Rising export prices of Chinese products have shifted towards international buyers

According to a survey of 385 international buyers conducted by Global Sources, most of the interviewed buyers stated that they need to pay higher prices to purchase Chinese products. As the export prices of Chinese products continue to rise, the impact on China's low-end products is most significant compared to other, cheaper supply markets.

68% of the buyers surveyed pointed out that the appreciation of the *** impact on its procurement strategy from China, of which 54% of respondents pointed out that the appreciation of *** caused the export prices of Chinese products to rise.

One-third of the buyers surveyed expect that in the next six months, the *** will rise to one US dollar against 6.5***, and 29% of those surveyed even expect the exchange rate to rise to US$6.43. **.

In response to the strong appreciation of the ***, 54% of the buyers surveyed plan to increase procurement from other countries, of which 57% indicate that India will be a major choice for them. However, for specific specifications and procurement needs that require rapid delivery, buyers still have a certain dependence on Chinese exporters.

Mr. Craig Pepples, President of Global Sources Corporate Affairs, said: "Since the prices of Chinese products have risen, Chinese exporters must work harder to enhance and promote their competitiveness and provide better services and better quality. Production to offset the impact of rising product prices."

The measures planned by the interviewed buyers to cope with the appreciation of the renminbi and the increase in the prices of Chinese products include: 24% of the buyers surveyed will increase the retail price; 22% of the buyers surveyed plan to reduce the number of products purchased each time Quantity and postponement of order placement time; 20% of the surveyed buyers stated that they would only purchase low-end products from China; 17% of the surveyed buyers stated that they would only purchase medium-end and high-end products from China; 14% received The interviewed buyers stated that they would fix the exchange rate of the export quotation; 9% of buyers planned to use *** as the base currency for trade settlement.

Thirty-one percent of the buyers surveyed said they would increase their purchases from Vietnam, of which more than half were European and American buyers and 19% came from the Middle East. Most of them mainly purchase consumer goods such as hardware, fashion accessories and accessories, and some US and Canadian buyers purchase personal electronic consumer goods.

In addition, as Vietnam's ready-to-wear garments are generally 30% cheaper than China, Chinese garment exporters have already felt the transfer of purchases from overseas buyers, of which the casual wear industry has suffered the most.

The survey also found that 30% of the buyers surveyed plan to increase procurement from Thailand, of which 24% are from Europe and the United States, followed by Middle Eastern buyers, reaching 22%.

*** The continuous fluctuations in the exchange rate against the U.S. dollar made it difficult for most Chinese suppliers to fix export quotation. At present, one of the ways to solve the exchange rate problem is to abandon the use of the US dollar instead of the US dollar to settle the bill, but this method is currently progressing slowly. Although currently only 17% of the buyers surveyed stated that they are using *** to deal with Chinese suppliers, nearly 39% of the respondents said they would be willing to settle by *** in the future.

The main reason for the slow progress in using *** settlement is that *** has not yet fully circulated in the international market, and 48% of the buyers surveyed stated that *** is not circulated or used extensively in other countries.

The survey was conducted in December 2010. Global Sources market analysts visited 385 buyers to purchase Chinese-made electronic products, household products, gifts, clothing, textiles and hardware products. Most of the buyers surveyed came from China. Major export markets, including Europe and the United States, and the rest come from the Middle East, Central and South America, and Asia.