In the first quarter of this year, the epidemic of New Coronary Pneumonia has spread at home and abroad. The production and operation of home textile companies have encountered unprecedented difficulties. The domestic and foreign market orders of the company have significantly reduced, which seriously affects the operation and benefits of the industry. Since the end of February, with the gradual and effective control of the domestic epidemic situation, the resumption of production of domestic textile enterprises has been gradually and orderly promoted, but because the spread of overseas epidemics continues, export-oriented home textile enterprises are facing a more severe test. Statistics show that the main operating indicators of the home textile industry all showed negative growth in the first quarter, putting pressure on the operation of enterprises.

01

Production scale down

Affected by the epidemic situation, the home textile industry's suspension time has been extended after the Spring Festival. After the gradual resumption of production and resumption of production, many enterprises are facing the shortage of orders, and the production growth rate has dropped significantly. According to data from the National Bureau of Statistics, in the first quarter of this year, 1,760 home textile enterprises above designated size achieved main business revenue of 33.2 billion yuan, a year-on-year decrease of 24.77%; the decrease was 4.95 percentage points narrower than the previous two months. The 223 key enterprises and 15 industrial clusters tracked by the association also showed negative growth. The main business income in the first quarter fell by 19.20% and 14.18% year-on-year respectively.

02

Declining domestic and external market demand

(1) Export

After the outbreak of foreign epidemics accelerated, many countries entered a state of emergency, commercial shutdowns, customs closures, export orders for home textile companies were postponed and cancelled in large numbers, rejection of rejects occurred frequently, and industry export pressures increased sharply. According to my country's customs data, my country's exports of home textile products in the first quarter of this year were 7.969 billion US dollars, down 11.07% year-on-year. From the perspective of export products, the export of towels, bedding and blankets has been more seriously affected, with a decline of more than 20%. From the perspective of the export market, the export volume of several of the world's major export markets has been greatly affected. Especially in the US market, the value of exports to the US in the first quarter of this year was US$1.868 billion, a significant decrease of 19.70% year-on-year. No order is the most important problem faced by export-oriented enterprises. Therefore, export-oriented enterprises urgently need social attention and corresponding assistance from the government, and provide targeted subsidy policies to help enterprises overcome difficulties.

(2) Domestic sales

Since the outbreak, most of my country’s physical retail stores have been closed. Since entering March, with the gradual and effective control of the domestic epidemic situation, the resumption rate of home textile merchants has reached more than 90%, but the business situation is generally poor. In the first quarter, the turnover of most merchants was less than half of the same period last year, and the overall growth rate of domestic sales in the industry fell sharply. According to data from the National Bureau of Statistics, the domestic sales value of the home textile industry in the first quarter was 23.213 billion yuan, a year-on-year decrease of 27.39%.

According to the results of the “Home Textile Distributors Survey Questionnaire” conducted by the Association in March this year, problems such as insufficient customer flow, lack of working capital, “salary” and “product inventory” put pressure on home textile distributors. In view of the fact that there are few customers in offline stores, some bedding and towel merchants use new models such as e-commerce, live broadcast, and small programs to attract customers, increase online promotion and sales, and use new business models to change physical stores. In the state of "waiting for customers", various measures were taken to minimize the losses caused by the epidemic. In terms of geographical distribution, merchants in Shandong, Jiangsu, Zhejiang, Shanghai, and Guangdong have recovered relatively well.

03

Industry operation quality and efficiency decline

In the case of insufficient demand and a sharp decline in production and sales, the operating quality and efficiency of home textile companies have dropped significantly, but there is a gradual improvement trend. According to data from the National Bureau of Statistics, the loss of 1,760 home textile enterprises above designated size in the first quarter of this year was 36.14%, an increase of 22.29 percentage points from the same period of the previous year, but slightly narrowed from the previous two months. The total asset turnover rate was 0.92, a decrease of 0.39 points from the same period last year, of which the inventory turnover rate was 1.46, a decrease of 0.63 points from the same period last year. The inventory turnover rate was 1.23, down 0.50 points from the same period last year. The total profit achieved was 1.107 billion yuan, a year-on-year decrease of 20.95%, but the decline was narrower than the previous two months. The cost-profit margin was 3.49%, an increase of 0.83 percentage points from the previous two months, and remained basically the same as the previous year.

In the normalized epidemic prevention and control, my country's domestic production and living order gradually recovered, and the macroeconomic operation was gradually on track. The huge potential domestic market space provides a guarantee for the development of the industry. Under the normalized epidemic prevention and control situation, the state has introduced a series of measures to accelerate the promotion of key enterprises, industrial clusters and professional markets to adapt and vigorously tap the potential of domestic and foreign markets. Policy measures have been gradually implemented and shown results, helping enterprises to overcome difficulties and restore vitality . At the same time, under the impact of the epidemic, a group of outstanding home textile companies actively responded to the challenges, changed their ideas in a timely manner, and actively explored. The risk resistance and development resilience of the company were steadily improved, and the industrial structure was continuously adjusted and optimized for the smooth operation of the industry and gradually Together to achieve high-quality development.