China Promotional Items Industry

An Expert's View about Gifts, Games and Toys in China

Posted on: 29 Mar 2010

China’s $5 billion promotional items industry is facing a tough year as the current global economic crisis has restrained export demand. Reduced shipments to hard-hit markets such as the US and Europe have resulted in a cautiously optimistic sales forecast for 2009.


Premiums suppliers are exercising measures to help spur revenue growth. These include either raising prices to stretch out profit margins or keeping quotes stable to attract more buyers. Suppliers are also significantly reducing minimum order requirements and delivery lead times, which are important to clients when sourcing high-volume products such as promotional items.


With these strategies in place, Chinamakers are hopeful that sales can still rise by 10 to 20 percent despite the current downturn. The stabilization of the yuan in recent months and the China government’s revised tariff rates in 2009 have also boosted suppliers’ optimism.


The following are some of the keytrends we see in China’s promotional items industry:

• More suppliers are using environment-friendly materials in response to the growing popularity of “green” products. In the bags segment, for instance, designs constructed from organic cotton and biodegradable nonwoven fabric are receiving heightened attention. Increased functionality is another key trend especially in the gift electronics segment. For example, USB powered premiums in paper shredder, air purifier, foot warmer and shaver designs are being produced in greater numbers.

• Wearables continue to be the biggest premiums category, accounting for 25 percent of featured suppliers’ total promotional item exports. Companies are widening their design assortments through the use of various fabric types and logo-application techniques.

• Despite the recession, the US and Europe will remain key target markets, but suppliers will increase focus one merging markets such as non-EU countries, South America and Russia.




The above is extracted from the Executive Summary of China Sourcing Report: Promotional Items


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Posted: 29 March 2010

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