According to a March 1, 2020 report from the Spanish news site El Pais, the epidemic will hit the world’s textile and clothing industry hard.
This is first due to quarantine rules following the outbreak. Then restrictions on business, leisure, and transportations. And the prospect of a worsening situation has done the most to control the means to buy new clothes.
This fact was proven when half of the world’s population spends most of the year on sportswear.
People do buy many things online, but it is not sufficient to compensate for the economic downfall.
One consultancy firm, McKinsey, projected the crisis has cost companies in the textile and garment industry 30% of sales. Also, 90% of profits worldwide weaken,
The initiation of the vaccine gave business new hope in the last quarter of the year. But the gradual process of vaccination will likely prolong the textile and clothing industry’s problem. And this may last until summer this year.
Uncertain – that is the answer you hear most often when you ask executives and experts about the textile industry’s future.
Industry insiders believe the textile and clothing industry will not recover its loss in 2021 alone.
The production will also undergo big changes. Industry movements will be closer to the market;
More flexible supplies;
Product sets are smaller, cheaper, and more durable;
Expect low relevance this season;
And the focus is mainly on stability.
The report also says the pandemic’s rise a year ago hit the textile and clothing industry hard.
The limited activity has subsided the industry’s revenue stream. It has also forced many well-known brands in Europe and the US to protect their liquidity. They did this by canceling and postponing orders (some already in the works) or delaying payments.
“During the European quarantine, we extended payment for all our suppliers by 30 days.” This according to a Spanish clothing company head who asked not to be named.
He added, “The impact is big on them, but at the same time, it is a matter of our survival.
It wasn’t until last August that we more or less restarted the supply chain.”