Now there are many holidays in factories here in Zhejiang. Why?

Zhejiang, Fujian, Guangdong, these coastal provinces, export-oriented economy accounts for a large proportion, and many enterprises rely on foreign trade orders to survive. Affected by the overseas epidemic in 22, the current order volume plummeted, and even individual factories did not have an order for several months. At this time, under the pressure of cost, it is just a "helpless move" to deal with the current difficulties by choosing to temporarily stop production and have a holiday for employees!

a friend of mine forwarded a message to me two days ago, an electronics company in Zhuhai, whose business relies heavily on overseas orders. Nowadays, due to the epidemic situation and the global economic downturn, it has stopped production for more than half a month. At this time, the company had to decide that all employees should have a holiday for half a year (April 2th to October 8th).

This phenomenon still accounts for a certain proportion among some private enterprises in Zhejiang, Guangdong and Fujian! For enterprises, temporarily choosing to stop production and have a holiday is a coping strategy adopted because of the reduction of orders. Wait until the future, after the epidemic, the market retaliates and rebounds, and there is still a chance to resume production and make profits!

next door to my hometown, a young man is like this. He used to do purchasing in our enterprise, earning 7, to 8, yuan a month, and his life is very moist.

But now, the factory has stopped working, but there are no layoffs, and almost half of the employees are in a state of "leaving their jobs without pay". Only a "minimum" salary of more than 2, yuan per month is not enough to support the family! I had to go to our chemical plant and work the night shift temporarily to earn money to support my family!

In February, an epidemic broke out in China, making it difficult for the factory to resume production, so it was difficult to send or not to ship. In March, an overseas epidemic broke out, a large number of orders were cancelled, and goods could not be delivered; Just last week, the tide of foreign trade refunds began to appear. Foreign trade factories have received emails from customers for delayed shipment one after another, and orders from the United States, Britain and Italy are being cancelled one after another. It has been circulated in a circle of friends, and is praised by the industry as one of the world's largest producers of cylindrical knitted fabrics. Futian Industrial was cancelled 45 tons of orders a day. Another manufacturer in Wenzhou, which makes American shoes, closed its shop for a month because of its American customers, and all more than a dozen lines of the factory stopped. The factory decided not to open it until at least the end of May.

On March 18th, Dongguan Fanda Toy Factory closed its doors, because of the serious epidemic situation in Europe and America, a large number of orders were forced to be cancelled, and the supplier's dunning caused the capital chain to break.

Fanda Toys is an established Hong Kong-funded enterprise and a large toy processing factory with 1,2 employees. It has cooperated with international famous brands such as Disney and Hasbro, and enjoys a good reputation in the local area. Now that the boss has lost contact, it's embarrassing to escape with unpaid wages.

Fanda Toys is not a unique case. On March 21st, Dongguan Precision Watch Industry said that the company's most important customer, Baoli Fossil, belongs to an American brand, and now all orders have been stopped, and the original production orders have been cancelled or suspended, so the factory can't start normally and faces the risk of shutting down at any time.

the precision watch industry bluntly said that the company had a major crisis, and the whole factory was tentatively scheduled to have a holiday for 3 months. On the same day, Jiahe Electronics, a headset manufacturer in Dongguan, announced that it was going to retire from the factory due to the epidemic. This large factory with 4, employees collapsed.

3

In addition to Dongguan, Guangdong, a similar situation also appeared in Jiangsu and Zhejiang provinces, and spread from manufacturing to clothing, shoes and hats processing plants.

On March 19th, Zhejiang Taiyangshen Footwear issued an urgent notice, saying that due to the outbreak of the American epidemic, customers cancelled all orders, and employees who had not been reworked continued to have a holiday until May 3th, and advised them to leave their jobs and find another way out.

On March 2th, Sanyi Shoes Co., Ltd., located in Zhejiang Province, said that due to the global epidemic, customers' orders were cancelled one after another, and the company decided to stop all recruitment activities, and all the old employees would continue to take leave, and at the same time, the subsidies for husband and wife housing and the rewards for old employees to bring new employees would be cancelled.

The above-mentioned foreign trade enterprises are all large and medium-sized enterprises, and they are also well-known in the industry. If they can't survive, those little-known small and micro enterprises will surely have a more difficult life.

As the epidemic continues to curb consumer demand, and investors are increasingly worried about the global economic recession, European and American fashion retailers have also taken measures to cope with sales shocks and inventory pressures.

Among them, Nike closed its retail stores in many countries and regions around the world, including the United States, Canada, Western Europe, Australia and New Zealand. Adi temporarily closed all direct stores in Europe and North America; Puma has closed more than half of its stores in China.

At present, the closing time of Nike, Adi and Puma will last at least two weeks, especially after the announcement of the extension of the European Cup, the stock prices of the three sports brands have dropped by nearly 5% and their market values have lost half.

In addition, the parent company of Uniqlo announced that all 5 stores in the United States will be closed from March 17th. The week before, Uniqlo closed its only store in Italy, as well as stores in Spain and France.

in addition to closing stores, some brands have also started to offer discounts and promotions, and even chose to cut orders to garment factories. The front-end brand sales are frustrated, and the back-end clothing, shoes and hats processing factory is hard to be immune.

IV

At present, the domestic export industry is still mainly labor-intensive, attracting a large number of blue-collar workers and creating a large number of jobs.

Foreign trade has provided a strong impetus for steady growth. In the first three quarters of 219, the net export of goods and services contributed 19.6% to GDP growth, and foreign trade led to about 18 million jobs.

for foreign trade enterprises, March-April is the peak period for signing export orders every year. However, at present, foreign epidemics have broken out, economic activities have completely stopped, and the peak period no longer exists.

Many foreign trade enterprises may not last for three months. Once the domino of foreign trade enterprises is pushed, nearly one-third of the employees in the industry, that is, more than 54 million people, are likely to lose their jobs.

In order to prevent imported cases, the 127th Spring Canton Fair, which was scheduled to be held on April 5th this year, was postponed for the first time since its establishment. The specific holding time has not been announced yet, which is tantamount to adding insult to injury to the foreign trade industry.

The Canton Fair has always been one of the important platforms for China's foreign trade. According to industry sources, there are as many as 25,-26, exhibitors every year, and the total turnover of the Canton Fair in the spring and autumn of 219 is about 59.18 billion US dollars.

The boss of a foreign trade company in Dongguan said that 8% of the company's orders come from the Canton Fair every year, which is the most important platform for export orders throughout the year. The company began to prepare for the Spring Canton Fair in the third quarter of 219, and the whole person was stunned when it was suddenly postponed.

Conclusion

Under the epidemic situation, China is trying its best to tide over the difficulties from top to bottom.

in addition to the central bank's monetary stimulus measures, senior officials are also actively discussing tax relief and targeted support plans for small and micro enterprises, with a view to helping small and micro enterprises make a smooth transition.

some enterprises began to try to save themselves, and some garment processing enterprises actively transformed to produce medical materials such as masks and protective clothing across borders, so as to seize the market demand and turn crises into opportunities.

However, not all enterprises can produce masks or protective clothing across borders, and the transformation also needs a certain foundation. At this time, the importance of stimulating domestic demand is reflected, and it is a good strategy to increase e-commerce marketing.

for foreign trade enterprises, a thousand words can be condensed into three words: live! Because, only by living can we talk about the future.

At the beginning of the month, I saw a friend who was working in Zhejiang in a circle of friends saying that many factories in Zhejiang were on holiday, and their factory was no exception. They said that the factory posted a notice that it would be on holiday from April 1 to June 1, and it would last for two months, so he had to embark on the journey home.