View: | China's declining purchasing power, or the biggest hurdle for seafood imports in 2019
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Core tips: Data from the National Bureau of Statistic shows that luxury products consumption has decreased, but overseas exporters are keen on the Chinese market……
Data from the National Bureau of Statistic shows that luxury products consumption has decreased, but overseas exporters are keen on the Chinese market……
Original Text: John Sackton
Translation: WU Luyi
Many people blame outside factors such as the U.S.-China trade war for the biggest dilemma of the marine product business. They seldom spend time reflecting on the problem of the market itself. Data from the National Bureau of Statistic of the end of last year showed that the buying power of Chinese consumer, especially for high-end luxury products, is rapidly decreasing!
Bloomberg drew the following chart according to data from the National Bureau of Statistic. Last October and November,
In fact, China's GST is not collected from the accounts of ordinary households' daily expenses. Instead, the main source of GST is taxes on transactions of luxury goods, jewelry, imported cars, designer clothes and other similar goods.
Although imported seafood is not included in the list of luxury tax collection, the group driving the consumption of imported seafood is composed of upper-middle class consumers who are able to buy luxury goods and pay the luxury tax.
So the sharp fall in GST revenue is not a positive sign for the seafood import industry.
We know that the last few years the global seafood industry dynamic increment, the most prominent is the rise of China's consumer market to promote the demand for imported seafood lobster exporters from Canada to the Norwegian salmon manufacturers, suppliers from Scotland to Ecuador shrimp, is not the "shocked" about the emerging markets exporters don't like China, because China can absorb all of their goods, and pay the ideal price to take the Boston lobster market, for instance, when the Chinese government decided to a 25% tariff on the lobster, Canadian exporters think their chanceIndeed, tariff in the first two months of live lobster order demand from the United States Maine to nova scotia, however, Canadian lobster prices rose to a dock last December CAD 9 / lb, even 10 CAD/lb, if China can continue without the bottom line to digest all the products, industry, of course, still can continue to develop, but one thousand can't?So what's going to happen?After Christmas, Canadian lobster exporters already feel the pressure of the inventory is not only the lobster, the wild turbot dungeness crab, and other varieties of supply chain is a subtle shift in the sino-us trade dispute is not actually at the root of the problem, it's just play a role of trigger and enlarge the market and should really be watchful, China is gradually weakening economy!With an extreme metaphor, it would be like to avalanche region opened fire, and the avalanche is moving toward our way (the metaphor and all the goods into the single market, but it does not take into account the market will reverse their damage) as the cradle of imported goods, alibaba and jingdong, two of China's largest electric business platform was created for seafood import industry and its distribution of explosive growth, however, in the third quarter, jingdong claims that the decrease in the number of consumers for the first time by 2.7%;Alibaba lowered its revenue forecast for the full year on weak sales in consumer electronics and big-ticket electronics
In China, many companies set a growth expectations, often are based on the total have new customers and is willing to spend more money to buy things so the paradox of the Wall Street journal, a senior analyst at China market research group said Ben Cavender, and investors always according to the reality question: now that signs the market is not good, when can our investment returns?Mr. Tsai, a spokesman for alibaba, said the lower revenue would not affect the takeout food delivery business.Property sales are stagnant;Car sales fell 13% in November;Industrial margins fell by 1.8%, the first decline in three years.Domestic business and export orders procurement research obtained the negative conclusion these signs are classic signs of recession, of course, the purchasing power of the Chinese will not disappear overnight, seafood demand during this Spring Festival is always higher than last year if you have stock and ready to supply the Spring Festival, your pricing will determine your profitability weakened China consumer purchasing power, will force the buyer to cut orders for more discounts and even change the way the procurement and paymentA change in the buying strategies of Chinese buyers would directly affect the most sensitive nerves of overseas suppliers with long-term operations in China, and the consequences of a Chinese profit squeeze in 2019 could be far worse than a trade war