China Supplier Survey - Global Sources

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CHINA SUPPLIER SURVEY

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China Supplier Survey

2nd Half 2006

Products• Air conditioners• Automotive ligts• Ceiling light fixtures• Eyewear• Leather garments• Massagers• Pet products• Solar panels

Survey• Export prices• Capacity• Sales Outlook• Target markets• Challenges• Efficiency• Capability• Industry trends

Fujian

Guangdong

Zhejiang

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TABLE OF CONTENTS

OVERVIEW Price upswing continues ................................................................................................................................................ 3 Demographics ................................................................................................................................................................ 4

SURVEY RESULTS Export prices .................................................................................................................................................................. 5 Export price increase ...................................................................................................................................................... 6 Capacity ......................................................................................................................................................................... 7 Capacity expansion ........................................................................................................................................................ 8 Export sales ................................................................................................................................................................... 9 Export markets .............................................................................................................................................................. 10 Challenges ................................................................................................................................................................... 11 Efficiency improvement ................................................................................................................................................ 12 Capability improvement ............................................................................................................................................... 13 INDUSTRY TRENDS ANALYSIS Air conditioners ........................................................................................................................................................... 14 Automotive lights ......................................................................................................................................................... 15 Ceiling light fixtures ..................................................................................................................................................... 16 Eyewear ....................................................................................................................................................................... 17 Leather garments ........................................................................................................................................................ 18 Massagers .................................................................................................................................................................... 19 Pet products ................................................................................................................................................................. 20 Solar panels .................................................................................................................................................................. 21

Notes

This Global Sources China Supplier Survey was conducted by phone and in-person interviews with a wide range of exporters in mainland China and Hong Kong, chosen to select a representative cross-section of each industry in terms of company size, product specialization and geographic spread. The period of the survey was approximately 20 weeks ending November 30, 2006.

All survey questions are single choice. Not all canvassed suppliers answered all questions. Results were calculated by dividing the totals by the actual number of responses for each question.

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof).

Copyright �006 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

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OVERVIEW

Price upswing continuesPrices of a range of China-made products will remain on an upward spiral in 2007. Of the 509 suppliers interviewed for Global Sources’ half-yearly China Supplier Survey, 76 percent plan to raise prices to meet higher operating expenses.

This maintains the trend shown in our previous two surveys.

In 2H05, 63 percent of suppliers indicated they would raise product prices, while our 2H06 survey revealed that 70 percent of suppliers were of the same mind. Both surveys canvassed a diverse range of export industries. A major factor driving greater manufacturing outlay in the industries covered by the latest survey is the sustained high cost of key raw materials. The greatest rise was seen in brass, which last year reached triple its May 2005 level.

Labor costs have also continued to climb, particularly for companies in the eastern coastal provinces. The acute shortage of workers in these areas has had makers offering higher wages and better nonsalary compensation to minimize turnover.

Several companies affected by the EU’s RoHS have also cited compliance with the directive as a factor in pushing up their operating costs. According to several respondents, meeting the levels required for lead, mercury, cadmium, hexavalent chromium and other materials raised total production costs by 5 to 20 percent.

Part of this is due to the fact that RoHS-compliant raw materials and components are currently more expensive. They are also sometimes difficult to procure since many suppliers of these components have only just begun preparing models, management systems and production lines for compliance. Of those that

Industry Suppliers Export sales

Mthly output

Mthly exports

Export ratio

$mn/yr mn units mn units %

Massagers 68 455 3.08 2.42 79

Ceiling light fixtures 70 859 19.06 11.48 60

Automotive lights 70 224 22.57 16.88 75

Eyewear 61 252 23.75 21.45 90

Leather garments 77 387 1.07 0.94 88

Air conditioners 41 1,694 2.45 0.92 38

Pet products 73 181 14.02 13.42 96

Solar panels 49 1,343 54.26* 45.52* 84

Total 509 5,�95* Megawatts

can already meet RoHS, most are still trying to recoup product development costs and capital investment.

In addition to facing higher expenses for RoHS-compliant products, affected makers have had to invest in upgrading their own management systems and production lines.

Despite significant increases in operating costs last year and projections of still greater expenses in coming months, most makers will be limiting price markups within 10 percent to remain competitive.

