Stimulating growth and counteracting the impact of the global economic crunch are the biggest endeavors of holiday and party decorations suppliers in China this year. Raising product quality, diversifying designs, lowering MOQ and reducing delivery time are the key steps being taken to reestablish overseas sales at precrisis levels.
Despite the spate of factory closures and massive revenue losses that started in 2008, most companies are optimistic that business will pick up in the coming months and holiday seasons. In fact, the Christmas ornaments segment has already seen gradual export gains in the first quarter of 2009.
Last year, the export volume of Christmas-related products was in a down turn, as demand from overseas buyers diminished due to budget constraints.
Saleswise, minimal growth was seen but this is mainly because of the higher per-unit value.
Although shipments of party supplies such as costumes, hats, caps and decorations are not tracked by China customs, most makers interviewed for this report have been experiencing a revenue slump since 2008.
The following are some of the key trends we see in China’s holiday and party decorations industry:
• More manufacturers are venturing into trading as factory operations are becoming more expensive. As such, the number of trading companies has increased by about 25 percent over the past 12 months.
• Christmas ornaments in non traditional styles and colors, and Halloween supplies in less-scary themes are receiving heightened attention. Makers of party decorations are also broadening their selections by using different materials and printing methods.
• The export focus will continue to be on North America and the EU. In fact, none of the suppliers interviewed for this report pointed to alternative destinations such as Eastern Europe or the Middle East as their target markets for 2009.
• Prices will remain in an upturn as companies protect profit margins from further thinning. Generally, most makers will impose markups of no more than 10 percent.
The above is extracted from the Executive Summary of China Sourcing Report: Holiday & Party Decorations
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/holiday-party-decorations
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