Europe's energy crisis has increased the demand for heating appliances, causing Chinese heater sales to spike significantly. This situation does a great job of demonstrating how a localized issue can impact global trade.
In this article, we will discuss everything you need to know about Europe’s energy crisis and its huge impact on global trade. We’ll examine what this crisis is and how it started. From there, we will dive into some key findings from a survey that Alibaba.com recently ran to assess demand trends.
Many countries pulled out of their business arrangements with Russia. Since Russia is a major global producer of natural gas and other fossil fuels, many nations that formerly relied on Russian energy companies are feeling the effects of the situation in the form of rising energy costs and energy shortages.
This has manifested into the current energy crisis in the European Union and beyond.1 The nations within this continent are feeling shortages and rising prices to the extreme. Individual governments are stepping in with rules and restrictions that will likely jeopardize the comfort of individuals.
France and Italy, for example, have placed limitations on how people can heat their homes, setting a maximum temperature and suggesting that people cut the heat for specific time periods.2 This will be problematic for many people as winter approaches.
These restrictions make up just one piece of the puzzle. A study conducted across Europe indicates that energy bills in Europe have increased by 90% in the past year, and some cities have experienced increases of up to 111%.3
This crisis puts many people in need of a solution to help them pull through. European retailers are put in a position to help these people, but they can only fulfill these needs with the help of global suppliers.
With winter coming, the limitations on energy consumption and the rapidly growing energy bills will likely pose issues for many people across Europe. People are forced to seek other solutions to keep their families warm during the colder months that are ahead.
Although this demand is primarily focused on Europe, these European retailers are shopping elsewhere to gather the supply they need to help their communities through this time.
The demand has been felt in other nations, specifically China. In fact, Chinese heater sales have skyrocketed in recent months, and experts anticipate that they will continue to rise into next year.4
Even those who may prefer to source heaters locally are forced to expand their searches to ensure that they are prepared for the upcoming cold winter. Whether this will reestablish long-term partnerships or simply serve as a short-term fix is yet to be determined.
Alibaba.com recently conducted a survey to assess the demand in the global market for some goods related to Europe’s energy crisis. The results indicate that people are eager to prepare for the cold season with reduced access to energy to heat their homes.
Let’s explore a few notable demand trends that capture the global effects of Europe’s energy crisis.
According to the survey, the demand for electric heating appliances rose by 40% over the past 90 days. These products range from space heaters to less conventional heating products, like blankets.
The demand for electric blankets increased by 50%, electric heaters increased by 70%, and pump water heaters increased by 100%. These trends are significant because they showcase the gravity of the crisis at hand.
These products are going to be very important for those who typically heat their homes with natural gas since it allows them to tap into electricity as an energy source, which may be cheaper for many.
Winter jackets and coats are another category of products with high demand since people can rely on these items to keep them warm without worrying about energy implications. The survey observed several significant leaps in coat sales in the last several months.
The demand for men's jackets increased by 130% over the past 90 days. The demand for down coats increased by 160%, women's jackets increased by 180%, and women's down coats increased by 180% in the same time frame.
If the crisis persists, some other items that could have similar trends include socks, scarves, sweaters, hats, gloves, and other apparel that is designed to keep people warm.
The products we covered above are all quick fixes to the impending problems caused by the European energy crisis. However, moving forward, it is possible that the European countries that are affected by these issues could shift gears to use more permanent solutions.
Solar panels and other technology for capturing renewable energy could possibly garner more significance as these shifts occur.6 This would help Europe nations reduce their reliance on other nations for energy production.
According to the survey results, the demand from European countries is growing faster than other countries. Some of the top demanding countries include the Netherlands, Germany, the United Kingdom, and Poland.
It is worth noting that the Netherlands, Germany, the United Kingdom, and Poland are ranked among the top 7 energy consumers in Europe.7 Since these nations are all significant energy users, it makes sense that they would feel the effects of the crisis the hardest and, consequently, demand the most products in search of a solution.
Suppliers are working around the clock to meet the demand of European consumers during this crisis. In fact, over 30% of suppliers on Alibaba.com have responded that their factories are operating at full capacity since they have received many reorders and rush orders.
Although this situation is unfortunate for many across Europe, B2B sellers from around the world have the opportunity to step up and help supply this growing demand. Suppliers who are able to meet this demand can extend a lifeline for those who need it in this crisis.
Suppliers who are looking to help meet the demand for heating appliances can leverage a B2B e-commerce marketplace, like Alibaba.com, to connect with buyers who need these products.
Since Alibaba.com is used by more than 40 million active buyers, prospective buyers recognize the platform as a trustworthy destination for sourcing the products that they need.
In addition to being one of the most popular B2B e-commerce marketplaces in the world, Alibaba.com provides a holistic set of tools to support B2B trade. These features include smart product listings, brandable Minisites, Trade Assurance, communication management, and special tools to facilitate international trade.
Open a seller account on Alibaba.com to get started in no time.