(Yicai Global) March 17 -- Many Shanghainese home textiles makers, including LuoLai Lifestyle Technology and Shuixing Home Textile, have resumed production but the Covid-19 epidemic is still lingering on by limiting the demand. 

Luolai Lifestyle's factories had returned to normal by March 10, the Shanghai-based firm told Yicai Global. In a major online marketing push, the owner of 3,000 brick-and-mortar stores expects to turn some 2,000 more franchisees into vloggers to reach a total of 10,000.

"Sales in March have been much better," Zha Zhuohong, director of Shuixing's research and development center, told Yicai Global. In February, sales had reached a point between 70 percent and 80 percent of that of a year ago, Zha added. Those figures also applied to the recovered production capacity.

The whole supply chain is affected by the Covid-19 epidemic, said Zha. Demand is lower than expected, new product releases are delayed, and raw material prices are hiked, he added. One clear setback is related to sales channels. Shuixing's trade event, that was originally scheduled for mid-February, has now been postponed till April and changed into an online seminar. 

The most affected suppliers, including those in eastern Wenzhou and Nantong, have reacted to production halts as businesses with a demand spike do. "Cotton fabrics are the most popular but their prices have risen by three percent from a year ago," said Zha. Still, the retailer has not hiked its product prices. 

But no epidemic lasts forever. Recovery is accelerating among China's downstream and upstream textile industry players, a survey that was done by the China National Textile and Apparel Council between Feb. 13 and March 4 suggested.

Editor: Emmi Laine