China Garment Association (CGA) recently conducted a survey to know if clothing enterprises (brands and manufacturers) have resumed their operations in China amidst massive spread of Coronavirus – COVID-19.
325 companies in 14 industrial clusters in China were asked questions during this survey on 27-29 February and 77.1 per cent of the companies responded to the questionnaire sent by CGA.
69.7 per cent of 325 enterprises were manufacturing firms, while 30.3 per cent were brands.
The response that CGA received shows positive trend as 80.8 per cent of the enterprises have resumed work. 19.2 per cent of enterprises have not resumed work in order to avoid the risk of the epidemic.
Some of them stated the government restrictions are still there, while some are waiting for resumption approval. It is believed that most of these companies will resume work till mid-March.
Hubei Province is a huge hub for apparel manufacturing; however, it has no clear plans to resume manufacturing in coming days due to massive spread of virus within Province.
The resumption of operation is still facing challenges due to difficulties such as shortage of workers; asynchronous resumption of work between procurement process, production process and post production process within enterprises in the industrial supply chain; poor transportation and logistics; reduced orders in the market downturn; and lack of protective material as well as resources.
Survey further found that resumption operation of large-scale enterprises is way better than that of small and mid-sized enterprises. CGA conducted the same survey in the 3rd week of February and the gap of resumption of large enterprises and SMEs has narrowed significantly in the recent survey.
It is found that around 94 per cent of large-scale enterprises have resumed work out of 77.1 per cent of those who responded to the questionnaire. This is an increase of 6.8 percentage points from the previous survey and higher than that of SMEs by 16.1 per cent and 25.1 percentage points.
The clothing enterprises in the South-East coastal provinces have seen a great turnaround due to faster and effective control over the epidemic. The workers, with the support and supervision of the Chinese Government, are returning to work from other provinces through chartered flights and chartered cars.
These workers are also being provided with bonus and subsidies to actively resume production. 58 per cent of large enterprises saw return of more than 70 per cent of their workers, while the same number was 41.5 per cent when it comes to SMEs.
If the survey conducted by CGA is anything to go by, the situation seems to be improving in Chinese apparel factories and apparel brands’ stores/offices.
We, at Apparel Resources, wish a speedy recovery of the country amidst this COVID-19 spread.