Lost Contact With Spring And Summer Fabrics, And Lost Orders In Autumn And Winter Again?

As of 8:28 on April 7, Beijing time, 1337749 cases of COVID-19 had been confirmed globally, and more than 100000 cases had been confirmed in four countries. Affected by the slow spread of the epidemic, the global stock market got off to a good start on Monday. The three major indexes of the U.S. stock market opened higher and went higher, eventually ending up more than 7%. The Dow Jones Industrial Average rose 7.33%, up 24.5% since the lowest point on March 23.

In addition to this international news, the recent cancellation of textile foreign trade orders has become the hottest event, with the cancellation of thousands of meters of orders in the United States, tens of thousands of meters of orders in India, and hundreds of thousands of meters of orders in Italy... Such news is filled with the textile industry every day, but it seems that we only pay attention to the events, often ignoring the things that are worth thinking about behind the events. The following is an in-depth analysis of the cancellation event by the editor to understand the market trend more thoroughly.

It is reasonable that the order for spring and summer fabrics is cancelled

A trade enterprise boss said that all the crepe dyeing orders were cancelled by the customer halfway, and now they can only be made into white, hoping to have other uses later. Starting from the order itself, the silk like crepe fabric is a kind of silk like fabric, which is mostly used for women's clothing in spring and summer. The cities of overseas countries were closed, and the factories were shut down. Even if the goods were delivered, they could not produce. And the clothing store has already launched the new spring and summer clothing, missed the best period of production. Therefore, it is reasonable that the orders for spring and summer fabrics are cancelled.

Some autumn and winter fabric orders have also been cancelled

However, in the process of investigation, Xiao Bian found that the orders for autumn and winter fabrics were also cancelled. President Li, a trader exporting to India, revealed that his 10000 meter imitation memory fabric had been exported to India and had been completely completed. He was about to export it when he was called off. It happened on March 20. President Li said that the customer sent an email reminder on the morning of March 20 and received an email in the afternoon that India would close the city and suspend orders on the 24th. President Li told Xiao Bian that these imitated memory fabrics were used to produce winter clothes.

Indian Prime Minister Narendra Modi announced on March 24 that in response to the COVID-19 epidemic, the "city closure" model will be implemented nationwide at midnight of the same day, lasting for 21 days. The shipping time from China to India is about 20 days, which is not expected to affect the receipt of goods by Indian customers. However, it is obvious that the customer also considered the extension of downtime when suspending orders. Once the resumption time is delayed, it may not catch up with the renewal of winter clothes, and the order may still be cancelled later.

The optimistic estimate of the epidemic situation abroad will last until June and July, but the pessimistic expectation may last until August. Then the problem comes. Now the cancellation of fabric orders in autumn and winter needs the attention of cloth bosses.

Although it is not the stage of centralized release of fabrics in autumn and winter at present, according to the release time of foreign trade orders for fabrics in autumn and winter in previous years, it will generally be concentrated from September to October. In June, many autumn and winter fabrics will be released in succession, and new autumn and winter ready to wear clothes will be launched in August. Affected by mentality, the market will more or less arrange the orders near June in advance. However, this year is different. Since the resumption time of domestic fabric manufacturers after the Spring Festival is more than one month later than that of previous years, which missed the best time for production of spring and summer clothing fabrics, clothing customers also placed some orders for autumn and winter fabrics in advance.

Fabric orders in autumn and winter in the second half of the year should be planned in advance

Man is not as good as nature. The COVID-19 epidemic is rampant, and most overseas countries have begun to suspend work nationwide, which will have a significant impact on the production of fabrics in autumn and winter. If the epidemic pessimism is expected to continue until August and September, then this year's autumn and winter fabric orders may also be out of season. Therefore, foreign trade fabric manufacturers should pay attention and communicate with customers in advance on how to export the fabric orders for autumn and winter in the second half of the year as scheduled.

However, based on the status quo that the market continues to place orders in the early stage of this year, the overall market performance is relatively conservative. There should have been a lot of orders for spring and summer fabrics for domestic sales, but now they have not been placed, and most of them are small orders. Even many suppliers are still in the order stage of continuous proofing and hardship.

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Both domestic and foreign trade have missed out on fabric orders in spring and summer. The fabric of autumn and winter is the hope of the textile industry in 2020, and the duration of the epidemic will have an increasing impact on whether the fabric orders of autumn and winter can be placed smoothly. Therefore, cloth bosses need to pay close attention to the changes in the epidemic situation and the development of the global economic situation, as well as the changes in the demand for autumn and winter clothing.