China A/V Accessories Industry

An Expert's View about Audio and Video Equipment in China

Posted on: 29 Mar 2010

China’s A/V accessories industry is one of the most dynamic, sustained by the growing application range and the diversity of the selection. Exports are buoyed by the popularity of portable entertainment and multimedia devices.


Companies expect an up turn in overseas business despite forecasts that demand is likely to dip. To achieve this, they are strengthening their position in traditional markets and exploring non-EU, Middle East and Asia countries.


China suppliers continue to leverage their price advantage over foreign companies to counter act the effects of the current financial slump. The strategy is crucial as production is concentrated on the low-end and mid range segments, where competitive quotes are preferred.


To beef up margins, many companies are moving toward high end models or diversifying to related products.


Others are increasing their capacity for the domestic front.


The selection available is composed of electronic and non electronic products. The former continue to be the main stream, accounting for about70 percent of the country’s turnout.


Maturing technologies and on solidated supply chain facilitate R&D for the entire range. Contemporary designs and multifunctionality are under scored across all types.


Much of the product development in this line is on accessories for iPods and MP3 and MP4 players, which dominate the line.


Audio performance and compatibility are the priorities of iPod accessories makers, particularly those that produce speakers.


Suppliers for the MP3 and MP4 player line, specifically portable speakers, highlight enhanced sound quality.


The following are some of the key trends observed in China’s A/V accessories industry:

• Although price competition emains the industry’s biggest challenge, many suppliers raised their quotes to boost revenue.

• The majority, however, limited adjustments to less than 5 percent.Those that opted to implement reductions did so by as much as 4 percent.

• To enhance competitiveness, some suppliers are increasing their R&D investment in efforts to release more innovative units.

• Even as they under take product quality upgrades, companies are keeping to their cost reduction thrust by improving operating efficiency.

• Makers are locking in prices based on the time orders are placed to help them recoup losses from the economic downturn.

• Some suppliers have adopted real time settlements for US dollar denominated transactions.

• Large enterprises are keen to acquire core technologies in a bid todevelop components in-house and keep outlay manageable.



The above is extracted from the Executive Summary of China Sourcing Report: A/V Accessories


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Posted: 29 March 2010

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