriented trade enterprises tend to be cautious in receiving orders.

Ouch, the price of the products waiting to be raised again

The soaring prices of raw materials, yarns, fabrics, etc. to a certain extent, inhibit the sustained recovery of foreign trade demand. For example, many people in the textile industry said that customers would not accept the quotation based on the latest cost assessment; on the other hand, traders complained that it was difficult to find a substitute processing enterprise with good supply quality and low price, and that "it is difficult to send out a single order" has become the norm. Therefore, many export orders with low quotation and low profit have been abandoned.

Since the National Day holiday, the return of overseas orders is rampant, driving the whole textile market crazy counter attack. After the dust settles down and returns to the fundamentals, we will find that domestic "double 11" orders have been delivered, India's orders are better than none, the future of Christmas and new year's lists is uncertain now, the prices of cotton, staple fiber and other raw materials have fallen sharply, and the price of gauze is expected to be higher due to the better downstream demand.

With the outbreak coming back, can your orders still support the price of the products you are crying for?