With large supplier bases in each of the surveyed industries, and operation primarily on an OEM basis, many companies are reluctant to raise quotes beyond this level for fear of losing customers. Of the 386 respondents that indicated they would be increasing prices in the next 12 months, less than 15 percent plan on implementing a markup of more than 10 percent.

For most makers in China, keeping prices competitive means absorbing a large portion of the costs they are incurring and hence, accepting slimmer margins. Because of this, 68 percent of suppliers surveyed regard price competition and higher raw material costs as the main threats to

revenue growth in the next 12 months. The combination of these two factors has already caused many suppliers to close down in the past year.

In answer to consolidation across some industries, remaining makers are hoping to obtain desired profit levels, even with smaller margins per unit, by increasing output. Suppliers are generally optimistic they will be able to achieve the level of output needed, with orders from overseas buyers generally expected to increase in coming months. Of the companies surveyed for this report, half are anticipating export sales growth of more than 10 percent. Many are increasing capacity to accommodate additional orders.

Increased shipments to the EU are expected to be the main driver of export growth. Most suppliers regard the region as their most important target market, since they can obtain higher prices compared to the US. Another incentive for focusing on the EU is that its recent expansion means a larger market for a single model.

In some industries, suppliers will be generating additional cost savings by streamlining operations. In line with this objective, 60 percent of

Profile of respondents

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Location Suppliers Export sales

Output Exports Export ratio

$mn/yrmn units mn units

%

Zhejiang 183 951 34.92 31.13 89

Guangdong 162 1,979 29.07 18.58 64

Jiangsu 53 1,127 6.91 5.36 78

Fujian 27 170 4.60 4.09 89

Shanghai 19 287 0.94 0.76 80

Shandong 13 250 0.45 0.22 49

Taiwan 5 34 2.46 2.45 100

Hebei 10 26 0.06 0.06 94

Other 37 573 6.58 4.88 74

Total 509 5,�95* Includes solar panels’ output and exports in megawatts.

Location

Business type

Ownership

Export markets

Profile of respondents

Taiwan6%

Mainland China79%

Hong Kong �%

Publicly listed�%

Otherforeign

8%

Zhejiang�6%

Guangdong��%

Jiangsu�0%

Fujian5%

Shanghai�%

Other��%

Manufacturer: Direct exporter

69%

Trading company

�%

Nth America�7%

EU�8%

Europe (non-EU)

�6%

Mideast/Africa��%

Asia�0%

Other8%

Manufacturer: Exports via

agent�8%

SOE�%

survey respondents said they would be investing in advanced machinery and management systems. Twenty-six percent will be reducing losses from wastage and defects to maximize the use of raw materials and other inputs, while the rest intend to become more vertically integrated.

With their sights on a more long-term growth, many companies will be developing competencies that will help them achieve a more sustainable competitive advantage rather than relying solely on price.

Thirty-five percent of respondents will be focusing on enhancing time-based competencies, specifically in product development and delivery, to meet demand more effectively. For 29 percent of suppliers, having a well-trained workforce is of primary importance in light of more stringent product and manufacturing requirements.

More than 20 percent of respondents will be expanding their range of models to meet the needs of different markets and reduce the risk of loss when demand from one segment declines. The rest will be seeking more product approvals.

DemographicsGlobal Sources’ China Supplier Survey is conducted twice yearly by the Global Sources China Bureau, which has market analysts based in the key exporting regions of mainland China.

Of the 509 suppliers responding to this survey, 119 were interviewed during in-person factory visits while the remaining 390 were canvassed by phone. All companies interviewed for this survey are export-oriented and were required to answer specific questions designed to verify their manufacturing and export credentials.

Since the majority of manufacturers in the industries covered by this survey are based in the eastern coastal provinces of mainland China, that region is the survey’s geographic scope. In total, the survey comprised responses from 18 mainland provinces and regions, Hong Kong, Macau and Taiwan.

Most of the respondents are locally owned (79 percent) although a number of foreign-invested companies were included. The survey did not include multinationals with factories in China but focused on domestic manufacturers that export.

Geographic breakdown of respondents

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EXPORT PRICES

What is the outlook for your export prices in the next 12 months?

