The COVID-19 epidemic has been unfavorable in the textile and fashion industries around the world with tremendous damage to businesses, currently unable to be quantitative because the virus continues to spread and can seriously affect employees. When global organizations call for brand protection workers, businesses are busy adjusting business models to cope with crises.
The Government has implemented and is continuing to implement emergency measures, including closure of public places, limiting travel and assembling in public places, and establishing inspection and quarantine facilities.
Meanwhile, companies that are busy doing the closing of part or the entire store, ' choosing to work at home ' for employees, resolving cancelled or postponed export orders, exploring material sources other than China and encouraging customers to shop online.
Retailers with a more diversified supply base will be exempt from the impacts of the epidemic as they can transfer the volume from one supplier to another, providing some protection against disruptions in China.
Moody's Investor Services adjusted its forecasts for most Asian Pacific countries (APAC) based on the possible impact of the epidemic. The risk to APAC inevitably tilts the downside, which is from European and American economies much weaker than the present. The forecasts emphasize no growth in Japan and Singapore, and slower growth in China.
Countries such as the United States, Germany, Italy, France, Great Britain and Japan, have taken a range of measures to overcome the disruption of economic activity caused by the epidemic. These include lowering the bank interest and cash reserve, the ban on debts for small, small and medium enterprises (MSMEs), debt repayment and tax payment without interest, new demand lending and credit guarantees.
The clean Clothing campaign is based in Amsterdam, the International labour Rights Forum and the Rights Association of Workers, both based in Washington, D.C. and the Maquila Solidarity Network based in Toronto have urged all clothing brands to take proactive steps immediately in order to protect workers from producing their goods in advance of the epidemic.
The closure of factories in many countries, such as Sri Lanka, Bangladesh, Indonesia, Albania and those in Central America, whether temporary or fixed are strong in the low-paying apparel workers, especially those immigrants who are not able to have local social networks to rely on and may face additional restrictions or foreign papers. The situation is particularly severe for many weeks in Cambodia and Myanmar, a joint statement of these organizations said.
The closure of the shopping spaces and joint counsel of Governments to avoid public spaces has crippled the demand, affecting the sale of garments. A number of retailers in the US have temporarily closed their stores for a minimum of two weeks since 17 March and will pay their employees ' wages during the downtime. These people include PVH Corp, Vince Holding Corp, Chico's FAS, Tilly's, Guess, JC Penny Company and Walmart.
While the stock prices of apparel and footwear brands and retailers include Nike, Under Amour, Levi Strauss, Skechers USA and Crocs in the United States; Quick Retail in Japan, Adidas Germany; Aeffe SpA of Italy; H & M của Thụy Điển; Anta Sports Products Ltd. in Hong Kong; And Kering, France has made a recent impression, the prominent ranking agencies have lowered the growth forecast of gross domestic product (GDP) for several countries, including India.
In fact, the stock prices of textile companies in the United States, India, Europe and Hong Kong have witnessed a two-digit reduction rate for two weeks from 2 to 17 months. The stock price of Indian textile retail companies has dropped sharply. These include Indian Welsasta, Indo Count Industries, Page Industries and V-Mart Retail.
The Association of Indian Clothing Manufacturers (CMAI), predicts an economic catastrophe, said most apparel companies in this country will face the 30% reduction in their revenues and profits, and the industry will see unemployment levels of 10-15 percent if the epidemic continues to , lack of working capital will not allow companies to pay taxes, repay banks and other statutory fees.
Trade agencies across India, including the Association of Tiruppur Exporters (TEA), the Indian Cotton Textile Export Promotion Council (TEXPROCIL) and the Indian Textile Industry Union (CITI), have asked the government to intervene emergency policy for the textile industry sector by providing a relief package , the ban on repayment for subsequent fiscal and exempted all raw and intermediate raw materials from anti-devalue and basic customs duties.
CITI has also proposed that cotton and cloth fibers are immediately included in the tax reduction and central Tax Program (RoSCTL), the Interest-balancing program (IES) and the India Commodity Export Program (MEIS) to prevent job loss for millions of people in handloom, weaving machines and spinning industries.
Meanwhile, India has banned the export of all breathing apparatus, disposable surgical masks and textile materials specific to masks and overalls to avoid any shortage of personal protective equipment for health care professionals. Many apparel brands and Indian e-commerce companies are taking measures such as ' work at home ' and evaluate previous revenue goals.
State Bank of India (SBI) has published an urgent credit base for those borrowers affected by the COVID-19 epidemic. The maximum loan is 200 dollars or 10% of the current fund-based cap that can be applied in accordance with this article. The facility can be used until the end of 6 months and will especially target the borrower MSME.
The Indian Texpreneurs Federation (ITF) headquartered in Coimbatore is getting more market information from its members and sharing it with entrepreneurs to allow them to make production calls when buyers from Europe and the United States are postponing or canceling orders.
Pakistan's textile industry, which has been influenced by the massive cash flow crisis, is very annoying because of the epidemic when overseas buyers are cancelling and delaying orders. According to the Association of Pakistan Textile Exporters (PTEA), this situation is leading to a large industriochemical status, exports decreased dramatically and the level of unemployment is not controllable.
The epidemic has also influenced export and delivery of Central American garments. Nicaragua sees before and reduces exports throughout the year, while Guatemala is witness of delays in garment shipments and material shortages.
The turkey media report says many global brands, including Superdry, Inditex, H & M, Hermes-Otto, Debenhams, and Ralph Lauren, have moved orders to Turkey that the country must increase yields, especially summer collections.
A number of global fashion events, including the U.S. Council of Fashion Designers (CFDA) award 2020, the April yacht exhibition of Giorgio Arman, the 5th month holiday exhibition of Prada and fashion weeks in Shanghai, Melbourne, Beijing, Seoul and Tokyo, were postponed.
Because the United Nations Trade and Development Conference predicted that the slowdown in the global economy caused by the epidemic would consume at least 1 trillion dollars and global direct foreign investment could be reduced by 5-15%, which is a ' waiting and tracking ' situation for most countries.