China suppliers of vehicle security and accessories are looking forward to are bound in exports as the economic recovery of major markets becomes more solid. Many are taking the coming months as a chance to boost key competencies in preparation for greater uptake.
This optimistic projection follows months of exports plunging at double digit levels. Between January and August 2009, customs statistics show total shipments of vehicle alarms and door locking systems, audio and visual signaling equipment, seats and exterior accessories such as bumpers, fenders,bonnets and kits plummeting 37percent year on year. Revenue sank at anearly similar rate to $1.5 billion.
In the next 12 months, suppliers will continue to solidify their footholdin the EU and North America, which currently account for more than half of export revenue. A number of businesses will also explore market opportunities in the emerging economies of the Asia-Pacific region,Eastern Europe, South and Central America, Africa and the Middle East.
The following are some of the key trends we see as suppliers nurture growing demand in these areas:
• Many companies will keep prices stable in the months ahead. For several enterprises, quotes have not changed since the end of 2008, when they implemented reductions of about 5 percent to stimulate demand.
• With the cost of plastic and other manufacturing inputs again on therise, most suppliers are shifting their sales mix toward higher-value lines to minimize the effect of additional expenses on price and profitability.
• In line with the move upmarket,more attention and resources will be allocated for R&D. Besides exploring new materials, finishes and technologies, several suppliers will actively engage in market research.
• Upcoming releases will highlight converging technologies, particularly n the electronics segment. As part of efforts to differentiate and raise product value, multiple functions will be integrated in designs.
• Releases will remain primarily designed for the aftermarket. With the industry’s continued focus on the sector, ease of installation and operability will also be a major consideration in R&D.
The above is extracted from the Executive Summary of China Sourcing Report: Vehicle Security & Accessories
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/baby-travel-care-products
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