China’s fashion accessories industry is hopeful of an exports rebound in 2009.
Outbound shipments in nearly all product lines contracted in 2008, due mainly to the global economic crunch. But higher VAT rebates, preferential government policies and more stable manufacturing costs are leading companies to forecast moderate growth.
Some hosiery makers are even projecting sales to triple in 2009. Apart from the factors mentioned above, quota elimination is bringing rise to a more positive outlook for the months ahead.
The following are some of the keytrends and developments we see in China’s fashion accessories industry:
• To minimize losses and utilizeidle production lines, many companies have turned to the domestic market. But bigger profits can still be gained in the export arena. In addition, the majority of suppliers do not have an established local brand. As a result,they are not likely to pursue long-term partnerships with domestic retailers in the months ahead.
• The US and the EU will remain the major export destinations. Insufficient knowledge of trading policies at emerging markets such as South America and Africa are preventing companies from expanding fully into those regions.
• Makers continue to adapt to buyers’ changing sourcing habits. In addition, they are implementing measures aimed at providing more flexible client services such as reduced MOQ and waived tooling costs.
• Suppliers are upgrading their equipment to improve efficiency. Advanced and imported units such as Stäubli jacquard weaving machines from Switzerland can also enable them to offer value-added designs. Some are taking steps to vertically integrate as well, including setting up wholly owned silkworm breeding centers.
The above is extracted from the Executive Summary of China Sourcing Report: Fashion Accessories
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/fashion-accessories
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