According to the data released by the Korean statistics office on May 31, the three important indicators - production, consumption, and investment all declined in April. These three indicators fell again at the same time after 26 months. As one of the leading indicators of the global economy, South Korea's economy is known as the Canary of the world economy. Three important indicators have declined across the board, indicating that the probability of the world economy stepping into the sluggish trend has greatly increased. Moreover, in the context of the lifting of the epidemic prevention measures against COVID-19 in South Korea, the decline of the indicators is particularly eye-catching.
1、 Looking for business opportunities in a crisis
The impact of regional conflicts is global. The pressure on the Federal Reserve to raise interest rates has increased sharply. The American people are worried that the rising energy prices and stock market turmoil caused by the deterioration of the situation in Ukraine will further shrink their wallets.
The depreciation of the euro indicates that Europe's purchasing power has been further weakened. In addition, the sharp rise in raw materials brought about by the conflict has led to an increase in the cost of living in Europe, which is bound to affect the purchasing power of the general public in Europe. Many sellers in the Eastern European market began to slow down or suspend their business and we're in a wait-and-see attitude.
With the temporary exit of some leading enterprises, new business opportunities have emerged in the cross-border e-commerce market in central and Eastern Europe. There are also ways to downgrade consumption in Europe. The market matches the consumption-ability of European people, and products with high-cost performance are timely put on the shelves to meet consumer expectations and ensure sales. This is a new opportunity.
This regional conflict has brought not only difficulties but also new demands. We rely on our sensitivity and insight to find business opportunities in the crisis, and the fastest channel to obtain information and knowledge is the official live broadcast of major platforms and service providers, which is also free of charge.
Europe has always been the focus market for Chinese cross-border sellers, but Chinese sellers basically focus on Western European countries such as Britain, France, and Germany, so everyone ignores Poland, a market with huge potential. The Polish market is becoming one of the largest e-commerce platforms in Eastern Europe, with an annual growth rate of 22.6%.
The promotion of the Belt and Road initiative has enabled China to have excellent trade relations with Eastern Europe. In the opportunity for Russia and Ukraine's post-war economic revitalization in the future, China's neutral position and initiatives to actively promote the reconciliation between the belligerents will win the favor of this market, which will help Chinese sellers to explore the Eastern European market.
Geographically, Eastern Europe and China belong to the Eurasian continent, and the geographical distance is not far away in theory. In ancient times, there was a famous Silk Road. The central European trains have reached more than 160 cities in 22 European countries. China's direct flight route network has also covered 40 countries along the Belt and Road including Eastern European countries, strengthening the advantages in logistics and transportation.
Affected by the epidemic, the growth momentum of e-commerce in Eastern Europe is very rapid, far surpassing the Western European market with weak growth. Moreover, the demographic dividend in the Eastern European market is very considerable, with a large population base, young physiology, and sufficient consumption vitality. According to the European e-commerce report 2021, the proportion of Internet users in Eastern Europe has reached 78%. When these Internet users cultivate online shopping habits, it has become the goal of the company to follow up.
2. Now is the window period. For central and Eastern Europe, seizing the opportunity will be unfavorable.
Under the impact of the conflict between Russia and Ukraine, the COVID-19, and extremely high temperatures, more than 20 countries around the world have implemented a ban on food exports, which makes people full of doubts about the prospects of international food security. The United Nations' global food crisis report 2022 also issued a warning that mankind may face the biggest food crisis after World War II, and as many as 1.7 billion people are suffering from poverty and hunger. World Bank President said that the current food security crisis will last for several months, and may even last until next year. Food crises often occur, but the crisis of trust brought about by this crisis will indeed impact the world economy, which reminds us of the prosperous soft consumption during World War II.
Although the current global economic recession has not been particularly obvious, there are some signs. On May 23, snap, an American social media company once considered the next social giant, issued a financial warning for the second quarter. In its report to the US Securities and Exchange Commission, it said that since our guidance was issued on April 21, the macroeconomic environment has deteriorated faster than expected. This is a very important window period. We need to pay close attention to it and grasp the relevant opportunities.
When more people around the world begin to worry about food security, the recession of the world economy may not be the most important thing to worry about, because new business opportunities have emerged. After all, tomorrow will come earlier than next year.