According to reports: According to major well-known manufacturers, the clothing and shoemaking and other industries have shown signs of recovery. This may be the only good news I’ve seen in recent months.
Including major brands such as Adidas and Nike Factories have begun to resume orders one after another
The epidemic situation has slowed down. Recently, major brand manufacturers including Adidas, Nike and other brands have begun to resume orders one after another. Although it is still the off-season, orders will be received in June. There are signs of recovery.
Taiwan PAIHO Group was founded in 1979 by the three brothers, Mr. Zheng Senmei, the chairman, and sells it globally with [Three Hook Brand] hook and loop fasteners. Taiwan PAIHO’s R&D capabilities have been upgraded from traditional OEM to ODM. Currently, the top twenty sports shoe brands in the world are all customers of Taiwan Paiho. Taiwan Paiho continues to innovate product value, leads brands to use creative products, and has established a good reputation in the international sporting goods market.
Fengtai, another large factory, has also pushed up its production and sales volume in May as its Indian factories gradually resumed operations. Increase from the previous month; self-collection revenue in May was 5.338 billion yuan, a monthly increase of 4.6%, an annual decrease of 8.2%; the cumulative revenue in the first five months was 28.538 billion yuan, an annual increase of 0.1%.
Baocheng: The store has fully resumed business and resumed positive growth
Baocheng (9904), the global leader in shoemaking, announced yesterday (10th) that its consolidated revenue in May was 20.583 billion yuan, a year-on-year decrease of 27.5%, setting a new low in single-month revenue for the same period in the past eight years; the cumulative consolidated revenue in the first five months was 101.324 billion yuan. , an annual decrease of 23.4%, also a new low for the same period in the past six years.
Baocheng said that although the shoemaking business is still affected by the new coronavirus epidemic, resulting in unfavorable production and shipments, the channel business has heated up as the epidemic in China has slowed down. Revenue returned to positive growth in May.
Yue Yuen, an important subsidiary of Pou Cheng, which holds 51.11% of the shares, recorded self-reported revenue of US$693 million (equivalent to approximately NT$20.515 billion) in May, a year-on-year decrease of 24.0%. Baocheng mentioned that although the revenue of the channel business has returned to growth compared with the same period last year, the epidemic still has an adverse impact on the production and shipment of the footwear manufacturing business. Cumulative revenue from January to May was US$3.363 billion, a year-on-year decrease of 21.2%.
Pou Sheng, which was independently spun off from Yue Yuen’s channel business and listed on the market, had revenue in May of RMB 2.39 billion (equivalent to approximately US$340 million), an annual increase of 8.1%. Baocheng pointed out that this is mainly because Baosheng targets Greater China as the target sales market. As the epidemic in China slows down and epidemic prevention and control restrictions are relaxed, consumption willingness gradually rebounds. Cumulative revenue from January to May was RMB 9.541 billion (equivalent to approximately US$1.356 billion), a year-on-year decrease of 15.4%.
Extended reading:
Textile foreign trade orders have picked up slightly since May
Recently, with the further lifting of lockdowns in Europe, news of a recovery in the international market continues to spread. Do our foreign trade companies have any orders? What is the situation in the textile and clothing export market? Judging from the recently released relevant data for May, the current situation is mixed.
Many foreign trade companies have received actual orders
Since May, some countries have gradually opened their ports, and international logistics has gradually recovered. At the same time, a few countries have also agreed to ship orders that were originally negotiated for delayed shipment. The foreign trade industry finally broke through the stagnation and began to gradually improve.
From the perspective of orders, many countries and regions began to relax epidemic control last month and gradually lifted blockade restrictions, and the downstream gray fabric market became lively. And real orders are issued for both domestic and foreign trade.
At present, various orders in Europe are increasing slightly. The overall impact of the epidemic on orders from Japan and South Korea is not significant. The U.S. economy is also promoting recovery, and the total export volume may be determined by trade barriers. Bangladesh, Myanmar, Cambodia, and Vietnam have also resumed work and production one after another. Bangladesh has more than 7,600 garment factories, and about 3,000 have resumed production.
The owner of a foreign trade company in Keqiao said that during the worst period of the foreign epidemic, although most orders were postponed or canceled, customers’ proofing was still carried out in an orderly manner. Now that the epidemic has improved, these samples have been responded to, and orders delayed due to the epidemic have returned to normal. “At the end of this month, we will place an order for more than ten tons of polar fleece, which will be sent to Bangladesh garment factories.” The boss said that there are still many new orders for inquiry and proofing, and he is full of expectations for the future foreign trade market.
A weaving company in Shaoxing City that specializes in home textile products has had good orders recently, and the factory has no time to make the products. It mainly produces home textile products and supplies them to Wal-Mart in the United States. Due to the large order volume, the company has basically run out of inventory recently. Another trader in home textiles and clothing fabrics has also recently received orders for home textiles sold to the United States. Although the volume is not large, the order volume is still larger than the previous order. It can be seen from these orders that the US market is beginning to turn around.
“There are orders. Compared with May and early June, orders have gradually increased in the past few days.” A salesperson in Shaoxing, Zhejiang told��The editor-in-chief of the printing and dyeing people sent several photos of the production process. It is obvious that the workshop is being finalized, and the finished gray fabrics are placed next to it. There are trucks coming in and out, white gray cloth is unloaded from the truck, and there are many gray cloths piled in the warehouse.
The long-dormant international market has shown signs of recovery, giving printing and dyeing companies confidence. Generally speaking, compared with the domestic trade market, foreign trade orders are gradually improving. It’s not very obvious, but it’s slowly recovering.
The orders received by each enterprise vary, but overall, the foreign trade business has indeed improved since May. Although most companies still report that orders have shrunk significantly year-on-year and production and sales are still difficult to balance, some companies are slowly starting to get back on track. Statistical data from Keqiao District, Shaoxing City show that local textile and apparel exports rebounded month-on-month in May, textile exports showed a slight month-on-month increase, and the export market performance was divided.
Although the market is slowly recovering, the price is not optimistic.
In May, the foreign trade price index of textile and clothing products in Keqiao District showed a month-on-month downward trend. Among them, the foreign trade price index of embroidery products fell by 14.51% month-on-month; daily home textile fabrics fell by 44.74%; curtains and curtains fell by 2.42%; and the foreign trade price index of dipped, coated and coated textiles fell by 0.73% month-on-month.
The reason is that the global textile and apparel industry has been hit hard by the weak economy and demand caused by the epidemic. Companies have gone bankrupt one after another, and it is difficult for demand to improve for a while. The impact of the epidemic is unprecedented. Foreign trade prices of textiles and clothing have fallen, and public orders are still insufficient.
Some analysts pointed out that July and August are the off-season for textiles, and most foreign trade orders in the second half of the year are placed in May and June. Now is a good time. Orders canceled or delayed due to the epidemic may begin to be released intensively during this period. Regarding the export situation in June, it is expected that textile and apparel exports will show a slight upward trend month-on-month. Although affected by the global epidemic, new orders may be relatively slow in June, and the market turning point may appear in the third quarter when the epidemic is relatively stable. </p
