Looking For Opportunities In Crisis! Survival Guide For Textile Enterprises Under Epidemic Situation

"We must make the best efforts, but prepare for the worst." Academician of the Chinese Academy of engineering and Chen Wei, a researcher at the Academy of Military Medical Sciences, academe of Military Science

A sudden outbreak of a new coronavirus pneumonia has broken the tranquility of the Spring Festival in 2020. It should be a time for family reunion, but it has become a battleground for the whole nation to fight epidemic diseases. Due to the impact of the epidemic, the major textile cluster market and textile factories have to postpone the resumption and opening of the market, which may affect the whole industrial chain of the textile industry to a certain extent. In 2020, the production time of traditional textile and clothing will be squeezed in the peak season, and after the resumption of work, the order will be reduced and the operating rate will be insufficient.

Our textile enterprises must establish a sense of urgency and overall situation before the outbreak. On the one hand, they recognize and accept the impact of the epidemic on the market. On the other hand, they should also actively respond to the problem of making more comprehensive deployment decisions, upgrading and tackling difficulties in a multi-channel and multi-dimensional way.

First, entrepreneurs learn central documents.

For enterprises, you need to reserve at least 3~6 months' cash. If there is no cash flow backing, many small businesses may go bankrupt. Especially for textile and garment enterprises, almost all the cash flow has been put into the purchase, but because of this epidemic, the next sales volume will be greatly affected, and cash is hard to return in a short time. Under the epidemic situation, we need to cut costs, strip off bad businesses, eliminate losses and no quality growth, ensure cash flow, and make enterprises more competitive. Recently, central and local governments have issued a series of fiscal and taxation policies to help and support SMEs to build confidence and tide over difficulties, to ensure the normal operation of enterprises and maintain stable and healthy operation of the economy.

For details, see "boost people's heart!" To alleviate the financial pressure of small and micro enterprises, the central bank put 1 trillion and 700 billion in two days. The full text is coming! Shaoxing supports the 20 policy proposals for SMEs to tide over difficulties.

Two, layout! Looking for opportunities in crisis

All things have two sides. Crisis does not mean disaster. Excellent entrepreneurs can even look for opportunities in crisis. But the "machine" in the "crisis" will not come out of nowhere. It needs to "know" and "seek", and take the initiative to explore and consider comprehensively. Leng Youbin, chairman of Feihe dairy industry, once said, "good entrepreneurs should be predictable, adjust their strategy and resource layout quickly according to market experience and sensitivity."

In 2003, SARS raged, like 2020 of today, many countries issued travel alerts to China, and businessmen who came to China to do business declined sharply. Many foreign businessmen chose to trade online because they could not come to China. At that time, the website of the authority of the textile industry - the global textile web access rose, the growth rate of membership registration increased by 2.53 times, and the volume of trade reached by customers through online information on the global textile network exceeded US $2 million. Jiangsu Changshou City Zhongcheng Knitting Co., Ltd. signed a foreign trade contract with a North American customer through online information. Its initial turnover amounted to 400 thousand US dollars. The online trading volume of Shaoxing Xinglong textile Xinghui Textile Co., Ltd. is 1.6 times larger than that of the same period last year. Statistics show that during the SARS epidemic period, online trade has increased by nearly five times than usual. Some hesitant foreign customers have also reduced orders for foreign trade by issuing orders online.

During the period of SARS, the realization of the diversification of foreign trade market is worthy of reference from our textile enterprises, such as promoting new trade mode, giving full play to the role of e-commerce, carrying out online promotion and online transactions, striving to improve export performance rate, actively strengthening contacts with customers through fax, telephone and electronic mail, maintaining or resuming business in a short time; actively using various information network platforms and foreign intermediary agencies, expanding online publicity and promotion efforts, so that foreign trade enterprises can win more orders.

This sudden outbreak may be an overwhelming force for all textile enterprises. The adjustment of the industrial structure, the "e-business" of the trade mode and the "off-site trading mode" will be popular. Of course, the "retaliatory rebound" after the end of the epidemic is also expected. Finally, Peng Jianfeng, chairman of China cornerstone management consulting group, concluded the 64 character policy of small and medium enterprises:

1. strengthen confidence and self protection;
2. hold together to keep warm and tide over difficulties.
3. telecommuting, flexible work;
4. task subdivision, comprehensive incentive;
5., cut expenditure and protect cash;
6. maintain customer sentiment and bind large customers.
7. flexible employment and harmonious labor and capital;
8. insight into the situation and the big epidemic.

May the textile enterprises struggling to survive in this epidemic go through this gate of hell, and our spring will surely be before us.