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Chinese Christmas items and Christmas gifts were sold out, and the Yiwu market was cold. What signal was released?

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Author : Seventh Horizons
Update time : 2021-08-24 11:31:12

    Chinese Christmas items and Christmas gifts were sold out, and the Yiwu market was cold. What signal was released?
Source: Seventh Horizons
Yiwu, China in August this year was very different from the past. It used to be the peak season for Christmas items at this time, but now there is no one to buy. As the world's largest distribution center for Christmas-related goods, it is a strange phenomenon that there are few foreign buyers in the Yiwu market in August.

Christmas items and Christmas gifts
A salesperson said that the stock of Christmas items is now running low. Starting from the beginning of this year and continuing until May, many foreign buyers have come to purchase Christmas items. This year’s Christmas season has moved forward for two or three months. Many Christmas items sold to India and Russia were bought in February and March, and now there are very few left.
A seller in Yiwu, China said that this year’s peak sales season was two or three months earlier than last year. Last year, customers came to China for purchases in May and June, but they came just after the Chinese New Year this year. In May and June, the company's monthly order volume can reach USD 1,200,000 to USD 1,500,000.
Two-thirds of the world’s Christmas products come from Yiwu, the largest distribution center for Christmas products in China. The difference is that the sales volume was the best in August each year, but now there is almost no one to purchase, and many popular products are sold out. The purchase of Christmas supplies came to an end ahead of schedule.
Not only in Yiwu, Ningbo's Christmas products also ushered in a peak in the second quarter of this year, and the export of Christmas products at Ningbo Port is also overwhelmed. The staff of Ningbo Customs said that the export volume of Christmas products has gradually increased since May, and the export volume of the entire second quarter has increased by 5% compared with the same period last year.
So why does this happen?
We all know that the traditional Christmas holiday in the West will have a long time to come, but now the purchase of Christmas supplies has come to an end. There are many reasons for this. Due to the arrival of the epidemic, the port staff is in short supply, the transportation capacity is very tight, and the terminal is very congested, and the suspension of navigation often occurs.

Christmas items and Christmas gifts-SZWM
 As the turnover efficiency of ships is very low, supply and demand are seriously out of balance, and there is too much demand for supply to meet. Since the third quarter of last year, the space of ships has been very tight, and it is difficult to get a container. Now, not only has it not improved, but it is even more in short supply.
Under such circumstances, it is understandable to buy Christmas products in advance. After all, Christmas products are seasonal products. They can only be sold before Christmas. Once the season is over, they cannot be sold. In order to ensure sufficient supply and not miss the time point, It is reasonable to buy in advance.
Only by buying in advance can the goods be delivered in time.
In addition, the price of ocean freight has been rising very rapidly. This year even set a record of rising to 500%. A standard container will cost USD20,000 in freight. Even if China is already actively regulating it, it will still take some time to adjust.
In other words, there is still a possibility that shipping costs will rise. The sooner you buy Christmas products, you can not only seize the advantage of transportation, but also avoid price increases to a certain extent.
Coupled with the current resurgence of the epidemic, the sooner you plan, the better, and the epidemic has also become one of the factors contributing to the increase in freight rates. At the current spot price, Shanghai's export container freight index has hit a record high.
It can be said that the emergence of this situation is predictable, but it also shows from the side that China’s economic market is stable and plays a vital role in the recovery of the global economy.