Hot News

Crisis and Opportunity Under COVID-19

2020-04-04

Since the beginning of the year in 2020, covid-19 has first occurred in China and then spread around the world, severely impacting the growth of world trade. As "buy the whole world" "sell the whole world" China pile stone bridge international home textile city, but also feel the "spring cold" cool meaning.

In the first two months of this year, China's total import and export value fell by 9.6% year on year, with exports falling by 15.9%. However, the resilience of China's foreign trade has given all sides reason to believe that with the domestic outbreak effectively under control, the recovery growth of the foreign trade industry will be a high probability event.

7e0df4f2e64d1c6fae730ea2e41e04c2.jpg

However, the outbreak outside the country is like a "black swan", so that the foreign trade market has undergone a dramatic reversal, from the previous rush order, deadline, to now no orders or even return orders, many small and medium-sized foreign trade enterprises seem to fall into the ice valley overnight. From the perspective of external demand, consumption expectations in major trade markets such as Europe and the United States are continuing to shrink, shrinking the size of foreign trade orders or canceling orders gradually increased, some foreign trade enterprises just to resume production have to face the problem of sales.

China is the world's largest trading country in goods, with 180 million people employed by the foreign trade industry chain. Stabilizing foreign trade is crucial to keeping employment stable, improving people's livelihood and ensuring steady economic growth. It is crucial to preventing and controlling the epidemic and ensuring high-quality economic and social development. Combing the recent series of policy measures, stable foreign trade package "package" is not only covers the smooth supply chain, reduce logistics cost, such as the key link, and how to effectively solve financing difficulties, financing, such as the expensive plugging point put forward clear requirements, these measures to stabilize foreign trade base, support the foreign trade enterprises to survive, is undoubtedly a "timely rain".

758696a5946cfd3c7e8eaa6634bca924.png

With strong support from government policies to maintain stability, our enterprises should not just sit idly by and wait for their demise. Instead, we should face up to difficulties and pursue innovative development. Under the traditional trade mode, most enterprises connect with overseas buyers through domestic and overseas exhibitions to obtain orders. Affected by the epidemic this year,all the exhibitions will be affected. Even if the epidemic situation stabilizes in the second half of the year, foreign buyers will not rush to the exhibition and place order. Historical experience shows that crises often breed new opportunities, as evidenced by the emergence of numerous Internet companies such as Taobao and Jingdong after SARS in 2003. Since the beginning of this year, new consumption forms and patterns have been rapidly promoted and applied in the epidemic, which may also be a new opportunity for foreign trade enterprises.

With the rapid development of the Internet and raising percentage of the younger buyers, this subtle change is taking place in the way and preference of products purchasing. Enterprises can take advantage of the epidemic situation to expand online trade, through the integration of online trade resources, digging in-depth of online trade characteristics, product selling points display. In recent years, the domestic increasingly popular "live streaming goods", "douyin short video" can also provide us with some reference and inspiration.

At the same time, due to the serious impact of the epidemic, this year's medical protective equipment and protective props enterprises will get rapid development this year, in the seller's market. As traditional household products, our home textile products are often designed and developed with emphasis on materials, crafts, and patterns, etc. However, affected by the epidemic, ordinary people will pursue more antibacterial health home bedding, which is a great opportunity for our enterprises.