China Consumer Industries Grow Most in a Decade | INS Global

China Consumer Industries Grow Most in a Decade

China Consumer Industries Grow Most in a Decade

December 22, 2020

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Key Takeaways

Summary

Across the board, consumer products industries are in line to see their best growth in a decade. For products like China’s bicycle industry, company’s like Guangzhou-based Trinx Bikes are seeing the result of consumers abroad craving exercise and ways to avoid public transport.

Production maxed out in September and October, as companies turned to hiring many temporary workers to catch up with the demand, with orders stretching into 2022. Factories like Trinx now employ about 100 extra temporary workers on top of 1,000 or so regular staff.

Although manufacturing investment was slow to recover, falling 3.5% over the first 11 months, strong export demand helped it rebound in the last quarter. Investment jumped 12.5% year-on-year in November, up from 3.7% in October, according to research from analysts at CICC, an investment bank.

Zhang Qinming, who owns a company manufacturing speakers for European and American markets, says demand is 25% higher than in previous years. He’s been paying his normal staff overtime to keep up and has also hired temporary workers for about 18-19 yuan an hour, 20% more than his full-time workers. As a last resort, he’s leased other factories to take the load.

No one is anticipating any let up in activity and Q1 2021 is predicted to be extremely active in the consumer products sector.

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