China’s fashion jewelry and watch industry is optimistic of prospects for the rest of 2009, even while the difficult export environment is forcing the supplier base to contract.
During the past year, overseas sales grew by a marginal 5 percent to $2.4 billion. In terms of export volume, however, shipments fell 14 percent to more than 595,000 kilograms of fashion jewelry and 550 million watches. The decline continued through the first three months of 2009, with sales registering 6 percent lower than the previous corresponding period.
Low demand from major markets is the primary reason exports are slowing. This, in turn, has pushed several plants to close. Last year, about 10 and 5 percent of jewelry and watchmakers, respectively, folded as a result of the difficult business climate.
Even so, companies are projecting year-end overseas sales gains. Among the suppliers surveyed for this report, 95 percent are optimistic of growth. About one-third of them are even projecting exports to increase more than 20 percent.
The following are some of the key developments we see in China’s fashion jewelry and watch industry:
• Many companies will be reducing prices by about 5 percent in coming months, under efforts to boost sales. The majority of suppliers, however, will raise quotes 5 to 10 percent, especially since the cost of major materials has been increasing in recent months.
• Businesses are taking advantage of local government support to help improve sales. These include availing of short-term loans, B2B allowances and intensified marketing efforts.
• Companies are working together to minimize overhead, including purchasing components in bulk to negotiate discounts from suppliers.
• To improve efficiency and cut costs, makers are investing in worker training and advanced machinery.
The above is extracted from the Executive Summary of China Sourcing Report: Jewelry & Watches
To learn more about this report, visit: http://www.chinasourcingreports.com/csr/jewelry-watches
More Useful Links:
Global Sources Online: Verified suppliers for quality buyers.
Download Global Sources e-Magazines (free): For industry-specific news, product information & verified suppliers contact details.