A large number of textile orders from India have been transferred to China? ! Bosses need to beware of buyers "disappearing"

A large number of textile orders from India have been transferred to China? ! Bosses need to beware of buyers "disappearing"


On the 29th, news that a large number of textile orders from India had been transferred to China spread throughout the market, and everyone discussed the authenticity of the event and the recovery of downstream demand.

According to reports, since September, many large-scale export-oriented textile companies in India have been unable to guarantee normal delivery due to the epidemic. Many orders originally produced in India have been transferred to my country for production, among which towels, bed sheets and other products have large orders.

At the same time, several large factories predict that the current number of orders has been scheduled to May 2021. Some people in the industry suddenly realized that the dyeing factory's business has been so good recently, and there is no holiday on November. It turns out that Ah San's work is for us to do!

One stone caused a thousand waves. At the end of September, the massive release of foreign trade orders did bolster the market. The market was forgiven for a wave of heated discussions, but apart from the excitement of the circle of friends, it seemed right. The bulk polyester raw material futures market remains unaffected, the main force of PTA is still going down, and polyester raw materials are not well boosted. Is it the self-hype of the downstream terminal market or the lagging response to the market?



The demand for textiles under the outbreak of the epidemic, the transfer of orders may indeed exist

In the first half of this year, foreign trade has stagnated, and most traders have received notices of refunds from customers, except for some private brands. However, in the second half of the year, the situation began to be different. Some countries began to place orders in a concentrated manner. For example, the Middle East Arab region and the aforementioned India region had great demand. Therefore, when orders were placed, they were hundreds of thousands of meters or more. Hundreds or tens of millions of meters, the varieties involved are some conventional and cheap fabrics, especially the demand for home textile fabrics.

The peak season for foreign trade has already arrived. Therefore, orders are being placed in Europe and the United States, the Middle East, South America and other places. The recovery of orders in different regions is different. In particular, India is the world’s largest cotton producer and the world’s largest. Jute producing country, the world's second largest silk producing country, its yarn production capacity accounts for 22% of the world. The textile and apparel industry is one of the leading market segments of the Indian economy and one of the largest sources of foreign exchange income in India. The textile industry accounts for about 15% of India’s total export revenue. Therefore, after the cumulative number of confirmed cases in India ranks second in the world, the demand for textiles, especially home textile products, is particularly huge, and the order transfer situation mentioned above may indeed exist.

The recent "hot" foreign trade apparel orders are due to the gradual stabilization of the epidemic in China, and the supply chains of many factories resumed operation after June, which means that orders can be re-acquired; on the other hand, it is the demand from overseas markets. The epidemic is serious, but overseas consumer markets are still operating. September is the traditional peak season in the European and American markets. Thanksgiving and Christmas material purchases brought a large number of orders, especially online demand.

There are hidden worries about abnormal order recovery, and orders may be cancelled again

But everything has two sides. As foreign trade orders are picking up, there are still some concerns among textile people about the recovery of abnormal orders. Since September, the epidemic situation in various countries around the world has ushered in a high outbreak, and the number of newly diagnosed new coronary pneumonia in a single day has continued to rise. As the epidemic continues to ferment, stricter social distancing restrictions may be implemented later.

During the recent period, many traders have received a large number of orders. On the one hand, this is because according to the practice of previous years, in order to prepare for the Christmas season, foreign customers will place orders in advance. The end of September to October is the time point for centralized release, and the rebound of the epidemic happened at this time. Now traders are exporting. Whether this part of the order will be cancelled or delayed again due to the epidemic is also one of the most worrying issues for textile bosses.

"Now we can only deliver goods as quickly as possible. Fortunately, dyeing factories and weaving factories are not busy now. From placing an order to shipping, we will take about one week. It will take a little longer for weaving. In short, we will make it as soon as possible. Send it as soon as possible to avoid a series of problems later." A trader exclaimed.

Receipt and delivery risks, beware of buyers "disappear"

Although foreign trade is slowly moving towards the right track, the impact of the epidemic is huge. The weak demand has caused a major blow to the global textile industry. Many foreign trade companies are hard-supporting and the funding situation is very tight. Many clothing companies and foreign trade companies have already broken their capital chains and went bankrupt. In the first half of this year, many customers went bankrupt and were unable to pay the balance. Now many foreign trade customers have longer accounts than in previous years. Weavers need to reasonably control the account period to ensure that the accounts can be recovered at the end of the year.

In addition, there are signs of a rebound in the epidemic situation in various regions. Once the second epidemic breaks out, these countries may take measures to "close the city" again. It is very likely that orders will face a second cancellation, suspension, or even a situation. Unclaimed goods at the destination port. Can foreign trade companies that have cancelled orders for the first time withstand this second wave? Moreover, in many contracts, there is no explanation for the client’s breach of contract, and the fines generally do not exceed 10%, which makes it difficult to offset the costs already paid.

Whether it is the previous Sino-US trade war or the current new crown epidemic, it will be a protracted battle. Professor Zhang Wenhong recently pointed out that the new crown virus has become a “resident virus” that exists in the human world and is still in the pandemic stage around the world. Therefore, whether it is domestic or foreign, there may be “small epidemics” in some areas. Foreign trade There are still many uncertain factors. Although the current foreign trade orders are picking up, we should not take it lightly. Textile companies must do a certain amount of risk control.