Increase76%

Stay the same��%

Decrease�%

Industry Increase Stay the same

Decrease No response

Massagers 51 14 2 1

Ceiling light fixtures 62 8

Automotive lights 44 19 6 1

Eyewear 52 8 1

Leather garments 67 9 1

Air conditioners 27 13 1

Pet products 50 22 1

Solar panels 33 13 3

Total �86 �06 �5 �

Percent 75.8% �0.8% �.9% 0.�%

The uptrend in product prices will continue throughout the year for eight key manufacturing industries in China despite the spate of adjustments that marked 2006. Previous increases were not enough to allow suppliers to recover losses incurred over the past few years as a consequence of efforts to absorb a significant portion of production expenses.

The continued rise in raw material and component costs is still the primary factor driving price increases.This is particularly true for product lines that, because of the nature of their industries, rely heavily on the use of certain material types or grades to keep quality high.

China suppliers of leather garments, for instance, use sheep and lambskin, and cowhide for midrange and high-end models. Rising costs, specifically of cowhide, are forcing makers to resort to alternative skins to keep production expenses down. Cowhide is valued for its appearance, elasticity and durability.

Housings and reflectors of ceiling light fixtures are made primarily of aluminum. The cost of the material has risen by at least 20 percent over the past year.

Moreover, brass costs have tripled since the beginning of 2006. This has triggered a corresponding surge in the cost of wire, ballasts and other electrical and electronic components made mainly of the material.

In addition to brass, eyewear suppliers in China use titanium, nickel silver and various types of ordinary and memory plastic, prices of which have jumped by as much as 20 percent.

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EXPORT PRICE INCREASE

By how much will your export prices increase?

Increase 10-15%9%

Increase 5-10%

�7%

Increase up to 5%�0%

Increase more than 15%�%

Industry Up to 5% 5-�0% �0-�5% More than �5%

Massagers 10 21 13 7

Ceiling light fixtures 18 35 7 2


Eyewear 24 23 3 2


Air conditioners 12 11 4

Pet products 24 23 1 2


Total �5� �8� �6 �5

Percent �9.6% �7.�% 9.�% �.9%

Known primarily for their price advantage, China suppliers are striving to keep increases at a minimum to remain competitive.

Projections, however, are not as optimistic as in our previous survey period when slightly higher ratio of companies were confident they would be able to control price rises to within 5 percent. In the last six months of 2006, more suppliers were forecasting jumps of between 5 and 10 percent.Nevertheless, the outlook remains generally favorable. Only 13 percent of respondents are planning to raise prices by more than 10 percent— predominantly makers of massagers and ceiling light fixtures..

The fact that price increases will be generally kept within 10 percent is a significant development in the various manufacturing industries featured in this survey. This is particularly evident when taken in light of the drastic fluctuations in the cost of key raw materials and components.

For instance, the cost of polysilicon, the main material for photovoltaic cells, has more than doubled due to a supply shortage. This has forced solar panel suppliers to sacrifice margins and reduce operating expenses to offset higher production costs. As a result, many companies in the industry are anticipating price increases of only up to 5 percent.

Most surveyed makers of ceiling light fixtures are expecting quotes to go up by as much as 10 percent. This is because they have had to cope with additional expenses stemming from the use of better-quality, environment-friendly materials and tighter implementation of QC/QA procedures, in line with efforts to comply with stringent environmental standards such as the RoHS.



CAPACITy

Do you plan to expand your production capacity in the next 12 months?

Increase more than 50%9%

Increase 20-50%��%

Increase up to 20%5�%

Industry More than 50%

�0-50% Up to �0%

No increase

No response


Ceiling light fixtures 5 16 38 10 1

Automotive lights 5 30 31 3 1

Eyewear 3 19 35 4


Air conditioners 1 15 18 6 1


Solar panels 11 10 24 4

Total �� 6� �6� �8 �

Percent 8.6% ��.8% 5�.5% 7.5% 0.6%

Anticipating continued strong demand, the majority of suppliers in our survey will be expanding production capability in coming months.

Another reason behind the expansion efforts is the generally high utilization of current capacity, which is running between 65 and 85 percent for the eight featured manufacturing industries.

More than half of the companies planning to boost capacity, however, are wary of investing heavily in this endeavor.

This is because they are cautious of overexpansion that could add to losses they will incur if, with raw material costs still fluctuating, sales do not take off as expected.

Many pet product, leather garment, eyewear and ceiling light fixture makers in China, for instance, will be boosting capacity only up to 20 percent. This is despite the fact that average utilization already exceeds 80 percent.

In the pet products segment, where capacity utilization is at 83 percent, many suppliers will be expanding only by upgrading their existing factories.

