China’s tableware and cutlery industry looks forward to higher overseas revenue in 2010 as the economic slow down eases. Thanks to various cost-cutting measures and revised export strategies, many companies in the country are able to sustain their businesses amid the global financial crunch.
In fact, key categories such as ceramic, porcelain and glass tableware, and flatware all experienced modest YoY sales growth in the first nine months of 2009.
The increased focus on alternative foreign markets, as well as the shift to the midrange, a price segment that has become more popular during the crisis, helped cushion the impact of the recession.
The following are some of the trends we see in China’s tableware and cutlery industry:
• More suppliers of tabletop accessories are taking the environment-friendly route to address the rising demand for “green” home products. Examples of these include cork and bamboo placemats, and RoHS-compliant electronic peppermills.
• Some ceramic and porcelain dinnerware makers switched from high-end to mid range manufacture, in response to the reduced purchasing power of buyers.
• Conversely, a number of melamine dinner ware and flatware suppliers are moving upmarket to give their products better margin potential.
• Companies are highlighting product durability through the use of better materials. A handful of glass tableware makers, for instance, are now releasing models in scratch resistant tempered glass.
• While the US and the EU are still the primary target markets, exports to emerging destinations such as Southeast Asia, South Africa and the Middle East are increasing.
• Suppliers are either raising their prices by up to 10 percent to have bigger room for profit, or keeping quotes stable to stay competitive.
The above is extracted from the Executive Summary of China Sourcing Report: Tableware & Cutlery
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/tableware-cutlery
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