At the end of September 2020, market reports suggested that some textile orders originally planned for India were being redirected to China. The discussion attracted attention because pandemic conditions were affecting factory operations and delivery capabilities very differently across sourcing markets.

Order shifts became a major market topic

Reports at the time said that some Indian export-oriented textile companies were having difficulty maintaining normal delivery schedules, and selected home-textile orders such as towels and bed linen were being placed with Chinese suppliers.

However, the recovery was not uniform across all product categories. Raw-material and futures markets did not show the same level of response, so the industry continued to debate whether the order movement represented short-term concentrated buying or a more lasting sourcing change.

Overseas demand recovered at different speeds

Foreign trade was heavily disrupted in the first half of 2020, with many orders cancelled or postponed. In the second half, purchasing gradually resumed in Europe, North America, the Middle East and South America, but the pace of recovery varied greatly by market.

Traditional peak-season buying, Christmas preparation and increased online consumption helped support some conventional fabrics and home-textile products. At the same time, the pandemic continued to create uncertainty in many destination markets.

Order recovery still carried cancellation risk

Many traders were concerned that newly received orders could again be delayed or cancelled if local restrictions returned or customers' business conditions deteriorated. As a result, factories placed greater emphasis on production timing and timely shipment.

More orders did not necessarily mean lower risk. Customer credit, payment terms, shipping arrangements and cargo collection at destination ports all required closer attention.

Delivery and payment risk needed earlier control

The pandemic put financial pressure on some overseas buyers, leading to longer payment terms and, in some cases, difficulty settling balances. Exporters therefore needed to manage payment conditions more carefully and clarify cancellation, delay and default terms in contracts.

Even as orders began to recover, the external environment remained uncertain. For textile and apparel exporters, disciplined production planning, customer-credit control and transparent logistics communication were essential.