Compared with the other surveyed industries, suppliers in the massagers segment have more room in their current manufacturing capability to accommodate additional orders. Nevertheless, more than half are planning to raise capacity by 20 and 50 percent. More than one quarter indicated that expansion would exceed 50 percent.

No increase8%

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CAPACITy EXPANSION

How will you expand your production capacity?

Increase subcontracting

�0%

Merger/takeover�%

New/additional factory

��%

Upgrade existing facilities56%

Industry New factory

Upgrade Increase subcon

Merger/takeover

Massagers 34 26 2 3



Eyewear 13 40 3 1

Leather garments 14 34 20 2

Air conditioners 8 24 1 1



Total �� 6� �6 �5

Percent �0.6% 56.�% 9.8% �.�%

More than 85 percent of the surveyed suppliers that plan to boost capacity in the coming 12 months will concentrate upgrades on manufacturing facilities.

Many, however, are cautious of overexpansion. These companies are therefore directing investment toward improving their existing factories with the upgrades revolving mainly around the purchase of additional or more advanced production machinery.

This is the situation in the air conditioners segment, which, unlike other manufacturing industries in China, is dominated by large suppliers. Many of these recently absorbed their smaller counterparts and merged with component providers, a development that has resulted in increased production capability.

Nevertheless, some companies are investing in new machinery to ensure that equipment acquired as a result of the buyouts meets their existing quality standards. Moreover, they are upgrading various facilities such as those used for soldering to comply with the requirements of the RoHS directive.

Nearly 50 percent of solar panel suppliers will be constructing new factories. These facilities are critical as makers implement backward integration to gain better control over costs along the supply chain. New plants will be used for the manufacture of photovoltaic modules as well as solar cells and wafers, and application products such as luminaires.

Of the eight industries surveyed, subcontracting will play a major role in capacity expansion only in the leather garments segment, which has been affected by labor shortages in past years.



EXPORT SALES

What is the outlook for your export sales in the next 12 months?


Increase up to 5%��%

Increase 5-10%�9%

Increase more than 20%�5%

Industry More than �0%

�0-�0%

5- �0%

Up to 5%

Decrease No response



Automotive lights 28 19 18 4 1

Eyewear 10 18 15 18

Leather garments 3 19 12 43




Total ��9 ��0 ��5 ��

Percent �5.�% ��.6% �8.5% ��.�% 0.�% 0.�%

Suppliers in the eight surveyed industries have a generally positive outlook on export sales for 2007. Competitive prices and improving product quality are expected to attract more orders in coming months.

Some industries are anticipating higher export growth than others because of expanding markets. Seventy-five percent of massager suppliers in the survey expect overseas shipments to increase by at least 10 percent, with more than half of these expecting growth to exceed 20 percent alongside the rising popularity of the product line among young consumers.

Most automotive light makers are projecting a similar increase. Demand from the US and the EU is expected to strengthen as the repair and replacement segments in these two markets become more open to using non-OE parts.

Growth rate projections in the leather garments industry, in contrast, are more conservative with more than half of the surveyed respondents forecasting an increase of only up to 10 percent. The cautious optimism is due mainly to the rising popularity of fur, which has led to a decline in demand for leather garments in the past few years.

Makers of ceiling light fixtures are likewise careful of their export projections. Many small and midsize companies are expecting shipments to the EU to drop in coming months as they prepare for RoHS compliance.

The growth in overseas shipments of solar panels depends not so much on demand, but on the supply of the critical components. With the production of solar cells still falling short of requirements because of the polysilicon shortage, most panel makers are expecting increases of less than 10 percent in coming months.

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What will be your most important target market in the next 12 months?

EXPORT MARKETS

Asia�0%

Other�%

US�5%

EU�9%

Mideast/Africa7%

Europe (non-EU)6%

Industry US EU Europe (non-EU)

Asia Mideast/ Africa

Other No response

Massagers 12 44 4 6 1 1


Automotive lights 20 30 7 4 8 1

Eyewear 19 27 4 6 2 3

Leather garments 25 31 5 9 2 4 1

Air conditioners 2 14 2 3 14 5 1

Pet products 29 37 1 5 1


Total ��6 �50 �0 50 �6 ��

Percent ��.8% �9.�% 5.9% 9.8% 7.�% �.6% 0.8%

Stringent industry requirements in the EU continue to be of no hindrance to most suppliers in China. Our survey shows that a large number of makers still consider the region as the key overseas market for their products. This is because shipments to the EU generate higher margins than those sent elsewhere. In addition, many companies find that securing CE certification is less expensive than obtaining UL listing, which is needed to export to the US.

