Look up the latest financial news from any major international news outlet and two topics are likely to surface amongst the current top stories: the European Debt Crisis and the possible effects this will have on the fast growing Asian economies. Recent events clearly show that more hard financial times are drawing closer as the eurozone economies of Greece, Ireland, and Portugal inch toward default and fears of contagion heighten amongst EU member countries, especially in Spain, where a default could spell a meltdown of the entire European Monetary Unit.
With this European “double dip” on the horizon, many are looking to Asia, which, no doubt will be affected. Chinese investors today expressed that it would show no interest in bailing out European debt stating, “We (China) can’t just go save someone. We’re not saviors. We have to save ourselves.” Analysts are also saying that the economic downturn caused by fears arising from the European debt crisis might have a negative effect on fast growing export-driven Asian economies such as China and Indonesia.
Where does this all put online wholesale markets based out of China? While figures have shown that the Chinese manufacturing industry has contracted in the last 3 consecutive months, online wholesalers in China are optimistic that this will not affect their profits in the near future. Online wholesalers are hoping that the affordable prices that they are able to offer customers for electronics, apparel, and other consumer items will continue to drive buyers to their sites especially as consumers again prepare to cut spending.
In fact, many online wholesalers can trace their origins to the 2008 global financial crisis, many of them starting as a response to the increased demand for lower priced goods when consumer spending was at an all-time low. Fast forward a couple of years and people continue to patronize Chinese online wholesalers for the same reasons that they did back in 2008. It is no doubt then that online wholesalers are staying optimistic despite fears of another system-wide meltdown should global markets face the sudden decline of the euro.
What’s clear to Chinese online wholesalers is that customers are still buying, whether in Europe or in any other region for that matter. Business is just as healthy as any other day. Online wholesalers are also attributing customer loyalty to an improvement in product quality brought about by better research and development and manufacturing practices amongst growing Chinese product manufacturers. The improvements go back full circle to Chinese online wholesalers who bring new products to the forefront and process the bulk of orders directly from manufacturers.
Whatever the case is, many Chinese online wholesalers have expressed their determination to stay afloat no matter what happens in the world markets and continue to provide quality computers, security devices, and other products at affordable prices that will be hard to resist. Many even encourage customers to spend now in anticipation of a possible rise in Chinese manufacturing costs. At the moment, as with the European financial crisis as a whole, only time can tell.