Textile and garment industry is a traditional pillar industry in Zhejiang Province. It is not only a basic consumer goods industry to create a better life for the people and ensure the people's livelihood, but also a fashion consumption industry. Hangzhou Linping District Fashion Industry Federation recently conducted research on more than 40 enterprises through field visits.

Impact of epidemic on fashion industry

1. Serious impact on production plan

Due to the pressure of reducing upstream orders and the requirements of epidemic prevention and control, many production and processing enterprises are in the state of half vacation and half office, which seriously affects the production plan of enterprises, and the completion rate of target performance continues to decline this year. The capital waste caused by factory shutdown is huge, and the cost pressure of enterprises is increasing every day. Many small, medium-sized and micro enterprises can't afford it and can't escape the fate of bankruptcy.

2. Significant impact on logistics, transportation and supply chain

Due to the epidemic situation in many parts of the country, the wholesale markets of noodles and accessories such as Haining and Keqiao are controlled by the epidemic situation and cannot deliver goods. The imported fabrics are stranded in Shanghai port, the raw and auxiliary materials of enterprises cannot be in place in time, the market supply is insufficient, the production cycle of many garment enterprises is affected, and the instability of the supply chain is further increased. Even after the commencement, it is difficult to deal with it in time, which brings great uncertainty to the operation of the enterprise. In addition, the strict control of express delivery has brought a lot of serious impact on the performance of express delivery in many regions.

3. The consumer market is depressed and the inventory of spring and summer clothes is serious

At present, it is the peak season of clothing sales in spring and summer. Affected by the interruption of logistics transportation and goods supply, the sales of spring and summer clothes are almost suspended. The new style of spring and summer clothes that should have been used as spring and summer clothes is likely to pass the peak season and have to become a backlog of inventory. In addition, due to business stoppage, shopping malls closing and other reasons, many offline stores of garment enterprises are closed or in a state of no consumption, and the offline sales performance of enterprises is declining rapidly, which will further affect the overall operation and management of the company. How to ensure the income of employees and how to stabilize the relationship with suppliers and franchisees are a series of challenges faced by enterprises.

4. Shortage of front-line workers and high-tech talents

Affected by the epidemic, the original talent exchange with international talents or international enterprises cannot be carried out as scheduled. The obstruction of dispute resolution channels in the business process of cross-border e-commerce enterprises will further affect the reputation of the brand. According to the requirements of epidemic prevention and control of relevant departments, the flow of personnel is limited, resulting in insufficient labor employment.

5. Scientific and technological enterprises have a certain demand for funds

Affected by the epidemic, the business of the garment industry can not be carried out normally. Due to the increase of employees' wages, procurement of raw and auxiliary materials, payment of house rent and payment for goods from suppliers, many garment enterprises are under too much pressure, so the planned digital transformation project of intelligent workshop has been suspended. For software enterprises that provide customers of downstream garment enterprises with advanced standard working hour system, a new generation of retail store management tools, transformation and upgrading of intelligent chemical plants and other services, they face the problem of shortage of capital chain and need more working capital to transfuse blood for enterprises.

6. Strengthening the interaction and exchange between enterprises is the common demand of enterprises

Due to epidemic control, enterprises have less opportunities to participate in salons, training and other exchange activities. Even small-scale exchanges between enterprises can not be carried out normally due to site and other problems. Enterprises are eager to promote cooperation through more exchanges among peers.

Response measures taken so far.