Chinese Cross-Border Sellers Are Swamped as World Cup Orders Flood In
Lu Hanzhi
DATE:  4 hours ago
/ SOURCE:  Yicai
Chinese Cross-Border Sellers Are Swamped as World Cup Orders Flood In Chinese Cross-Border Sellers Are Swamped as World Cup Orders Flood In

(Yicai) Feb. 2 -- With just five months to go before the World Cup kicks off in the United States, Canada and Mexico, Chinese merchants who target overseas markets are overwhelmed with orders. Demand from these three nations has been climbing steadily in recent months, and many buyers are topping up their orders.

Merchants in Yiwu, known as the World’s Small Commodity Capital, said the World Cup supply cycle has entered its busiest phase. Chen Xianchun, head of Yiwu Jinzun Trophies and Medals, told Yicai that the firm’s factory is working against the clock in order to ship all orders before the Spring Festival which falls on Feb. 17 this year.

Many customers have recently placed additional orders, Chen Xianchun said. To save time, some have opted for air freight, even though this pushes the shipping cost up higher than the cost of the goods themselves. Factories are running flat out. His plant has extended the working day by two hours and has hired more than 20 temporary workers to keep up, he added.

Orders linked to the US-Canada-Mexico World Cup have jumped significantly with offline orders up 30 percent from the previous tournament and online orders have surged about 60 percent, Chen Xianchun said. Items such as keychains and hair bands are particularly in demand.

“When placing orders, customers don’t only look at the price,” Chen Xianchun said. “Ocean freight costs and delivery times are also major considerations. Once the goods arrive, issues such as quality, consistency and delivery schedules are all taken into account. In these areas, Chinese sellers already have well-established operating systems. Many customers also rely on Chinese suppliers for product development advice, and these sellers will make recommendations based on their industry experience.”

Export Boom

Exports of sports goods and equipment from Yiwu jumped 16.8 percent in the first seven months of last year from a year ago to CNY6.7 billion (USD975.3 million), and exports to the three World Cup host countries surged 10 percent to CNY1.8 billion (USD25.8 million), according to statistics from Yiwu Customs.

As the group stage and knockout rounds unfold, additional orders targeting underdog teams and qualifiers are likely to surge, and in the week leading up to the finals, orders may peak, Zhang Zhouping, executive director of Bense Think Tank, told Yicai.

Chen Ning, a jersey manufacturer with a decade of experience in the industry, said that he has recently landed several large orders. One US client placed two orders totaling more than 60,000 sweaters. Last year, the customer mainly ordered US-themed designs, but this year about 70 percent of the orders feature Mexican-style designs.

One reason for the shift is that the Mexican market is growing rapidly and another reason is that Mexican cultural elements are very popular in many US cities. Chen Ning’s factory will tweak designs based on current sales trends, he added. For instance, it is incorporating elements such as the Mexican flag and mascot as demand for Mexico-related orders continue to climb.

Editor: Kim Taylor

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Keywords:   World Cup