The crisis has already caused serious difficulties in various sectors.
Multiple sectors are subjected to problems in the textile value chain showing the dependence on chinese intermediary products. Particularly in the textile industry there are 12 segments showing losses or other effects by the coronavirus.
Actually, China is the major trade partner of Brazil. In 2019 – according to the Ministery of Economy, Brazil had exported to China products in the value of USD 62.9 billion or 28 % of total exports. The imports from China amount to USD 35.2 billion or 19 % of all Brazilian imports.
Manufacturers depend on imports and are in need of continued deliveries.
In turn, in the clothing sector, there are serious discussions that this sector will be suffering by the effects of Coronavirus. Experts predict, that if the situation is not granting a relief in the next few days this will lead price increases at the level of the final consumer sector.
Therefore the overcome of Coronavirus is of absolute importance also to the textile retail business.