Alibaba International released its January 2023 Cross Border Index on January 9. The index shows that the snowstorm in the United States has driven growth in exports of flexible and custom-made clothing in China, with exports of cold-proof clothing on the platform up 29% year-on-year. And in Europe, home renovation is becoming a craze, and Chinese building materials merchants may see new business opportunities. At the same time, the new energy sector also saw growth of over 92% in quality business opportunities on the platform, with demand for Chinese new energy products in the European market growing further.


Demand for customised apparel from the US grows in China


Along with the onset of winter in the northern hemisphere, many parts of the US are seeing a new round of winter storms and other severe weather. This change has also "heated up" China's apparel foreign trade supply chain.


On Alibaba International, demand for all types of clothing in the US market has picked up significantly, with commuter and cold-weather clothing exports from China performing well, including a 29% year-on-year increase in the export of cold-weather clothing for coats.


According to the January 2023 Cross Border Index released by Alibaba International, apparel-related categories accounted for eight of the platform's "top ten rising categories with high overseas order growth" in recent times, with men's autumn clothing and autumn trousers orders ranking first and second respectively.


As a result of the sudden change in weather, US consumers saw a surge in demand for flexible and customised clothing from China. As a result, "quick response" has become the keyword for Chinese garment foreign trade enterprises to seize business opportunities.


Saier is a foreign trade enterprise of clothing from Weifang City, Shandong Province. From order to receipt, the company can deliver customized garments to the United States within three weeks.


The company's foreign trade operations director Sun Hongxiang said that since October last year, jumpers and cotton clothing class orders from the United States have overwhelmed the enterprise. "Although it is said that the foreign trade situation of the textile industry is urgent in these two years, but our small single quick return of custom-made clothing class orders can maintain a 100% growth rate every year."


Alibaba International Station industry leader Qin Fen said that the recent warming of foreign trade in clothing, do not exclude the impact of short-term sudden accidental factors, but in the long run there is also a certain inevitability. "As domestic merchants continue to pay more attention to cross-border e-commerce platforms and improve their operational capabilities, the sensitivity and responsiveness of enterprises to capture sudden demand from overseas markets is also improving. As a result, Chinese foreign trade enterprises are always able to 'outrun' other competitors at the first time thus gaining market dividends."


Business opportunities emerge in overseas home renovation


In addition to the rising foreign trade garment industry chain, overseas home renovation is also ushering in a new round of boom.


The Alibaba International Cross Border Index shows that this demand is mainly coming from the EU's new requirement for new houses to meet low energy building standards, while for existing stock houses, the EU is also planning to renovate all buildings. This also means that Chinese builders with overseas engineering capabilities are expected to be the beneficiaries of this business opportunity.


The Alibaba International Cross Border Index predicts that the EU's building renovation market could increase from US$95 billion to US$1012 billion by 2026.


The surge in market demand will also drive growth in China's exports of home improvement building materials. Foshan Nanhai Hongze Wood Co Ltd, a foreign trade enterprise specialising in the North American market, has products covering cabinets, wardrobes, bathroom cabinets etc. In 2022, the company's annual sales grew by about 25%, half of which came from cross-border online channels. Liu Weinan, head of Hong Zu Wood, revealed that the company's overseas home improvement market has been on fire for the past three years of the epidemic, with an annual growth rate of more than 20%.


Alibaba layout carbon compliance services


According to the Alibaba International Station cross-border index forecast, China's new energy products exports are expected to grow by 74% in 2023. Currently, the number of quality business opportunities (real buyer enquiries) in the new energy industry on Alibaba International website has grown at a rate of 92%. Previously, on Alibaba International, the export growth rate of the new energy industry has maintained triple-digit growth for three consecutive years.


It is understood that the products involved in the new energy industry mainly include photovoltaic modules, lithium-ion batteries and so on. Europe is its most important export market. Recently, the European Parliament and EU governments have announced that they will formally impose a "carbon tariff" from 2026, and importers will have to declare the carbon emissions contained in their goods from October 2023.


To this end, Alibaba International is working with third-party certification bodies to actively lay out carbon compliance services, and is expected to launch a carbon compliance product in April this year to help international website merchants actively start carbon footprint accounting services.