At the end of 2019, a sudden epidemic gave everyone a blow. The epidemic control has brought the national economy to a halt, and the operating rate at the beginning of February 2020 was only 30%. Due to restrictions such as the epidemic control and traffic blockade, in the early stages of recovery, due to the impact of workers being unable to arrive at their posts and the upstream and downstream chains to accept obstacles, many companies were unable to deliver their orders on time. The overseas epidemic broke out in mid-March. European and American countries began to control the epidemic. Foreign trade orders were cancelled in large numbers. Workers were in place but there were no orders to do. Then the operating rate dropped sharply, and many companies began to restrict production or even take holidays and lay off employees. Both ends of the supply have been hit successively, which has dealt a huge blow to the entire textile industry. Raw materials have been declining, inventories have been rising day by day, and capital turnover has been ineffective. These mountains have crushed many textile companies.

In 2020, under the influence of COVID-19, the apparel industry will face unprecedented challenges, and the number of loss-making companies will increase significantly. Due to the global outbreak of the epidemic, the epidemic has had a huge impact on textile and garment factories, directly leading to a rapid decline in terminal consumption and serious inventory accumulation; textile and clothing orders are getting smaller and smaller. During the epidemic, foreign textiles are in a state of halt and orders are large. Partial cancellation or postponement of delivery has greatly increased the number of loss-making companies.

Since the second half of 2020, COVID-19 in India has gradually heated up. Many large export-oriented textile companies cannot guarantee normal delivery due to the epidemic. European and American retailers have transferred a number of orders originally produced in India to made in China. At the end of last year, some manufacturers have stated that the number of transfer orders received will be scheduled to the second quarter of 2021.

Because of the COVID-19 outbreak in India, foreign orders have been transferred to China, and the domestic apparel industry is in short supply of labor, and labor costs have risen sharply. Because of the global epidemic, the prices of clothing raw materials have also been rising. The epidemic has led to high material prices and high labor costs in the apparel industry in 2021. The supply of labor is in short supply and the delivery period is tight. These are major production issues. I hope that everything can return to normal prices after the epidemic is over.