How Can Textile Enterprises Save Themselves Under The Epidemic Crisis?

- Apr 23, 2020-

     Since the beginning of the year back to work, textile enterprises worldwide order cancellation or delay shipment is more common. The world's leading fast-fashion brands, such as ZARA of Spain, POLO of the us, C&A of the Netherlands and UNIQLO of Japan, have delayed or cancelled orders. The cancellation of a large number of orders has brought a huge crisis to the enterprise. How to save themselves has become a big problem in the development of textile enterprises.

Firm confidence in the value of the industry

    Entrepreneurs need to convey crisis awareness to the entire enterprise. Only in this way can we unite as one, think in the same direction, and work hard in the same direction. Everything will be easier, including reducing staff and cutting salaries to tide over the difficulties.

    At present, we in addition to adjust the good mentality, but also from two aspects to discuss: first, the innovation of marketing model; Second, product line stretching.

    The first is to innovate the marketing model. Take flax as an example. Flax is an ancient industry. It cannot completely overturn the traditional mode, but can only constantly integrate new content to make it full of new vitality.Such as:online and offline interaction,export and domestic sales at the same time.

    The second is to stretch the product line. On the one hand, stretch the length of product line: flax yarn, linen fabric enterprises in the end market development there is a big opportunity; on the other hand is to broaden the range of product lines: increase the design and marketing efforts, while covering clothing, home textiles, cultural and creative products and other consumer goods.

Self-help, mutual aid and government help

    As for how to resist the current crisis, I think it mainly depends on three aspects: self-help between enterprises, mutual rescue between enterprises and help from the government.

    In the crisis, enterprises should first stand on their own feet, that is, self-help. Self-help programs are many, the most direct is to protect the purse strings, various ways to reduce costs. The enterprise needs to establish the group crisis consciousness and tide over the difficulties together. But that's not enough. It's not enough for everyone to protect themselves.

    Therefore, we propose that while enterprises stand firm and save themselves, they should take a long-term perspective, take the initiative to help each other, mutual assistance, mutual rescue, and let the industrial chain move together. Mutual aid is where each company helps its upstream suppliers and downstream customers. Enterprises are so rescued, the industrial chain will not die, the economy can gradually recover vitality.

    In practice, enterprises can release accounts to customers for 30 days, which can be extended to 60 days or even 90 days. Of course, this must be based on mutual trust. Payment to the upstream seller, should be paid to pay, can not use the epidemic as an excuse to delay, default. If each company keeps its promises in this way and supports each other in the industry chain, it can get the money and products flowing. On the other hand, if companies are too preoccupied with themselves and go into a state of shock or vegetative state, they may not wake up until the economic spring.

    In addition to self - aid and mutual aid, the government's policy of supporting enterprises is also indispensable. So how can the government help? We might as well refer to the practice of some countries in Europe and the United States. In the financial interest rate cut, reduce interest rates, to ease the enterprise interest repayment pressure; Tax abatement and exemption. More direct and effective are financial subsidies.