The relationship between order cancellation and order addition is a measure of the company’s production capacity. A trader in charge of American brands told reporters that after China resumed work in February, he had orders for seven brands and faced four companies. What he did was start from the beginning of February and place orders every day. Follow up on the number of employees returning and the proportion of employees returning to work for each company to ultimately decide who should place the order. “It will be given to whoever can do it, and it also depends on who has the shortest delivery cycle.”
“You can leave, we will be fine. Come back and see us in a few months.” , we must still be there.” The management of a watchmaking company in Dongguan City closed the iron door and motioned for reporters to leave. A few days ago, the company issued an “encourage to resign” announcement to employees, saying that the company was facing a shutdown crisis due to the sudden cancellation of all orders by U.S. customers. This announcement spread quickly in today’s frightened foreign trade industry, and was widely reported by the media.
An employee of the company believed that this hurt the boss’s dignity. He is a Hong Kong man in his sixties who has been doing trading business in Dongguan for 20 years. During the founding celebration last year, he hung a five-star red flag at the door.
On March 23rd and 24th, Dongguan officials issued two notifications about major business changes for local foreign trade companies due to customer cancellations of orders. One of the toy factories lost contact. , leaving about 300 employees with no way to collect debts. As a strong foreign trade city, the news of Dongguan spread quickly, making foreign trade companies of all sizes who are currently panicking about order cancellations even more nervous.
Starting in February, containers stranded at the terminal were sent out to sea one by one, heading to their destinations, heading to the Port of Houston, Dubai, and Singapore. Whether these ships can successfully dock and load cargo is unknown. The spread of the global epidemic has caused major ports to send signals of possible rejection from time to time. However, shipping companies continue to operate. Lin Hairong from the Production Business Department of Guangzhou Port Group feels that although the daily shipments do feel less, the ships going out to sea every day seem to make him feel that nothing has changed much. The vitality of China’s major ports and routes is being reactivated, trying to regain the time lost in the past month.
Compared with what has been sent out, there are still a large number of goods that are still in Chinese factories, which is also a headache. There are fast fashion clothing HM, as well as American brand Fossil watches and luxury brand handbags Prada, which have attracted the interest of some traders who travel between factories and overseas customers all year round. They are trying to win the authorization of customers to sell directly from domestic channels. Negotiations are very difficult, but they are waiting for the opportunity. On March 25, Ningbo City once again restarted the 2008 model of converting foreign trade to domestic sales to help foreign trade companies tide over difficulties. The emergence of cross-border e-commerce platforms is also gathering energy for a new business format. In addition, as of March 26, a number of listed companies have announced through announcements plans to export masks and protective clothing overseas.
On March 7, according to customs statistics, in the first two months of this year, affected by factors such as the COVID-19 epidemic and the extension of the Spring Festival holiday, my country’s foreign trade import and export volume was 4.12 trillion yuan, a decrease of 9.6%. Among them, exports were 2.04 trillion yuan, down 15.9%; imports were 2.08 trillion yuan, down 2.4%. In the first two months, imports and exports to traditional trading partners such as the EU, the United States and Japan declined. ASEAN became my country’s largest trading partner with imports and exports of 594.11 billion yuan, an increase of 2%.
All these complicated backgrounds came together in the hands of Chen Xiaoxiao, a staff member of a freight forwarding company in Shenzhen. She only responded with three words to the customer – “risky”.
Not only China, some garment companies in Vietnam have also received chargeback notices from European and American countries. Taking TNG, a clothing manufacturer in Taiyuan Province, Vietnam, as an example, according to the company, A French company canceled a clothing order with the business. In addition, its American buyers also informed that their orders would be canceled or postponed. According to TNG statistics, the company’s containers with a total value of up to 20 million US dollars that were originally supposed to be shipped to Europe and the United States are still stuck in Vietnam and cannot be exported. This series of order cancellations and postponements has brought huge panic to the textile market!
There is no work to do for rush orders that have not yet been cancelled, but for those that have been canceled!
Since orders are canceled halfway now, everyone is worried and afraid that their orders will be canceled as soon as they wake up. In order to avoid this situation, traders are rushing Rush the goods, if you can ship the goods one day earlier, then the day earlier!
“Our customer is from Turkey. Although our orders have not been canceled for the time being, we are afraid that the epidemic will become more serious. , if the customer cancels the order midway, then this part of the distribution can only be regarded as inventory, waiting for the opportunity to sell it in the future.” A trader revealed.
“Currently, gray fabric orders will not be placed if the L/C is not available; in the case of TT, even if the deposit is received, the goods must be controlled. High-quality customers can continue to place orders, while ordinary small customers will be postponed. . Special treatment can only be given in special times.” The trader said helplessly.
At the same time, the editor also learned that some small and medium-sized trading companies only cooperate with 1-2 customers. At present, customers have either canceled their orders or stopped placing orders, facing There is nothing to do. “We are sending samples every day and there is nothing to do. The countryEveryone has pressed the pause button. Our company’s business has been greatly affected, and we don’t know what to do next. “A salesperson of the company said.
The dyeing factory expedited production and shipped the goods before the customer canceled
If you want to have an order, but don’t want half of the order to be canceled by the customer, you can only ship the goods before the customer says “cancel order”.
There are not a few textile people who have this idea. Nowadays, many dyeing factories in the market are concentrated on all kinds of quick orders and urgent orders. Some textile companies even prefer to pay expedited fees to make products in a short time. Delivery. It is not uncommon for deliveries to be delivered at night or in the middle of the night.
But if the customer wants to cancel the order, is it really enough to get the goods as soon as possible? It is obviously unrealistic, even if the goods are delivered before the customer cancels the order. After all, the end of the fabric order does not end with the delivery of the goods. Whether the payment can be fully returned is the most critical. At present, most of the textile market is monthly settlement, three-month settlement, etc. Monthly settlement, or even half-year settlement, the fabric order is delivered, but the customer does not use it, and the payment will most likely be withheld in the future, or even postponed indefinitely.
Although the cancellation of fabric orders is force majeure due to the pneumonia epidemic. However, it will definitely waste the time and energy of textile people, occupy their working capital, and severely damage confidence. Therefore, textile customers are still needed Look at the market conditions rationally and avoid unnecessary losses that may be caused by placing orders. Similarly, the editor also “begs” the purchaser: You don’t have to place an order, but please don’t cancel it halfway!
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