European Market Slowdown &Nbsp; China Supplier Rio Tinto Emerging Market

About 581 China Exit According to a business survey, Chinese suppliers are actively strengthening new businesses. market Export to deal with European market export triggered by debt crisis Order Slowing down.

42% of the surveyed suppliers are expected to further consolidate their market position in South America and Latin America, the Middle East, Africa, Eastern Europe and the Asia Pacific region in the coming months. In addition, because China has implemented free trade agreements with many Asian countries, Chinese suppliers are particularly optimistic about the development prospects of the Asian market.

Thanks to the favorable policies implemented by the Chinese government, the domestic consumer market is developing constantly. As a result, nearly 20% of the companies surveyed said they plan to strengthen their penetration in the domestic market.

Mr. Craig Pepples, President of global resources and enterprise affairs, said: "in the face of Europe Economics The slowdown has led to the reduction of orders, and Chinese suppliers have taken proactive measures to maintain their export business to the region. Although most of the respondents said that the export business has been implicated in the European debt crisis, they remain cautiously optimistic about the 2012 sales outlook. Over 60% of the companies surveyed expect that their business in the European market will remain stable or even increase in 2012.

The survey shows that Chinese suppliers are taking a series of measures to deal with the impact of the decline in European orders, including:

15% of the respondents said they would speed up the launch of new products.

11% of exporters plan to cut production costs to increase profits.

10% of suppliers will increase investment in R & D to further improve product quality.

3% of the companies surveyed said they would consider moving their factories to areas with lower production costs.

1% of the manufacturers pointed out that if the situation did not improve in the short term, they would have to close the factory.

Almost all of the companies surveyed felt the impact of the European debt crisis. 35% of the respondents said their impact was quite obvious, while nearly 60% of the respondents said they were affected to a certain extent.

66% of the surveyed suppliers indicated that exports to the European market had declined in the past few months, while the other 22% could maintain stable exports, while the remaining 12% indicated an increase in exports.

　 Responding to changing demands from European buyers

According to the survey, European buyers tend to place small orders in order to avoid overstock. This is especially evident in computers, consumer electronics and communication products, with nearly 60% suppliers indicating less orders for export orders.

In addition, as more and more customers demand lower quotations, suppliers are still facing the pressure of rising costs of raw materials, parts and labor, so their marginal profits are constantly eroded, and this phenomenon is more obvious in some low value industries such as clothing and fashion accessories.

Some suppliers said that the market demand tended to be entry-level products, but the demand for high-end products was falling.

The supplier said that it had begun to deal with the changing demand of buyers. More than 45% of the respondents said they would provide more flexible product quotes, and 31% of the exporters expressed willingness to reduce the minimum order to match buyers' purchasing behavior.

To satisfy buyers' demand for value for money products, many exporters plan to strengthen the added value of existing products. Nearly 20% of suppliers plan to introduce more basic styles or lower end products.

　 2012 export Outlook: cautiously optimistic

Although Europe is likely to be caught in an economic contraction, Chinese suppliers remain cautiously optimistic about the forecast for exports in 2012. About 29% of the companies surveyed expect to increase their exports to Europe next year, while 34% of them believe that sales will remain stable.

However, nearly 40% of the surveyed suppliers are expected to further decline in exports to Europe, with a drop of 10% to 20%. Nevertheless, Europe is still one of the main export markets for Chinese exporters.

The survey was conducted by e-mail in from November 4 to 11, 2011, attracting a total of 581 Chinese exporters from different industries, including household appliances, electronic products, hardware and DIY appliances, gifts and gifts, clothing and fabrics, solar energy and energy saving products and electronic parts products. More than half of the respondents were from Guangdong, while others came from Zhejiang, Jiangsu and Shanghai.