The loss of about INR 100billion has hit the Indian clothing industry! Partial orders are transferred to the Chinese market, etc
Although the epidemic situation in India has been alleviated compared with April and may, whether the number of newly diagnosed cases or the number of deaths has decreased significantly, by June 22, the cumulative confirmed cases in the country have broken through 30million passes, with the death toll over 390000, which is only "one step away" from 400000.
In this case, many industries in the country, especially manufacturing, have been seriously impacted.
The epidemic caused a large number of orders lost, India a city clothing industry loss of about 100billion!
On June 23, CCTV finance and economics reported that the city of tirubur, in Tamil Nadu state, South India, is an important base for garment production in the country. There are more than 17500 garment processing plants in the city, and 60% of the knitting clothing in the country come from here. Many multinational garment fast consumer enterprises are customers of these factories. However, due to the impact of the epidemic, 17500 processing plants have suffered a lot of losses.
The impact of the epidemic on these processing plants is mainly on production. According to the president of the tirubble clothing export association, international garment companies will launch new products every month. Normally, in order to meet the needs of customers, clothing processing plants sometimes need to cooperate with the delivery of "overtime plus points". However, since the second wave of epidemic in India rebounded, local processing plants have to reduce production and even stop working, which has been unable to meet the needs of customers for more than two months.
Specific statistics show that during the second wave of epidemic, the city's clothing processing plant lost at least INR 100billion (about RMB 8.7 billion) due to the loss of large orders. The industry warned that if the full resumption of work is not completed, the most serious consequence will be to lose international customers forever.
It should be noted that, as early as the first outbreak in India in 2020, it was reported that the garment industry in India would lose us $3billion (about 19billion yuan) due to the outbreak. It can be understood that both outbreaks in India have caused serious impact on the clothing industry in the country. According to relevant data, India's textile and clothing industry accounts for 12% of India's total exports, providing about 12million jobs for the country.
Worse, Indian public health experts also said the third wave of outbreaks was inevitable and could start from September to October. That is, India is expected to be stuck in the epidemic for a long time to come, and the recovery of India's clothing industry may be a long time away.
Order return to China? The first may clothing export increased by 48%! Official response: normal business conduct!
India is not in the early days of the epidemic, even facing the third wave of rebound. In order to ensure shipment, multinational clothing retailers have chosen partners in succession - some retailers have transferred 15% to 20% of their orders to other countries, such as China, according to a data.
According to this, it is possible to analyze this, for two reasons: on the one hand, China has the most complete textile industry chain and is able to undertake these orders for return; On the other hand, China has the world's largest consumer market, "and even sales don't need to worry too much about production in China.".
A recent report from the Japanese media said that the export of filament in the first April of the company had increased by nearly 60 percent due to the return of orders; Another said that orders have grown dramatically since the second half of 2020, "queuing up to 2022.".
The export data of China's clothing industry in the first may of this year are also very intuitive. According to the data of the General Administration of customs, the export of textile and clothing in China increased 17.3% to US $112.69 billion in the first may of this year; The export of clothing increased 48.3% to US $56.61 billion.
In response, the official spokesman of China has responded in October 2020, saying that China took the lead in the resumption of work and production, which supported the smooth operation of the international industrial chain supply chain; The transfer order of multinational clothing enterprises is a choice made after measuring the production capacity of different countries, and it is just normal business behavior.