Even the implementation of the RoHS directive has not deterred suppliers. Although compliant models cost 5 to 20 percent more to make than standard products, many makers actually welcome the enforcement of RoHS. Most of these companies are midsize and large. They see the directive’s implementation as an opportunity to strengthen their presence in the EU as competitors unable to meet the requirements drop out.

The accession of additional members to the EU is another factor encouraging China suppliers to focus on the region. As more countries standardize their requirements and programs, makers will be able to offer products to a larger market at lower development costs.

Almost three quarters of solar panel suppliers expect demand to come mainly from the EU since member countries are required to establish programs that will increase the consumption of electricity from renewable energy sources.

For the automotive lights industry, the implementation of Block Exemption Regulation 1400/2002/EC is an added incentive to focus on the EU. This legislation has liberalized the aftermarket in the region, providing suppliers with the chance to expand their customer base in this segment.

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CHALLENGES

What is the most difficult challenge facing your company?

Labor shortage��%

Raw material costs��%

Design copying/piracy�5%

Price competition�5%

Stricter overseas standards

5%

Industry Labor shortage

Raw materials

Design copying

Price comp’n

O’seas stds

No response

Massagers 7 21 5 34 1



Eyewear 8 16 13 23 1

Leather garments 26 14 23 12 2



Solar panels 1 27 7 10 4

Total 57 �70 75 �78 �7 �

Percent ��.�% ��.�% ��.7% �5.0% 5.�% 0.�%

Depending on the nature of the industry and the developments currently affecting it, China suppliers have different perceptions of what the main threat to growth in coming months will be.

Leather garment suppliers, for example, consider the shortage in workers as the most important challenge to overcome since manufacturing is inherently labor-intensive. The industry is posting high employee turnover rates because of the health hazards posed by working with leather, particularly low-grade types that may emit toxic fumes.

Makers of leather garments also find it hard to retain workers because many leave during the off-season and do not return during peak months. Design copying is another major obstacle because product innovation is a critical competitive advantage in the sector.

For the other seven industries we surveyed over the past six months, price competition and spiraling raw material costs are the main impediments to growth. In some cases, the twin pressures exerted by these issues have forced companies to close down, shift to other product lines or even sell out to larger makers.

Certain manufacturing sectors regard price competition as the greater problem as this prevents them from passing on additional costs to buyers, resulting in slimmer margins. Many suppliers of automotive lights to the aftermarket have cut prices to remain competitive, reducing margins by as much as 50 percent.

For makers of air conditioners and solar panels, the focus will be on raw material costs. Many companies are already struggling with the cost of key inputs such as brass and polysilicon, which have increased sharply from 2005 levels.

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EFFICIENCy IMPROVEMENT

Upgrade management systems

�0%

Automation��%

Reduce waste�7%

Decrease defects9%

Vertical integration

��%

What is the most important step you are taking to improve your efficiency?

Industry Mgt systems

Automation Reduce waste

Decr defects

Vertical int’g’n

No response




Eyewear 24 18 10 2 7


Air conditioners 23 5 4 1 7 1



Total �98 �08 88 �5 68 �

Percent �8.9% ��.�% �7.�% 8.8% ��.�% 0.�%

Many surveyed suppliers will be streamlining operations and reducing overall operating costs by investing in database management systems that facilitate various business activities such as procurement, sales, marketing and delivery. This is particularly critical for air conditioner, ceiling light fixture and massager makers planning to export to the EU. These manufacturers have to monitor and document internal adherence to RoHS requirements, as well as that of their various suppliers.

Automation is another popular option among China suppliers, especially in industries where precision during certain manufacturing processes is crucial. More than 30 percent of the solar panel makers in this survey will acquire automatic cell sorting and testing equipment to ensure consistency in the solar cells they use. Several automotive light suppliers, meanwhile, will be installing automated coating lines.

In the leather garments industry, a number of companies will be investing in automatic cutting machines this year to speed up the production process and reduce raw material wastage. These makers are also looking to lessen their dependence on manual labor in view of the high turnover rate and the shortage of trained workers during peak months.

