Weekly News (EU Market + CBAM 2026) | Germany E-commerce Outlook & Our 2026 Capacity Upgrade

Hello,Here is this week’s Weekly News—curated for European buyers and retail partners who are planning 2026 assortment, pricing, and compliance.

1) Market Watch: Germany’s e-commerce rebound is back on track

Germany’s online retail market is showing clear signs of recovery. A new report from the Cologne Retail Research Institute projects that growth momentum will continue over the next four years, with an average annual growth rate of around 4.2%.

What this means for buyers (2025–2026 planning):

• Platform-led demand will keep rising, and top marketplaces (Amazon, etc.) will benefit most.

• Winning listings will increasingly depend on stable supply, reliable delivery performance, and differentiated product value (not just price).

• For suppliers, readiness is not only “capacity”—it’s also quality stability + faster response + packaging and compliance consistency.

2) CBAM: Scope is expanding, and 2026 is the real turning point

The EU is preparing to expand the scope of CBAM (Carbon Border Adjustment Mechanism). Draft proposals indicate additional product categories may be added, and the Commission is also working to close potential loopholes that could be used to avoid payments.

CBAM will be formally implemented from January 1, 2026, requiring imports of high-carbon products (currently including steel, aluminum, cement, fertilizers, electricity, hydrogen) to bear carbon costs comparable to EU domestic production.

Why you should care now:

• Carbon-related data requests are already becoming more common. In Europe, large platforms and supply chains are beginning to ask suppliers for ESG and carbon footprint documentation.

• The earlier your supply chain is prepared with product-level data and transparent documentation, the easier it will be to avoid disruptions later.

• CBAM is not only a “carbon cost topic”—it’s also a procurement risk topic.

3) Hongmao Garden Update: 2026 capacity upgrade + procurement recommendation

To support your 2026 plans, we’d like to share a key update and one strategic recommendation:

✅ Capacity & quality upgrade (Suzhou factory expansion plan)

In addition to our existing production base in Xianju (Zhejiang), we are planning a new Suzhou factory in 2026.Our goal is simple: higher capacity + tighter QC standards + faster delivery response—so your replenishment and peak-season planning becomes more predictable.

⚠️ Pricing note for 2026 orders

During the expansion, we are experiencing unavoidable cost pressure:

• FX movement: exchange rates dropped around 5% during 2025, impacting margins

• Labor cost: statutory and social insurance costs continue to rise

For these reasons, 2026 orders may face price adjustments.Recommendation: if you have 2026 volume plans, it’s worth discussing forecasting and timeline locking early.

4) Product Spotlight: New French-Style Mailbox (Urban-Friendly Bestseller Potential)

This week we are introducing a new French-style mailbox designed for modern city living:

• Optional post-mounted installation in front of the house

• Multiple secure lock options for letters and small parcels

• Customizable colors to match different retail themes

• Galvanized steel construction for strong durability and weather resistance

If you’d like sizing, packaging specs, or a quotation framework for your market, simply reply to this email.

🎄 Holiday Wishes

As the year comes to a close, we would like to sincerely thank all of our partners for your trust and support.Wishing you a Merry Christmas and a successful, healthy New Year 2026.