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    Chinese Factories Face "Uncertain And Unstable" Future.

    2016/5/9 11:45:00 41

    Canton FairButtonsClothing

    In Guangzhou, there are two sessions a year.

    Canton Fair

    (CAnton Fair), more than a dozen executives interviewed were warning of tough trade conditions, especially in Europe.

    Some of them said they had seen a slight increase in demand in the US this year, but that was not enough to offset the weakness in other regions.

    It brings together buyers from all over the world and tens of thousands from all over the world.

    Button

    Zippers to manufacturers of food and electronic products, the Canton Fair can be seen as a barometer of global demand and important manufacturing conditions in China.

    The 3 week Canton Fair closed on Thursday, with more than 185 thousand overseas purchasers, representing less than 1% of last year's Spring Fair.

    Turnover also rose slightly to $28 billion.

    Xu Bing, deputy director of the China Foreign Trade Center, said that although maintaining stability, the global demand outlook is still "weak", and Chinese factories are facing "uncertain and unstable" future.

    Chinese exporters say they still face pressure to get contracts by cutting prices and lowering the size of the smallest orders.

    Last year, Cheung Hing Fujian luggage group (Xiangxing) reduced the wholesale price of business backpacks from $10 to $7, but still found it difficult to obtain large orders.

    "Our minimum order size is 500, but for fear of the current situation, potential customers only want to buy 100 or 200," said Lin Dan, a salesperson of Xiang Xing bag and suitcase. "It makes it difficult for us to take orders, because we are doing the scale business."

    Orient International et al.

    clothing

    Manufacturers are also in a difficult position.

    Orient International supplies Zara, H&, M (Hennes & Mauritz) and other international brands.

    Leila Ma, the sales director of the Shanghai company, said H& and M's profit decline were a bad sign for the industry as a whole.

    "Everyone will be affected even when a big ship begins to sink slowly," she said.

    Some very cheap brands, such as Primark, are still in good condition, but their prices are so low that it is difficult for us to make money for them. "

    However, there are still some bright spots in the gloom.

    Executives say sportswear and sports equipment are still relatively good because many countries are paying more and more attention to health and fitness.

    Leila Ma said: "people have cut down the cost of pullovers, but are still willing to spend a lot of money on Nike shoes (Nike)."

    Lin Hongbing, a boss of a backpacker factory in Fujian, uses this trend to introduce a series of waterproof packages for jogging, hiking and camping.

    Lin Hongbing said that in Europe, especially the United States, driven by demand, the sales of her Osah knapsack are increasing year by year with an increase of more than 35% (although the base is small).

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