Global textile turnover is expected to drop by an average of 33% in 2020 compared with 2019, and textile manufacturers will face more severe challenges in the future.
The impact of the COVID-19 outbreak on the global textile value chain, the International Textile Manufacturers Federation (ITMF) targeted its members from April 16 to 28, 2020 , affiliated companies and associations conducted the third survey. The survey results showed that global order volume fell by an average of 41%.
The decline in orders in East Asia (-28%) is better than that in other regions (more than -40%). According to this assumption, this region was first hit by the COVID-19 crisis, but is currently also the first to recover.
In the past few weeks, most Chinese textile companies have significantly increased production capacity. Likewise, physical retail stores will reopen and consumption power in East Asian countries will pick up again. The survey pointed out that it remains to be seen what consumer behavior will be like in China, South Korea and other places once stores reopen.
Compared with 2019, global revenue is expected to decline by an average of 33% in 2020. In Europe, business turnover is forecast to fall by only 22%, a figure that is significantly better than the 33% noted in the ITMF’s previous second survey report.
At the same time, the turnover of companies in East Asia is expected to decrease by 26%, which is a larger drop than the 24% in the previous survey.
The survey explained: On the other hand, companies in Southeast Asia and South Asia are expected to have a significant deterioration in their business conditions. These areas were hit later by the COVID-19 epidemic, so the full impact of the epidemic has also been delayed.
Compared with 2019, turnover in Southeast Asia is expected to drop to -38% in 2020, and turnover in South Asia is expected to drop to -31%. Since the second survey, estimated turnover in Africa, South America, and North America does not appear to have changed much.
The main challenges cited by businesses include ensuring adequate liquidity, supply chain disruptions and uncertainty.
Opportunities include constantly thinking about diversified business opportunities, currently focusing on medical textile research and development; simplifying organization and production processes; accelerating the re-evaluation of existing supply chains; and accelerating digitalization , invest in sustainable production.
According to ITMF, even if the government has prepared various assistance policies, many companies have received little help. These can include loans with low interest rates and extended repayment terms, delayed tax payments, delayed social security assistance payments, short-time work schemes and reduced energy costs.
