China’s luggage and travel goods industry is maintaining a positive outlook for the year ahead, despite current economic challenges.
After increasing steadily in the first two quarters of 2008, exports started falling in the second half, contributing to negative year-end growth. Slow sales are due mainly to the global financial downturn but low product differentiation is a factor as well.
As a result, many of the smaller businesses have folded, with several more expected to stop operations incoming months.
Companies are implementing a series of measures that they hope will help stave off further contraction. In fact, more than 70 percent of suppliers surveyed for this report believe exports will grow in 2009.
The following are some of the key developments we see in China’s luggage and travel goods industry:
• Many companies will be reducing prices by about 5 percent in coming months, under efforts to boost sales amid the difficult export environment. Nearly two-thirds of suppliers in this report, regardless of product specialization, will be offering lower quotes in the next half-year.
• Suppliers are now exploring alternative markets, although the EU and the US will continue to be the main destinations. Many suppliers have already done research on the Middle East and Africa, and are releasing designs specific to these areas.
• Makers and traders are implementing measures aimed at providing more flexible client services such as shorter sampling and delivery time, and faster response to inquiries. In addition, they are updating clients with new models more frequently.
• To improve efficiency and cut costs, suppliers are restructuring their workshops to maximize resources and investing in advanced equipment such as computerized sewing machines.
The above is extracted from the Executive Summary of China Sourcing Report: Luggage & Travel Goods
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/baby-travel-care-products
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