4 Months, 445.8 Billion Yuan, The Export Market Of Household Products Recovered Stubbornly

- Oct 30, 2020-

O1CN01zTJgnR1kQZPUJ1E6Z_!!2179434678From the total import and export data, according to customs statistics, in the first four months of this year, China's total import and export value of goods trade was 9.07 trillion yuan, 4.9% lower than that of the same period last year, and the decline rate was 1.5% narrower than that of the first quarter. 


Imports were 4.33 trillion yuan, down 3.2%, a decrease of 2.5 percentage points over the first quarter, and a trade surplus of 415.7 billion yuan, a decrease of 30.4%.


Among them, the export volume of furniture and its parts in April was 27.45 billion yuan, an increase of 12.5% over March.

 in the first four months, the cumulative export volume of furniture, lamps, lighting devices and parts, ceramic products and textile products was 445.87 billion yuan, an increase of 53.4% compared with the cumulative data of the first quarter. Among them, textile exports including masks totaled 261.3 billion yuan, an increase of 5.9%; lamps and lanterns 53.78 billion yuan, down 13.4%; and ceramics, 37.56 billion yuan, a decrease of 20.7%.

 in this export market data, there are three things to focus on:



  01


Overseas markets are recovering

 even if the overseas epidemic spread and affected export orders, everyone was very nervous, and some enterprises had a hard time.


However, judging from the situation in April, compared with the first quarter, home furnishing exports are recovering. For enterprises that mainly rely on overseas markets, the performance of the second quarter may be improved more obviously.


If you survive the hard times and take the initiative to look for new opportunities, everything will change. However, the opportunity after the market recovery may be irrelevant to some people because the company has been transferred or closed down.



  02


The source of growth in overseas markets has changed


In the first four months, ASEAN was the largest trading partner, with a total trade value of 1.35 trillion yuan, an increase of 5.7%, accounting for 14.9% of the total foreign trade value. Among them, China's exports to ASEAN reached 740.9 billion yuan, an increase of 3.9%; China's imports from ASEAN reached 608.51 billion yuan, an increase of 8%.


The EU is the second largest, with a total value of 1.23 trillion yuan, down 6.5%, accounting for 13.6% of China's total foreign trade. The United States slipped to the third place, with the total trade value of 958.46 billion yuan, down 12.8%, accounting for 10.6% of China's total foreign trade value.


What is worth noting one is that one belt, one road, and the other countries along the way will import and export 2 trillion and 760 billion yuan, an increase of 0.9%, accounting for 30.4% of our total foreign trade and a 1.7 percentage point increase in proportion.


 previously, some home furnishing enterprises that had done well in export were mainly in the United States and Europe. For example, Ellie home, which makes PVC flooring, has just been listed, with annual revenue of about 1.3 billion, mainly in the United States.


The proportion of export sales of dream Lily reaches 80%, nearly half of its income comes from the United States, and has opened more than 2000 stores. Yongyi furniture, Henglin, etc., regard the American and European markets as the focus.


With the change of one belt, one road and the other countries, we should take the agenda of ASEAN and the whole area as a new focus. At present, some home furnishing enterprises have focused on the layout of these emerging leading areas, which may give birth to a number of new export giants in the future.


  03

We should also spare no effort to grasp domestic trade. We can learn from them

a few years ago, there were very powerful export-oriented home furnishing enterprises. They were returning to China and trying to open up the domestic trade market. From the effect of the later, not many companies have successfully opened up the situation.


According to the observation, among the current export-oriented household brands, seagull residents and dream lilies are relatively effective, which are worthy of key research.


 seagull residents are relatively successful. In recent years, they have been making efforts to develop domestic business, acquiring four-dimensional bathroom, Youchao's, yakebo, etc., focusing on the domestic sales of self owned brands such as integral bathroom, cabinet and smart home. By the end of 2019, the domestic revenue has accounted for 37.5% of the total revenue, and the foreign share has accounted for 62.5%. Previously, the foreign share was nearly 80%.

The revenue of the domestic market has increased from 420 million yuan in 2017 to 704 million yuan in 2019, accounting for 18.58% of the total, with a promising future.


for companies that walk on one leg, we can see more about the practices of seagull residents and dream lilies. Since the products can be sold abroad, there should be opportunities to break the situation in China.