Suppliers of bags and wallets in China are positive 2010 will bring better prospects for export sales, but are nonetheless being prudent about their expectations. While several companies have been reporting improved business in recent months, it is still uncertain whether exports are on their way to full recovery or if the rebound is only temporary.
In the eight months to August 2009, China shipped out nearly 333 million kilograms of fabric, leather and plastic fashion bags worth $2.2billion. It is difficult to as certain how the volume of exports has changed year-on-year as previous data was collected in terms of pieces and not kilograms. Overseas sales, however, fell 12 percent. During the same period, the country sent abroad more than 235 million wallets at a value exceeding $686 million, down 21 and 3 percent compared with the previous corresponding span.
The following are some of the key developments we see in China’s bagsand wallets industry.
• Companies are continuing to invest in measures to boost efficiency.This measure has, in fact, kept many factories in the black, even when orders ran low.
• Suppliers are increasing their presence in emerging economies such as the Middle East and non-EU countries, believing that doing sowill help bolster sales. Shipment shave actually been increasing at a fast pace, with exports to the Middle East growing 153 and 102 percent for fashion bags and wallets in 2008.
• To boost overseas revenue, makers are increasing their participation in trade shows and online marketing promotions. In addition, some are offering samples of small or simple models for free. Fees charged for larger or more complicated prototypes can be refunded as well, but only once aminimum quantity is ordered.
• Despite the heightened focus on new markets, businesses will continue targeting traditional destinations. Among the respondents in Global Sources’ survey, 88 percent indicated that the EU and North America will remain their primary export markets.
The above is extracted from the Executive Summary of China Sourcing Report: Bags & Wallets
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/bags-wallets
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