2023 is the Best Time to Import Floorings from China
Chinese Yuan CNY Continues to Weaken in Favor for Flooring Importers
Over the past three weeks, the Chinese Yuan CNY has continued to weaken againest United States Dollar USD. As of today, the USD/CNY has already peaked 7.22, the highest in past 6 months period. Financial experts from various medias has expected the CNY currency to remain weak at least for the next 3 to 6 months. However, as the fair value of USD/CNY is predicted at 6.0, it is likely that CNY will start to appreciate from 2024 on forward.
Could the Chinese Yuan CNY depreciate above 7.30 rate?
According to Reuters article “China’s Yuan Drops Through 7 Again, the Dollar is in the Driver’s Seat” has express that CNY/USD currency are likely to continue to depreciate and could reach to 7.3, though it is not clear whether this depreciation could go further as US Federal Reserve remains hawkish potential leading to US inflations.
Expert Opinion views in AsianInvestor.net has indicate that the CNY is expected to fluctuate around 7.20 for the next 3-6 months
What does this mean for Flooring Importers?
As the Chinese Yuan CNY is expected to remain relatively weak over the next 3-6 months, importers buying products from China can expected to receive lower quotations and prices in products. As the summer rush season coming up in a few months, brands, distributors and importers can really leverage the price premium from undervalued CNY currency. However, as it is predicted that USD/CNY rate will eventually move into a fairer value towards 6.0 rate, making bulk purchase in advance might be a strategy major distributors would implement in order to maintain lower costs in products during the beginning of 2024.
Considerations in Import Floorings From China
For the flooring industry, especially in the retailing markets, flooring brands and distributors should consider about the lead time and new product launch timings. There are signals which global brands are about to launch their new color collections in July / August and with market campaign to promote their new collections in laminates and resilient floorings throughout the second half of year 2023.
For market followers, its worthwhile to observe the latest color trends in major brands before launching your own products. However, the general lead time is about 35-40 days and could take longer if there are further needs in new product developments. Therefore Ready2Launch or Made to Order Color patterns might be more preferred with much shorter lead time.
Overall, some of the main considerations in importing flooring products from China are:
- Quotation and Pricing of Floorings (Based on product spec)
- Availability in Flooring Accessories including Marketing Purpose Materials
- Color Pattern Designs & Trend in Resilient Vinyl Floorings / Laminate Floorings / Carpet Tiles
- Production Lead Time (35-40 Days)
- Freight Shipping Time (average 15-25 days)
- Product Launching Preparation and Timing
- Inventory Turnover
Why Finding a Sourcing Partner in China?
Due to the fact that the Chinese manufacturing sectors are having a significant surplus in production capabilities, global buyers and importers can really leverage and enjoy the products at very competitive prices. Though, as the market continues to compete in furious conditions, even the biggest of suppliers in China has the incentive to make cost down in materials to offer a more competitive priced products. This process is often carried out without notifying the clients or buyers and has potential risks in diminished quality of products, let along 3rd tier manufactures that goes into using unqualified materials to offers unfairly low prices. Therefore it is important to have a professional specialist whom has a depth knowledge of the industry, products and supply chains to support better management in product sourcing and product quality assurance.
Here at Sreelance, our team has a vast experience in manufacturing of resilient vinyl floorings, laminate floorings and carpet tiles. Our value in providing comprehensive sourcing solution with full integrity has received many recognition and trust from our clients.
Import floorings from China made easy!
To learn more how Sreelance can support Import Floorings from China for your business with more confidence and less effort, please feel free to email info (a t) sreelance.com or contact us here!
