Since 2020, the epidemic has been repeatedly and more serious, followed by a dramatic upheaval in the foreign trade industry, greatly affecting China's foreign trade export industry. As international trade was greatly affected by the epidemic overseas, Yiwu foreign trade export market received the impact, the demand for Yiwu export goods decreased, of which, Yiwu export clothing industry has been greatly affected.
There are many industries affected by the epidemic in Yiwu, of which the apparel industry is the most representative. During the continuation of the overseas epidemic, the total exports of the garment and apparel industry fell precipitously. 2020 Yiwu exports totaled 36.43 million yuan, down about 50% and 60% from the previous 55 million yuan in 2018 and 72 million yuan in 2019.
The impact of the overseas epidemic on Yiwu export clothing and apparel industry is mainly reflected in the following aspects.
First, foreign demand for Yiwu export clothing and apparel has been significantly reduced, resulting in a large backlog of Yiwu's clothing and apparel inventory.
The epidemic led to foreign businessmen can not leave the country, can not buy goods in Yiwu. At the same time during the epidemic, overseas market demand shrinks, a large number of people out of work, spending power decline, want to spend less money on the idea; in addition, many people can not leave home, the demand for clothing fell. Yiwu export clothing and apparel vendors accumulated in the inventory of a large number of goods, can not sell goods in a timely manner. The cost of storing goods and the reduction in liquidity of funds, the vendors caused irreversible losses.
Second, the overall cost of Yiwu clothing and apparel products rose, resulting in reduced profit margins and rising loss rates. The cost of raw materials for the export of clothing and apparel industry rose during the epidemic, so that Yiwu export profits decreased by 64.4% compared with last year.
In addition to the cost of raw materials for goods, the price of the logistics industry has also gradually increased. As China recovered from the epidemic faster, foreign factories shut down and the demand for import of essential goods shifted to China. Yiwu export transport demand increased significantly, and the cost of shipping went up. Lease container from a 2,000 U.S. dollars rose to a staggering 10,000 U.S. dollars, and even more began to hoard a large number of containers and from which to gain.
In such a situation, most foreign traders mainly rely on old customers to maintain their survival. According to a number of Yiwu local clothing and textile industry vendors revealed that during the ravages of the epidemic abroad, almost all orders are from the old customers who have established a trusting relationship.
At the same time, Yiwu clothing and apparel exporters are also trying to increase sales through domestic and foreign e-commerce channels. Most of the young local vendors in Yiwu consider using the most convenient and popular e-commerce platform for online sales. At present, well-known e-commerce platforms such as Amazon and Ali Express are well-developed e-commerce channels, which have brought marketing opportunities to countless merchants in the Yiwu export industry.
This long-term overseas epidemic to Yiwu export clothing industry has brought a large degree of negative impact on the demand for Yiwu export goods has declined, Yiwu export clothing and apparel foreign traders have therefore summed up the experience and lessons learned. Although the negative impact caused by the epidemic is not reversible, but the epidemic will eventually pass, Yiwu foreign trade export market will also be out of the shadow.