Suppliers of crafts, gifts and novelties in China are cutting prices, exploring new markets and expanding their product range to attract orders amid the financial crunch that crippled many companies at the start of the year.
The massive industry is anticipating better sales, with some makers projecting export growth of 20 percent in the next 12 months.
Additionally, China government initiatives such as facility upgrades in key manufacturing zones, subsidies to international trade show participants and increased export tax rebates help bolster the positive outlook.
To enliven the business climate further, most craft, gift and novelty suppliers are continuously releasing new designs. This is being done mainly through the more-creative use of finishes, surface treatments and accessories.
Others are also attracting buyers by reducing prices between 5 and 15 percent.
The following are some of the key trends we see in China’s crafts, gifts and novelties industry:
• More companies are venturing into South and Central America, the Middle East and Africa to prop up revenue, even as the EU and the US remain the chief export markets. The emphasis on domestic sales is likewise increasing.
• The use of innovative accessories is becoming more popular mainly to broaden product differentiation, especially in the high-volume crafts segment. Polyresin figures accentuated with wire, optical fiber and glass trimming are examples of these.
• Multiple functionality is the keytrend in the electronic gifts segment. For instance, novelty digital clocks that work as photo frames, radios and speakers are being produced in greater numbers.
• More gift packaging exporters are taking the environment-friendly route, with the heightened use of recycled paperboard, water-based adhesive and paint, and nontoxic dyes.
• Quotes are likely to decline or stay the same in the months ahead as suppliers respond to the aggravated price sensitivity and weaker purchasing power of buyers.
The above is extracted from the Executive Summary of China Sourcing Report: Crafts, Gifts & Novelties
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/crafts-gifts-novelties
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