For the pet products sector, improvements will focus on maximizing the use of raw materials, especially wood and rawhide. This is in light of stricter environmental regulations in China that have raised costs by as much as 40 percent.



CAPABILITy IMPROVEMENT

Widen product range��%

Shorten design/development time

��%

Shorten delivery time

��%

Obtain certification/approval

��%Staff training

�0%

What is the most important step you are taking to improve your capability?

Industry Prod. range

Design/dev’t

Delivery times

Certification Staff training

No response




Eyewear 8 22 4 7 20


Air conditioners 10 11 1 2 16 1



Total �� 08 7� 6� �50 �

Percent ��.�% ��.�% ��.9% ��.6% �9.5% 0.�%

Surveyed suppliers are building on time-driven competencies as they implement differentiation strategies that are not based on price alone. Although low prices are still their primary selling advantage, more than one-third of respondents will be working toward developing new products faster or getting them to the market quicker.

In this regard, leather garment makers are concentrating on cutting delivery time to improve export capability.

For eyewear suppliers, expediting mold development is critical in reducing overall production time. Samples that require new molds take about 30 days to finish compared with the 10-day lead time of products that use existing molds. This is the reason why some companies are purchasing mold-making equipment that will allow them to perform the task in-house.

Several industries will also be making significant investments in their workers over the next 12 months.

Suppliers of air conditioners and pet products will be educating staff about following the requirements of international product, manufacturing and quality standards.

Workers in air conditioner factories will be taught RoHS compliance, including proper materials storage and waste reduction.

Aside from higher wages, leather garment makers are using training to help improve staff retention.

Suppliers continue to expand their product lines to maximize their current technological and manufacturing capabilities. Solar panel makers, for instance, have expanded into related application products such as outdoor lighting fixtures.





Increase 10 -15%�5%

AIR CONDITIONERS

Increase66%


Decrease�%

No increase�5%

More than50%�%

Increase 20-50%�8%


Price competition�%

Raw material costs6�%


Labor shortage

�8%


�8%

Shorten delivery time�%


5%

Staff training

�9%

Widen product range�5%

Price Increase

Prices

Challenges

Capacity

Product trends

Capability Improvement

Efficiency Improvement


57%Automation��%

Reduce waste�0%

Decrease defects�%

Vertical integration�7%

China Sourcing Report

Air ConditionersGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Industry trend analysis

More stylish housings5%

Environment-friendly models

�5%

Air-purifying features

�0%

Additional automated

features5% Energy-

effficient models

�5%

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Increase 5-10%

�5%

Increase 10-15%7%

Labor shortage59%

Raw material costs�0%

Design copying/piracy

�%Price

competition6%


��%

Shorten design/

development time��%


9%

Obtain certification/approval9%

Staff training��%


No increase�%




�0%

Automation�9%

Reduce waste9%

Decrease defects6%


�6%

Increase6�%

Stay the same�8%

Decrease9%

Price Increase

Prices

Challenges

Capacity

Product trends



AUTOMOTIVE LIGHTS


Automotive lightsGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available covering a wide range of export industries in China.www.chinasourcingreports.com

Increase up

t0 5%��%

More than 15%

5%

More than 50%7%

LED or HID lamp technology

��%

Extended service life

��%

Brighter illumination�%

Meet US, European standards

50%



CEILING LIGHT FIXTURES

Increase89%



Increase 5-10%

57%


More than 15%�%

No increase��%

More than 50%7%


Increase up to 20%56%



Design copying/piracy9%

Labor shortage�6%


��%


�9%


��%

Obtain certification/

approval��%



Upgrade management

systems��%

Automation�6%

Reduce waste��%

Decrease defects�0%


�7%


Ceiling light fixturesGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Price Increase

