NEWS

COVID-19's influence on China's textile and garment export and Its Countermeasures

Date:2021-05-25  
China is a large textile manufacturing country and a large chemical fiber manufacturing country, with a complete industrial chain. At the beginning of the epidemic, due to our lack of experience and emergency reserves in dealing with public health emergencies, it is difficult to obtain one mask and one cloth (PP melt blown cloth). However, at present, China's mask production capacity has reached 116 million per day, which is fully capable of meeting the needs of public health and epidemic prevention, It can also be exported to other epidemic countries. But after the epidemic, we may ask: Why are masks always out of stock?

In fact, we should note that small masks are a big business, and the technology content of small masks is high. First, the mask Market in China is highly concentrated. From SARS, haze to today's epidemic situation, mask market is rising with the deepening of public health awareness. Second, the mask technology is high (material, technology, standard). The mask with strong protective function has high requirements in material fit, filtration efficiency, impedance and mold precision. Third, the mask brand recognition is high. After brand awareness is established, it is not only costly but also extremely difficult for consumers to change their existing consumption habits and then replace new products. In other words, once consumers form consumption awareness, it is difficult for them to change other brands. Therefore, the post epidemic mask market is bound to be highly competitive.

Another revelation we get is that the business logic of masks, protective clothing and sanitary textiles has changed. From several major epidemic events at home and abroad, first, the market positioning of masks is high, because masks and protective clothing are included in the strategic material reserves of various countries. Second, the public consumers' health habits and awareness of epidemic prevention have been improved. Masks, disinfection and hygiene textiles will gradually change from protective products to daily necessities. A huge market has been formed, and industrial textiles have a bright future. Third, the marketing mode has changed. The SARS in 2003 made Taobao, Jingdong and other platforms rise rapidly, and the online consumption mode has become more popular. The novel coronavirus pneumonia epidemic paying for knowledge online in 2020 has also led to the emergence of a large number of knowledge payment master and live broadcast network, which has changed the one-way expression of original picture and text to two-way entertainment expression of video and live broadcast. Therefore, we believe that protective and sanitary textiles are the new consumer demand under the background of great health, and this industry is a sunrise industry with sustainable growth.

Current countermeasures and suggestions

Facing the epidemic crisis in 2020, it is a watershed for many enterprises. How can enterprises help themselves? How to seek new development opportunities in the crisis? What changes have taken place in market consumption? The epidemic situation has completely changed the external environment of enterprises' operation. Most of the business models and business models familiar to enterprises before the epidemic situation may not be suitable for the epidemic situation. Enterprises' affordability, technology development ability and rapid response ability need to be improved and innovated, and even the industrial chain needs to be reconstructed. Therefore, model innovation is urgent. This epidemic situation tests not only everyone's immunity, but also an enterprise's immunity and rapid response ability. In 2020, 5g will be fully commercialized, and AI Artificial Intelligence + big data + 5g + blockchain will bring earth shaking changes to many industries. Various decentralized distributed computing methods with timeliness and agility will greatly improve the operation efficiency of the whole society. This epidemic will bring about changes that should have been completed in three to five years in a short period of time. This is a comprehensive physical examination for every enterprise and urges enterprises to make comprehensive adjustment.

In the face of the resumption of work and production and the adjustment of product structure under the epidemic situation, we put forward the following countermeasures and suggestions for textile and garment enterprises

First, at the level of local governments at all levels, it is necessary to implement a sound monetary policy + positive fiscal policy + vigorous reform and opening up, and take reform as a breakthrough point to help enterprises implement the national policies to deal with the epidemic. Now the policy of the central government has come into being, but the crux of the problem is to implement the credit policy of banks to enterprises. We should help enterprises with sincerity, and help them in different categories. All localities should strengthen the docking with financial institutions, strictly implement the requirements of accurate resumption of work and production in different regions and levels, and orderly promote the resumption of work and production of textile and garment enterprises in different business forms. We should optimize the way of tax reduction and fee reduction, change the current pattern of tax reduction mainly for value-added tax into reducing social security rates and corporate income tax rates, enhance the sense of enterprise gain, and truly make enterprises get benefits and get out of the predicament. Small and medium-sized enterprises play an indispensable role in China's economy, especially in labor employment. Local governments at all levels should attach great importance to stabilizing employment, economy and export, understand and implement various policies of the central government, and truly help the majority of small and medium-sized textile and garment enterprises to help the poor.

Second, one belt, one road, should be grasped at the enterprise level. The opportunity of globalization will be changed. The "one belt and one road" initiative should be fully utilized to lay out the capacity and order mechanism of enterprises at home and abroad. China's textile industry one belt, one road, and the other China's textile production capacity international cooperation program. Israel, Jordan, Pakistan, Vietnam, Indonesia and other countries will play an important role in the future China Centered Asian textile industry chain. With the outbreak of the epidemic in Japan, South Korea, the Middle East and Italy, China's textile and garment export, which is the most active and the largest in volume, is bound to bear the brunt, resulting in the increasing pressure on the textile and garment market to miss the spring market of domestic trade. The major epidemic will lead to the change of people's consumption concept. Textile and garment enterprises should grasp the demand of knitted underwear industry in the post epidemic period and the demand of health textiles in the non-woven market. We should further build our own brand, make full use of the low interest loans of banks, develop intelligent manufacturing, and connect with industrial Internet and Internet of things. Establish global rapid response supply chain, industry chain and value chain. In terms of scientific and technological innovation, the research and development and promotion of key fiber new materials and intelligent manufacturing related technologies, and the expansion of new application fields of industrial textiles are still the focus of development. Therefore, enterprises should introduce and cultivate technical talents, product development talents and new mode e-commerce marketing talents, and constantly develop new technologies and functional new products.

Third, at present, it will take time for the upstream and downstream markets of textile and clothing to improve substantially. In addition, the spread of foreign epidemic may affect global consumption, so it is difficult for the market situation to support the export growth of textile and clothing in the short term. However, there will be an explosive growth of anti epidemic textiles in the world. We should firmly grasp this favorable window period, take the export of masks, protective clothing and other disinfection textiles as the driving force, enhance the global market share of China's industrial textiles, make up for the decline in the export of other textiles, and strive for the annual export data to be the same as that in 2019. We should not only "exotic mountains and rivers, wind and moon on the same day", but also "green mountains, clouds and rain together, and the bright moon has never been two townships". With the help of the central bank, China's investment is driven by the manufacturing capacity of the whole industrial chain and huge domestic consumption, and new economic growth points may appear in the second half of the year. In East Asia, China, Japan and South Korea will form closer ties through anti epidemic measures. The situation in East Asia may change unprecedentedly. The China Japan South Korea free trade zone is likely to be established in the second half of the year.

General secretary Xi Jinping said: "the Chinese nation is a nation that is more and more brave, and its resilience is unthinkable. After the baptism of this epidemic, China will be able to stand at a new historical starting point! It is also believed that some enterprises will inevitably step onto a new stage, because it is not the starting point but the turning point that determines the final height of a person or an enterprise, because opportunities are all at the turning point. There are thousands of sails by the side of the sunken boat and thousands of trees in front of the diseased trees. Let's meet the bright future hand in hand and shoulder to shoulder!