Hi Covid, it is really not nice to meet you! Most of us have the same expression when conversed about the impacts of covid. It has not only affected our personal life and health, but the outbreak has been a source of the shutdown to so many businesses with the shifts in the graph of economic-driven demand. It has led businesses to a position where they are in dire need of structural reforms. With continuous interruptions in the supply chain, the businesses, regardless of which industry they belong to, has faced immense pressure to survive.
In this time frame of two years, we have come across different variants of the coronavirus. We were about to settle in and the economy to finally be able to breathe in the new normal, Omicron, made its way in this era, destroying the beacon of hope that we just had for the economy to be stable again. The recent variant, Omicron, is making sure that our boat does not sail and drown within the waves that it has brought with it. Just like any other industry, the Textile Industry has been under immense pressure and is still in search of the key that could be a driving force in making the industry jump back to where it was before.
Let us have a look at the ways that Omicron has affected one of the most important industries of the world’s economy:
“MSME- Any Chance Of Financial Stability?”
The textile industry relies heavily on the Ministry of Micro, Small, and Medium Enterprises (MSME). They have a crucial part in the production process for both, domestic as well as international. With so many disruptions that the Textile industry is already facing due to the outbreak of Covid, Omicron is no less than a threat to it. It is an additional disruption that has currently blocked all the loopholes that were to be a medium of escape for the industry to strive back with the same position in domestic and international markets.
Due to this variant, many businesses belonging to the respective industry ha to close down and thus has led to a high unemployment rate. With subsidies and other support from the government, the industry finally found its way back, nevertheless, the Omicron just jumped out of nowhere, to make it fall back again. This is now building pressure as financially the industry is getting weak. The loans are not available as easily as were before. The supply chain is highly disturbed and MSME does not hold a strong financial balance to make it smooth again.
“Exporting Countries- The Economy Is Under Immense Pressure”
As the textile industry is thriving, many countries in different regions including, Asia, North America, Australia, and Africa are leading in terms of textile trading. With the textile industry offering a wide range of segments, one of its segments is prospering and flourishing in this trading business, known as Home Textile.
The key players’ China, Bangladesh, India, Pakistan, and Hong-Kong of Home-Textile export products including bed linen, bottom layers, cushion covers, seating, kitchen towels, table textiles, and others, faced many problems due to pandemic. As China claps more than 60% of the market, with products being available at an affordable range and with good quality, it knocks out the competition in a snap. Although China has a strong economy, the way Omicron has blown out, it still possesses a threat to the country. It has faced shutdowns, as the main exports were impacted due to lockdown. With China’s zero- COVID tolerance policy, there is a high chance that the economy might face bulk of losses in the fiscal year.
As they were about to step of depression, omicron just made it worse by stepping in. Economies of countries such as Pakistan, India, and Bangladesh were already disturbed, and exporting Textile is one of their main sources of keeping it somewhat stable. The bubbles of exports of these countries have faced several fluctuations that have been occurring over several years. Nevertheless, the current situation has worsened the state of the economy with unstable financial resources and an increasing unemployment rate.
“Disappointed Customers”
Normally, how does it make us feel when a certain company we preferred when buying things increases the prices and lowers the quality? We will be heartbroken. Covid and this new variant, Omicron, has somehow disrupted the businesses so much that the financial crisis has made them increase the price and compromise highly on the quality being delivered. Not just for domestic but for international end consumers as well.
The bedding accessories, kitchenware, bathroom accessories, and others that we buy for a comfortable home environment are now available at high prices and low quality. Instead of delivering comfort, the aim of businesses nowadays is to cover their financial losses.
The key, international buyers of Home-Textile such as Australia, New Zealand, and the USA shares a high percentage of sales are directed towards these regions. However, with the current state, the sales have been down due to lack of production, choices, and high prices.
Giving customers an experience of a lifetime is what every company used to aim for before Covid, however, since the pandemic and now Omicron, the stance has changed. There is a lot to recover from, thus companies are finding a way to somehow fulfill their financial issues and survive in the market, as the market is dynamic.