Prices

Challenges

Capacity

Product trends



Improved safety features��%

More RoHS-compliant

models�6%

Assymetrical designs�%

Compact housings/structure

��%

Sensor activation6%



EyEWEAR

Increase85%


Increase 10-15%6%

Increase 5-10%

��%


More than 15%�%

No increase7%

Increase + 50%5%



Price competition��%


Design copying/

piracy��%

Labor shortage

�8%

Stricter overseas standards�%


�6%

Shorten delivery time7%

Obtain certification/

approval��%




�0%

Automation�0%

Reduce waste�6%

Decrease defects�%

Vertical integration��%


EyewearGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Price Increase

Prices

Challenges

Capacity

Product Trends



Decrease�%

Lightweight models

�8%

Trimmings��%

Oversized frames

��%

Turtle shell frames��%

Multiple lens coatings7%



LEATHER GARMENTS

Increase87%

Increase 10-15%6%

Increase 5-10%

5�%


No increase�7%

Increase 20-50%6�%


Price competition

��%Raw material

costs�8%


Labor shortage

�6%


�%


��%

Shorten delivery time�7%

Obtain certification/approval5%


Widen product range

��%

Decrease�%

Upgrade management

systems�0%

Automation��%

Reduce waste�6%

Decrease defects

�9%

Vertical integration�%


Leather garmentsGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Price Increase

Prices

Challenges

Capacity

Product Trends




Patchwork design�5%

Fur trimming��%

Use of new types of leather

(animal skin or finish)

�8%

One or two colors in designs

�0%

Handsewn/handembroidered designs5%



MASSAGERS

Increase76%


Increase 10-15%

�5%

Increase 5-10%

��%


More than15%��%

No increase�%

More than 50%�6%

Increase 20-50%5�%


Price competition

�0%


Design copying/piracy7%

Labor shortage

5�%

Shorten design/

development time�6%


�0%

Obtain certification/approval�%

Staff training

�5%


Upgrade management

systems�5%

Automation��%

Reduce waste�0%

Decrease defects7%


�6%

Decrease�%


MassagersGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Price Increase

Prices

Challenges

Capacity

Product Trends




�%

Develop models with multiple massage programs

��%

Enhance user

comfort��%

Add entertainment

features�6%

Enhance massage techniques

��%

Improve aesthetic appeal7%



PET PRODUCTS

Increase69%

Stay the same�0%

Increase 10-15%�%

Increase 5-10%

�6%


More than 15%�%

Capacity Expansion

No increase�%



Price competition

�0%


Design copying/

piracy�8%

Labor shortage

�5%


�%


��%

Shorten delivery time��% Obtain

certification/approval

�8%

Staff training�6%


Upgrade management

systems��%

Automation�0%

Reduce waste�0%

Decrease defects7%


��%

Decrease�%


Pet productsGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top-selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Price Increase

Prices

Challenges

Capacity

Product Trends



More than 50%�%

Human-style products

��%

Novelty features

5�%

Licensed designs7%

Improved safety features

�9%



SOLAR PANELS

Increase67%

Stay the same�7%

Increase 10-15%�%

Increase 5-10%

��%


No increase8% More than 50%

��%

Increase 20-50%�0%Increase up to 20%

50%


Raw material

costs56%

Design copying/

piracy��%

Labor shortage�0%


8%


��%


�6%


�9%

Staff training8%


Upgrade management systems�9%

Automation��%

Reduce waste��%

Decrease defects��%

Vertical integration�%

Decrease6%


Solar panelsGet comprehensive industry analysis and detailed profiles of all the suppliers featured in this survey, including a gallery of top selling products. More than 145 reports are available, covering a wide range of export industries in China.www.chinasourcingreports.com

Price Increase

Prices

Challenges

Capacity

Product Trends



Thinner wafers/cells

�9%

Higher cell efficiency

5�%

UL/TUV/CE approval�%Shift to

amorphous silicon module

�6%

Which suppliers best meet your needs?Where are prices headed? What trendsare on the horizon?

China Sourcing Reports give you theanswers. In every industry-specific report,you get –

• Detailed profiles of qualitymanufacturers, based on in-personfactory tours

• Product and pricing forecasts, plusspecifications for best selling exportproducts

• Coverage of leading and emergingsupply centers, plus insights intocapacity, output and R&D

Go to Go to Go to Go to Go to www.chinasourcingreports.comwww.chinasourcingreports.comwww.chinasourcingreports.comwww.chinasourcingreports.comwww.chinasourcingreports.comto learn more about the report in yourto learn more about the report in yourto learn more about the report in yourto learn more about the report in yourto learn more about the report in yourindustry.industry.industry.industry.industry.

When you want reliable information on qualifiedChina suppliers, you’ll find it at Global Sources.We verify all claims and visit all suppliers atleast 3 times before ever presenting theirproducts to you.

China Sourcing ReportsFind qualified suppliers

China Supplier Survey - Global Sources

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