The COVID-19 epidemic spreads globally! The number of people infected with COVID-19 is rising in Japan, South Korea, Italy, and the Middle East. Currently, 861 cases of COVID-19 have been confirmed in Japan; South Korea added 144 cases in one day and raised the COVID-19 epidemic warning level to the highest level; Italy’s “Patient 1” affects more than 50,000 people…
The Tokyo Olympics may be cancelled
With the global spread of the epidemic, the world What changes and challenges is the textile industry facing? Let’s read on together!
The first to react were the organizers of textile trade events and fashion shows. In early February, organizers of Shanghai Fashion Week, scheduled to take place from March 26 to April 2, announced that the event would be postponed. “We will actively explore (new) dates and methods, and maintain close communication with partners who care about and support Shanghai Fashion Week.”
Trade fairs that will be postponed in mainland China include Shanghai CHIC, Shanghai Textile and Apparel Fabrics-Spring Exhibition, and Yarn Expo-Spring Exhibition. Trade fairs in other countries have also been postponed/rescheduled. These events include Asia Fashion Expo 2020 (Germany), Apparel Sourcing Week (India), DTG 2020 (Bangladesh), Denimsand Denim (Japan), Morocco (Morocco) and IGATEX (Pakistan). The reason is the same: COVID-19.
London Fashion Week, organized by the British Fashion Council, is already feeling the pressure. This comes despite the fact that British-Vietnamese designer Ase Ta has canceled his exhibition due to delays in the collection he produced in Shanghai. Attendance in China was “significantly reduced”. Italian fashion association Nazionale della Moda Intiiana (CNMI) said 1,000 journalists, buyers and industry professionals from China will miss this season. CNMI believes that the luxury sales of Italian brands in China may drop by 1.8% in the next six months.
China’s retail slowdown is already happening. About half of the stores owned by Nike have been temporarily closed. The brand’s opening hours were reduced and, in stores that were open, retail volumes were lower than planned. “In the near term, Nike expects this situation to have a material impact on our business in Greater China. However, Nike’s brand and business momentum with Chinese consumers remains strong, reflected in the continued strength of Nike’s digital commerce business, said John Donahoe, President and CEO of Nike. Sportswear brand Adidas has also closed many of its stores in China.
Luxury brand Burberry has closed 24 of its 64 stores. Group CEO Marco Gobbetti said: “The coronavirus outbreak in China has had a material negative impact on demand for luxury goods. While we cannot currently predict how long this situation will last, we remain confident that our Strategy remains confident. At the same time, we are taking a variety of mitigation and precautionary measures to ensure the safety and well-being of our employees. We are extremely grateful to our teams for their incredible efforts and our immediate thoughts are affected by this global health emergency. People directly affected by the situation.”
About 60% of vfcorp’s owned and partner stores in China have been temporarily closed, while retail traffic to currently open stores has dropped significantly. “While the coronavirus will impact our financial results in Asia Pacific in the short term, VF’s growth opportunities in China and across Asia Pacific are significant, and the fundamentals of our business are solid,” he said. “Given our continued success in other key areas, With the diversity of businesses and operating models in the region, VF is well-positioned to respond to the impact of the coronavirus situation. “The remark was attributed to Steve Rendle, VF’s chairman, president and chief executive,” a company spokesperson said on Twitter.
British product quality inspection company Intertek Group said it temporarily closed its Hong Kong Garment Center in Kowloon for two weeks on February 11 after an employee was infected with the new coronavirus. “We Immediate action has been taken to minimize the impact on customers’ business operations and to communicate new temporary working arrangements to them,” a statement said.
Commodities consultancy Wood Mackenzie said, The Chinese economy and the polyester and textile industries may face pressure due to the new coronavirus outbreak.
Principal consultant Salmon Lee said in a report: “Polyester chain market participants are worried universal. Central China, with Hubei as its core, is almost at a standstill. During the lockdown, all transport routes were cut off. Crossing the Yangtze River – which stretches from one end of China to the other – has become impossible. Ground transportation is limited. If the virus spreads further, more cities and/or provinces in China may experience similar lockdowns. This would be a logistical disaster and the damage to the polyester and textile industries would be catastrophic. ”
“Hubei and most areas in central China are important manufacturing bases for the textile industry, and many textile, printing and dyeing companies are gathered there. A long-term transport paralysis will mean that there will be no fiber or fabric produced at the main production bases in China’s coastal provinces.�Shipping inland – whether by road, rail or along the Yangtze River. Likewise, shipments of clothing and other finished textiles to other parts of China, as well as exports, may also stall.
He said: “Many workers from polyester fiber manufacturers, spinning mills, weaving mills and garment industries have returned to their hometowns in early January, before the Lunar New Year holiday. “With severe disruptions to transport networks, these workers may not be able to return to work. What’s more, this originally one-week holiday has been extended to February 2. Shanghai and at least 23 other provinces, cities and/or provinces have stipulated that work will not resume before February 9. “
Most Chinese companies scaled down their operations around the Lunar New Year holiday, which began on January 24 this year, or simply closed for a period of time. This time, the Chinese government extended the period after the outbreak of the holidays.
There are ripples in the cotton industry as well. The U.S. National Cotton Council said the potential impact of COVID-19 represents an important factor in the world cotton market outlook for the 2020 crop year.” While the Phase 1 trade agreement, the trade agreement between the United States and China, has provided some cautious optimism about improving economic conditions for cotton, the coronavirus outbreak in China in the first few weeks of 2020 may delay China’s increase in the short term. The ability to purchase volume,”
In India, in January this year, Kotak Commodity Services Company (Kotak), a major cotton exporter, said it would stop selling new goods to China because of Worries about the spread of COVID-19 may force cotton’s top buyer to close ports and banks. “Let’s not panic today, but if the virus continues to spread and cannot be controlled in the next 10 to 15 days, it will give The global cotton industry poses a big problem. “If banks and ports are closed, it will be force majeure. “Although China is a leading cotton producer, it also imports large amounts of cotton from India. China’s cotton stocks have also been declining since the trade war with the United States broke out.
As a growing market with a population of 1.3 billion, China already has the largest potential in the world. The current situation is that although China has the largest number of confirmed cases of the new coronavirus in the world, in the long run, it will not be effective in Under control measures, China’s epidemic may be the first to be extinguished in the future.
Although China’s textile market is full of competition, it is also the most stable and has unlimited possibilities. A market, so when foreign markets are blocked, it is a good choice to turn your attention to the domestic market!</p
