No More Pay Leave For Over 3000 Employees? Before, There Is Baocheng, A Textile Enterprise With No Orders. It'S Too Difficult.

The negative effects of epidemic on textile and garment industry are increasing. As of April 20th, the world's largest cotton shirts manufacturer and export business group announced on the official website that after the 3 factories were closed by the end of July, another international giant had to give employees a long vacation.

The world's largest sports shoe leader, Bao Cheng, plans to pay unpaid leave to over 3000 employees.

Affected by the epidemic, Baocheng International Group, the world's largest sports shoe manufacturer, is responding to a comprehensive reduction in spending. In April 20th, media reports reported that the senior executives of Baocheng international group had considered that from June to the end of December, there were 6 days of unpaid leave per person in Taiwan area, with a monthly estimated salary of more than 3000 people. In addition to the implementation of unpaid leave, the chief executive of the deputy general manager, including Cai Peijun, the chief executive of the group, will be reduced by 10%. It will be the first time in the 51 years since the founding of Baocheng international group to pay unpaid leave and pay cuts.

However, according to sources, the above plan is still in the stage of deliberation, and the follow-up must be agreed by the trade union consultation, and the staff sign the consent agreement and so on two levels.

Public information shows that Taiwan Baocheng International Group, a listed company in Taiwan, mainly produces wholesale casual sports shoes, clothing and accessories. It is the largest group of sports shoes and casual shoes in the world. It is Nike, Adidas, Reebok and New. Balance, Asics, Timberland, Converse and Rockport surpassed 50 famous international brands in the world. They are widely distributed in Taiwan, mainland China, Indonesia, Vietnam, the United States and other regions. They produce over 170 million pairs of sports shoes in the year. The global market share of famous brand sports shoes and casual shoes exceeds 15%, and the average of 5 pairs of sports shoes in the world is 5. 1 pairs of shoes are made by Baocheng group.

It is reported that Baocheng group has 350 thousand employees worldwide, and the current measures to be taken are confined to Taiwan and related areas. As for Vietnam, Indonesia, mainland China and other production base staff, they are not included in the implementation targets. According to the results of the financial report, Baoji International Group achieved 59 billion 461 million yuan in operating income in the first quarter, a decrease of 22.4% compared with the same period last year, a record low in the past six years.

The decline in textile exports in the first quarter was higher than that in 2009 after the financial crisis.

According to Chinese customs statistics, in the first 3 months of 2020, China's trade in goods exported 3 trillion and 330 billion yuan, down 11.4%; imports 3 trillion and 240 billion yuan, down 0.7%; trade surplus 98 billion 330 million yuan, reduced 80.6%.

In the first quarter of this year, the total export volume of textiles and clothing totaled 45 billion 264 million US dollars, down 17.7% from the same period last year (15.9% in the year before RMB). Among them, the total exports of textiles amounted to 22 billion 694 million US dollars, down 14.6% from the same period last year (12.7% in the year before RMB), and the total export volume of clothing was 22 billion 570 million US dollars, down 20.6% compared with the same period last year (18.9% in the year before RMB).

From the product category, industry exports continue to show differentiation. According to customs statistics, exports of textiles including yarns, fabrics, home textiles, industrial and other manufactured goods increased by 5.3 percentage points over the first two months, while the decline in downstream clothing exports continued to increase by 0.6 percentage points over the first two months.

In the month of March, China's textile and clothing exports amounted to US $15 billion 430 million, down 12.9% compared with the same period last year (10% in the year before RMB). Among them, exports of textiles amounted to 8 billion 922 million US dollars, down 4.9% from the same period last year (1.7% yuan in the same period last year), and clothing exported 6 billion 508 million US dollars in the same month, down 22% compared with the same period last year (19.3% in the year before RMB).

The analysis of China Textile Federation Industrial Economics Research Institute pointed out: from the perspective of the export of textile and clothing in the past years, the decline of China's textile and clothing exports even exceeded the 2009 after the financial crisis. According to statistics, in 2009, the export volume of the whole country decreased by 16%, and the export of textile and clothing decreased by 10.07%. In the first quarter of 2020, the export of goods and clothing decreased by 13.3%, and the export of textile and clothing dropped to 17.70%.

The Ministry pointed out three difficulties for small and medium-sized textile enterprises

Last week, the State Council joint defense joint control mechanism held a news conference to introduce private enterprises and small and medium-sized enterprises in an orderly way to resume work and resume production.

At the meeting, Xu Kemin, director of the Ministry of industry and information technology industry policy and regulation, introduced the rapid spread of the current international epidemic, and the textile industry, especially small and medium-sized textile enterprises, reflected some difficulties.

1, insufficient demand

From the domestic perspective, the retail sales of clothing, shoes and hats and needle textiles in the domestic market exceeded 31% from 1 to February. Internationally, since March, a large number of export orders have been delayed or cancelled, and new orders have also been decreasing significantly. According to the latest survey results of more than 100 key enterprises in China Cotton Textile Industry Association, the proportion of enterprises with insufficient orders is 63.6%.

2, the pressure of steady employment in the industry is increasing.

The pressure of order reduction is being carried out along the industrial chain to the upstream, which will have an impact on the normal operation of the textile industry chain, and the employment situation in the industry is becoming grim.

3, enterprises reflect financial constraints.

Affected by the decline of orders and withdrawal, the inventory backlog of raw materials and finished products of textile enterprises is increasing, especially in the chemical fiber industry. Because continuous production can not be stopped, the inventory pressure is occupied and the amount of capital is also increasing.

Pressure will remain in the two quarter

The alliance analysis of China's textile international capacity cooperation enterprises believes that in the two quarter of the year, China's textile industry is facing severe challenges in terms of "stable foreign trade" and "steady employment". The sudden cancellation or delay of overseas orders has brought high uncertainty to the operation of domestic textile enterprises, which have been resumed and reproduced, which are mainly embodied in various practical problems such as market demand, inventory and cash flow. It is necessary for the government, enterprises and industry organizations to make joint efforts and take various effective measures in time to win the "survival war" in the two quarter and enhance the resilience of the industry's future development.

Zhao Ping, director of the International Trade Research Institute of the China Council for the promotion of trade, believes that although the foreign trade situation is improving in the first quarter, the pressure of future growth is still great. Affected by the global epidemic, external demand is still weak. In particular, China's major trading partners, the European Union and the United States, have become the worst hit areas. Some foreign trade enterprises have postponed or cancelled orders, and new orders have been affected. The export of consumer industries has been greatly impacted in the short term. The foreign trade industry is still in the contraction Zone, and the challenges it faces are still enormous.