How can textile companies break through amid the spread of the global epidemic
From the perspective of the spread of new coronary pneumonia, the current global epidemic is still in the early stages of transmission. According to experts' predictions, there is no clear timetable for when it will be fully controlled.
Therefore, a basic judgment of the market for the market in the first half of this year is:
1. Global consumption may enter an era of great downturn. At present, there is no vaccine, no specific medicine, and no standard treatment plan for the epidemic. The only way is to not gather, go out less, block the channels of infection, and even sleep at home is to contribute to society. Affected by the new crown pneumonia, many recently held international well-known textile industry exhibitions have been officially announced to be postponed or cancelled. For example, the 2020 International Textile and Apparel Machinery Exhibition in Jakarta, Indonesia was postponed from April 27-30 to July 14-17; the Colombo Textile and Fabrics Exhibition in Sri Lanka was originally scheduled to be postponed from March 5-7 to June. 11-13th...
A large number of stores, exhibition halls, supermarkets, and shopping malls have closed or are about to close their doors. An epidemic will hit the global economy hard, and global consumption will also enter an era of great downturn.
2. Cotton may fluctuate widely in the game of "the global spread of the epidemic and the government's rescue of the market", but the overall direction is still downward.
According to market feedback, some international cotton merchants and traders are reluctant to significantly lower cotton prices recently. Reasons for analysis: First, the contracted price in December/January was too high, and the loss from sales at this time was unbearable; second, due to the impact of the global outbreak of the new crown pneumonia epidemic, it is expected that shipment, arrival, delivery, and storage will be carried out from February to April. The amount of cotton in China will decline sharply; the third is the close introduction of policy rescue measures, especially the increased liquidity of the central banks of various countries.
However, many cotton merchants also said that the current high price is a double-edged sword. The global epidemic continues to spread, in addition to affecting consumption and causing a major downturn, market logistics will also be severely hit. On the one hand, there is an urgent need in the market, on the other hand, the flow of goods is not smooth, and the policy to rescue the market may be just a piece of paper.
Therefore, under the epidemic, the general direction of the market is downward.
3. How will we break through as an enterprise. The author believes that, first of all, we still have to rely on the Chinese market. Up to now, the epidemic situation in China has been well controlled. With the gradual resumption of work and production of enterprises, the market is gradually active. Therefore, in terms of orders, it is still necessary to tilt domestically. Secondly, there will be more and more defaults and cancellations of foreign orders. Traders and intermediaries should plan ahead to reduce losses. Again, speed up the transfer of product structure. In some countries with severe epidemics, masks and other protective equipment are becoming more and more scarce, and as the epidemic spreads, the market demand will also increase. Therefore, the transfer and adjustment of the product structure of cotton, textile and other enterprises will be closer to the water. In a word, the global economy has been hit in the year of the catastrophe. As a company, it is necessary to recognize the situation, look for new opportunities, and seize the opportunities in order to reduce losses or make new achievements against the current. Let's share.