(NCP) Analysis of the impact of this epidemic on the leather industry

How will the epidemic of the new coronavirus (NCP) in 2020 affect the leather industry?
The catering, hotel, tourism, entertainment, retail and other industries bear the brunt. One concern is spreading: SMEs that have been hit hard by this epidemic may fall into the future? How to survive this epidemic has become the biggest challenge facing enterprises.

Looking at the impact from a macro perspective: demand and production have plummeted, investment, consumption, and exports have all been significantly affected, short-term unemployment has risen, and prices have risen. Micro-level impact: Private enterprises, small and micro enterprises, employees with flexible pay systems, and migrant workers are more damaged.

As far as the leather industry is concerned, we are in the upstream raw material supply chain of footwear, leather goods, and sofa retail. The domestic market Guangdong, Fujian, and Zhejiang have delayed construction until the end of February. Wenzhou is the main domestic shoe and clothing market. This time the epidemic has been much more serious. It was postponed until March. If the epidemic is not effectively controlled in the short term The downturn in the domestic market may continue to affect the first two quarters of this year. Domestic retail sales of shoes, clothing, bags and bags are weak, followed by a plummeting demand for raw materials.

Faced with the immediate difficulties, there are still many obvious problems. For example, stalls in Guangzhou and Wenzhou have high rental costs, and manufacturers in the country will face the problem of starting construction. These days, several regions of the country Friends of the industry, everyone is pessimistic about the operation of the first half of the year, yes, everyone is home, who still buys shoes and clothing? These days are still at the peak of the epidemic. Officials are temporarily unable to determine the time for full resumption of work. Various measures have been introduced continuously, and no one wants to hit the muzzle. It is more waiting for the next situation to develop.

In addition, the demand for leather has shown signs of fatigue in recent years. Looking at foreign trade, the World Health Organization has just upgraded China to a “PHEIC” and is familiar with international trade rules. Everyone knows that this is equivalent to declaring China an “infected area” for a major epidemic! And this will become the sword of Damocles in the foreign trade export industry! Because once China is identified as an “epidemic area”, it will have a huge impact on China’s foreign trade cargo exports, shipping logistics and foreign exchanges. Then many export products from China will be restricted or even banned when exporting. This is a severe blow to China’s export economy as it is being tested.