The Global Epidemic Turning Point Is Not Yet Available. The Silk Industry Chain Examination Is Currently Cross-Border Self Rescue.

Since the beginning of 2020, the outbreak of the new crown pneumonia has greatly affected people's production and life, and the silk industry has inevitably been impacted. Since the effective control of the epidemic in China, silk enterprises have resumed production and resumed production, and the changes in the international epidemic situation have led to the reduction, extension and cancellation of foreign orders. Various problems are coming in. The silk industry is facing severe challenges.

Epidemic impact

Enterprises face survival test

With the spread of the epidemic in the world, China's silk industry is experiencing a severe test.   According to a survey conducted by the world's silk net, "the new crown epidemic survey of the world's silk industry and consumer market trend" shows that since 2020, the price of 3A grade raw silk has dropped to 30% yuan from 270 thousand yuan / ton at the beginning of the year. The price of raw silk has dropped to nearly 270 thousand yuan per ton. Silk prices continue to decline, fabric production enterprises are facing orders shortage, unable to continue production, reeling enterprises inventory increases, affecting the spring Cocoon acquisition market. To this end, many enterprises and organizations called for the purchase of reserve silk to cope with the turmoil in silk prices. Faced with the over expected impact of the epidemic on silk enterprises, many silk enterprises have adopted measures such as "four rest three", "rest and holiday" and "salary reduction" to deal with the crisis; some silk enterprises have indicated that the existing orders only meet the production by the end of May. Exports to Europe, the United States and Japan and South Korea's orders are more delayed or cancelled, foreign trade enterprises are actively undertaking Southeast Asian and African orders, or domestic sales; some of the enterprises with sufficient liquidity are choosing to continue production.

" During the off-season, sales of silk were on the low season. The main loss came from rent and staff salaries. Domestic trade enterprises above Designated Size expected to lose 200 million yuan. In the future, the main challenge facing domestic trade enterprises is the suppression of overall consumption, which will affect the sale of silk, and the expected sales will fall by more than 10% throughout the year. Silk belongs to the luxuries in textile products, not necessities of life. The shrinking of overall consumption will affect the consumption of silk.   The scale of domestic silk enterprises is relatively small, traditional enterprises are mostly, the leverage ratio of capital is low, and the ability to resist risks is strong. It is expected that the epidemic will not lead to large-scale collapse of domestic silk enterprises. "   Yu Yuenan, vice president of China Textile Commerce Association and President of silk Specialized Committee Analysis said.

In the Guangxi Zhuang Autonomous Region, the impact of the epidemic has been transmitted to the sericulture industry. Farmers began to unsubscribe small silkworms. The small silkworm breeding households began to reduce the total number of silkworm eggs, and silkworm farms began to reduce silkworm eggs production. The silkworm production in the first half of the year was reduced by 20%~30% compared with the same period last year, and silkworm rearing silkworm decreased by 20% compared with the same period last year. Silk production and operation are more difficult in the former sericulture industry. Due to the impact of the epidemic, China's silk main selling market has basically stopped imports, and the domestic silk enterprises have gradually reduced or cancelled orders. After March 20th, the silk sales of reeling enterprises basically stagnated.   According to the monitoring data of Guangxi cocoon and silk industry association, the production volume and sales volume of factory silk in 2020 1~3 decreased by 28% and 33% respectively, and sales fell 31% year-on-year. The stock pressure of raw silk is large, and the average stock of raw silk is generally estimated to be two months or so. If production is continued according to current production, some enterprises will not be able to continue. At present, Guangxi silk reeling enterprises are going to take self rescue by passive means of reducing production and limiting production. To prevent risks, this year's two trading markets also compressed cocoon silk pledge financing business, and without sales revenue, the filth enterprises' reserve funds basically dried up, and the pressure of purchasing funds for spring cocoons was huge.

As the four largest sericulture production base in China, Nanchong has also been affected: Nanchong silk export enterprises have been cancelled and no orders can be made. As time goes on, some silk enterprises may stop production and stop production. At the same time, Nanchong's domestic silk enterprises are facing the problem of shutting down and shutting down production due to poor sales channels, increased inventory backlog and difficulties in capital turnover. At present, Nanchong silk enterprises are faced with difficulties in capital turnover and high cost of employment. Analysis of the industry, If the business is difficult to stop and stop production, the number of laid-off workers will continue to increase. This will not only increase the pressure of employment in the society, but also increase the cost of waiting for the enterprises. From the current situation, the treatment of the unemployed workers during the ~3 month epidemic situation in February has not been fully solved. If the enterprises stop working longer and the number of affected persons will be greater, the enterprises will bear the burden. Being tested.

