The international air freight and logistics companies in Asia are seeing a boom in business due bongdaso dữ liệu a surge in demand from American and European consumers for fast-fashion products from Chinese e-commerce platforms like Shein and Temu, as China reshapes the global online retail market.
In the first half of 2023, the most popular Chinese fast-fashion brands exported around 5 billion worth of e-commerce goods, according bongdaso dữ liệu the Financial Times. Industry reports suggest that on certain days, at least 80 percent of air freight cargo originates from China’s fast-fashion companies.
Analysts attribute the success of Chinese fast-fashion brands in the US market bongdaso dữ liệu three key factors. Firstly, their competitive pricing, aided by the absence of significant tariffs on small parcels valued at less than 0. Secondly, aggressive and widespread price promotions that are unparalleled in the US market. Lastly, the reliance on low-cost suppliers and designers in China contributes bongdaso dữ liệu their cost-effectiveness.
Moreover, bongdaso dữ liệu beat the competition, these online retail brands are willing bongdaso dữ liệu pay elevated prices bongdaso dữ liệu air freight carriers bongdaso dữ liệu ensure that customers in the US, UK, and elsewhere get the goods they have ordered in the fastest and most efficient manner.
In November 2023, a surge in e-commerce cargo from China bongdaso dữ liệu the US and Europe led bongdaso dữ liệu a 5 percent increase in worldwide demand compared bongdaso dữ liệu November 2022. This surge in demand was reflected in elevated air cargo rates.
Furthermore, International shoppers are more at ease than ever buying an expensive designer handbag from an online seller on eBay or purchasing a top from Shein. But all will have the expectation that their goods will be delivered bongdaso dữ liệu their doorstep in a couple of weeks or less.
These online retail brands have rapidly outpaced established European brands like H&M, Primark, and Zara by targeting the younger demographic through direct marketing and social media campaigns.
The essence of these businesses lies in offering runway-inspired looks at more affordable prices bongdaso dữ liệu fashion-conscious consumers, particularly the younger, social media-savvy demographic.
Chinese companies’ ability bongdaso dữ liệu quickly adapt bongdaso dữ liệu trends and make prompt decisions, along with their efficient manufacturing capabilities, is identified as a key factor in their dominance. The speed and efficiency of Chinese e-commerce giants are facilitated by building a connected supply chain with the shortest distance between manufacturers and customers.
For instance, Shein strategically changed its headquarters from Nanjing bongdaso dữ liệu Shanghai and relies on Guangdong province in South China, a garment manufacturing district in the Pearl River Delta with 25,000 apparel shops.
The Pearl River Delta is famous for generating 40 percent of all Chinese exports. It is near the shipping ports of Yantian and Hong Kong and the airports of Hong Kong and Guangzhou. That helps Shein take just days bongdaso dữ liệu transport goods bongdaso dữ liệu a distribution facility bongdaso dữ liệu ship them bongdaso dữ liệu customers worldwide.
Shein’s sales are almost entirely online, which enabled the retailer bongdaso dữ liệu generate billion in global revenue in 2022, according bongdaso dữ liệu research firm Coresight. The company’s overhead is also low, as it doesn’t operate any stores full-time. Ruthless efficiency is also a key factor that contributes bongdaso dữ liệu their success.
In the run-up bongdaso dữ liệu the Christmas season, data from air freight provider TAC Index showed that rates continued bongdaso dữ liệu rise on goods flown transpacific from Hong Kong and Shanghai.
Willie Walsh, director general of the International Air Transport Association (IATA) said: “November air cargo demand was up 8.3 percent on 2022 — the strongest year-on-year growth in almost two years. That is a doubling of October’s 3.8 percent increase and a fourth month of positive market development.”
In conclusion, the winning formula for Chinese fast-fashion brands over their Western counterparts lies in their ability bongdaso dữ liệu offer rock-bottom prices for trendy fashion in small quantities, emphasizing a focus on affordability and rapid adaptation bongdaso dữ liệu consumer trends.
Source: https://www.logisticsinsider.in/chinas-strategic-shift-in-fast-fashion-supply-chain-leads-bongdaso dữ liệu-boom-in-international-air-freight/
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