As America’s economy begins to wake up from the Coronavirus, China is ramping up its efforts to be able to meet the increased demand to the supply chain. Specifically, OEC is seeing an increase in demand for household good items such as kitchenware, entertainment systems and gardening products.
Driving America’s demand for these products is the change in lifestyle caused by the pandemic, as consumers have realized that certain items are essential to cope with government stay-at-home orders. As a result, China is helping to increase its output on these goods because consumers have made it clear that they are prioritizing and ready to purchase household items that will make their lives at home more comfortable, livable and enjoyable.
“A new importance has been placed upon the products that Americans use at home and this can lead to a potential boom in a variety of household products being shipped,” said Anthony Fullbrook, U.S. East Region President here at OEC Group. “We anticipate China to help meet this demand and predict shipping increase in these sectors to be significant because people will likely still be spending more time at home for the foreseeable future as events that draw crowds will remain totally or partially closed.”
OEC is expecting demand for shipments of household goods from China to intensify over the summer. The demand will be compounded by myriad businesses’ need to replace recently sold goods, given how emergency COVID-19 restrictions have prevented many of them from replenishing depleted inventories. Additionally, OEC expects retailers from other industries that cancelled orders during the lockdown to reanalyze the market and order products based on the current demands of the consumer.
“While the first half of the year has been a significant challenge, I think there is ample reason for optimism,” Fullbrook added. “The demand for goods and China’s increased output has put the economy back on the path toward its zenith.”