Inflection point not yet present

Practicing internal strength is difficult.

There is no turning point in the global epidemic crisis, and supply chain disruption has seriously affected the sustainable development of the silk industry. Industry experts call for With the improvement of the domestic epidemic situation, China's silk industry should establish strong confidence, seek opportunities in the challenges, innovate the traditional mode, standardize operation management, expand sales channels, enhance brand concept, and enhance the rapid response mechanism of the market. Facing the uncertainty of the current market, we hope that the industry will unite and fight against the epidemic situation and stabilize the production and trade of the silk industry.

Yu Yuenan said that with the large-scale outbreak of the international epidemic, China's overall recovery of personnel turnover has been delayed, resulting in the consumption recovery being affected, and the loss of domestic silk production and marketing enterprises is expanding. Shrinking enterprise expansion and developing online sales will become an important strategy for domestic silk enterprises this year to reduce losses and tide over difficulties.

Wang Xiaohui, chairman of Chongqing cocoon and silk industry association, and chairman of Chongqing Hong Mei Da Xin Xing Industrial (Group) Co., Ltd. It is believed that enterprises should "save themselves" in the face of the current market. "We should strengthen product category docking, multi-party communication, and develop innovative products and customer groups that are suitable for multiple regions, multi-level, multi-attribute, and price ladder. In view of the current market of medical products, the market is unlikely to form a new peak of silk consumption because of its small size, no price advantage, no consumption value and time and space constraints.   In view of the changing global epidemic situation, enterprises should do their best to survive effectively, reduce investment expansion, and even do not invest. Wang Xiaohui said.

"Enterprises should change their sales patterns. The reconstruction of consumer relationship under the Internet environment is based on brand, scale of production and stricter product quality control system. Secondly, with the change of product sales and innovation mode, the cross cultural industry cooperation is carried out with the long history of traditional products, so as to expand brand awareness and achieve win-win results under the premise of harvesting benefits. The scope of product services, online standardized customization + offline personalized customization business, dig deep segmentation demand market. Zhong Bingzhang, director of Chengdu Shu Brocade embroidery Museum and executive director of Chengdu Shu Jing brocade Embroidery Co., Ltd.

Faced with the impact of the epidemic on the silk industry in Guangxi, the Guangxi cocoon and Silk Association proposed the corresponding measures to alleviate the problem. It is suggested that the reserve of raw silk should be launched as soon as possible. It also requires the Guangxi Zhuang Autonomous Region to start the raw silk reserve mechanism, allocate special funds to collect and store raw silk, protect the market liquidity and help cocoon silk processing enterprises maintain production and operation. It is suggested that the government departments should coordinate financial institutions and set up a special emergency loan mechanism for cocoon silk during the epidemic period, with a focus on increasing the loan amount of cocoon silk processing enterprises. Discount, ensure the normal operation of cocoon and silk processing enterprises and purchase silkworm farmers fresh cocoons; it is suggested to integrate poverty alleviation funds and establish special funds for cocoon purchase subsidies in poor areas. Through subsidizing the interest and direct subsidies of reeling enterprises, we should purchase cocoons from poor areas and file poor households in order to ensure that the poor families of the mulberry and silkworms are out of poverty on schedule. The tax burden and social security cost will reduce the operating costs and burdens of enterprises and help enterprises tide over difficulties.

The Guangxi cocoon and silk association has put forward hope to enterprises: "Enterprises can arrange production and operation activities according to specific circumstances, improve their quality through improving production quality by using production cuts and production restrictions, while guiding local sericultural farmers to improve the quality of cocoons and seek long-term development of enterprises."

Honorary Secretary General of the international silk union, honorary chairman of Hangzhou Oriental silk culture and brand research center, Fei Jianming "Chinese silk enterprises have been able to produce masks and protective clothing to help foreign silk enterprises in need, and jointly discuss and plan how to build a better world silk industry after the epidemic."