China’s pet products industry has remained fairly stable despite theadverse market conditions that crippled many export and manufacturing industries in the country.
Apart from a steady supplier base, most companies were able to keep their prices fixed in the past three months, an indication of good business. Some are even planning to raise their capital expenditure by as much as 50 percent in 2010.
But since the line is very broad, it is difficult to determine the exact value and volume of the country’s overseas shipments. In fact, China customs does not track pet supplies shipments independently.
Nevertheless, most makers agree that overseas sales are on the rise. In the survey conducted for this report, more than 60 percent of respondent santicipate that export revenue will increase 10 to 20 percent in the next 12 months.
The following are some of the key trends we see in China’s pet products industry:
• Companies from related sectors such as children’s garments and leather goods will continue to join the line. Such suppliers are venturing into pet apparel, and collars and leashes, respectively.
• Prices at most enterprises remained the same in the past quarter, thanks to the more stable material costs. When the industry was analyzed in July 2008, the majority of respondents planned to raise quotes, many of which did so by up to 10 percent.
• Compliance with international quality standards has improved industry wide, as export markets become keener on promoting pet safety, nutrition and hygiene. A growing number of chew makers, for instance, are obtaining certification from HACCP, BRC and US FDA.
• More suppliers of pet apparel are releasing novelty, human-style designs, such as sanitary pants, swimsuits, gowns, tuxedos, stockings and gloves. Some dog collars and leashes are also embellished with synthetic jewels, rhinestones, crystals and other accents used typically in high fashion.
• To address the “green” market, some pet toy makers have developed designs made of loofah sponge and other natural and biodegradable materials.
The above is extracted from the Executive Summary of China Sourcing Report: Pet Supplies
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/pet-supplies
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