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China economy
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Coronavirus: global textile industry braces for sharp downturn as orders dry up

  • No ‘doomsday scenarios’ yet but there are strong signs the world’s textile industry is set for steep downturn due to the economic impact of Covid-19
  • Restructuring of the industry could see China become global leader in design and offer a chance to develop new brands, industry insiders say

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The global garment industry is preparing for a slowdown as high-end fashion clients cut marketing budgets in response to declining demand for discretionary products. Photo: AFP
Su-Lin Tan

Chinese fashion marketer Kanvid Studio has managed to weather the worst of the coronavirus so far thanks to some quick adjustments from retail clients who replaced lost shopfront sales with new online business.

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But company director Theodore O’Mahony knows his firm’s good fortune is more the exception than the rule.

Clients tell him things will only get worse in the global clothing and textile industry and the crunch will last until the end of next year.

“There was a slight delay in samples reaching us as some suppliers were closed in China. But most are back to work now and we seem to have turned the corner,” he said.

“However, I suspect later in the year the number of styles might be reduced or certainly the volume of [customer] orders … as they look to minimise the risk of overstocking and the associated costs.”

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O’Mahony, like many in the global garment industry, is bracing for an additional slowdown as high-end fashion clients cut marketing budgets in response to declining demand for discretionary products.
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