Gifts Today magazine

China exporter projections remain positive amid challenges

New survey by Global Sources finds majority of China suppliers foresee an increase in export revenue

More than 65 percent of surveyed suppliers said their export earnings in the first six months of 2014 will be higher year-on-year. Optimism, however, is marginally lower than the prior poll, which focused on the second half of 2013. However home and gift products manufacturers, meanwhile, are somber. More than 20 percent of suppliers in this subgroup foresee a decrease in revenue.

The survey found that most respondents thought growth in the next half-year will be moderate as they continue to contend with climbing costs that, in turn, are eating into margins. The last issue is driving suppliers to increase prices despite pressure from the buy-side not to do so.

Rising prices are not only a progression from high costs. They are also a result of China's shift from cheap to upscale production that would ensure competitiveness in the long term. Further, companies are moving away from contract manufacturing and toward production based on in-house designs.

"Moving from being a source of inexpensive goods to a hub for top-quality products that offer good value-for-money is part of the evolution of China's export industry," said Craig Pepples, Global Sources' President of Corporate Affairs. "Upscale, and OBM and ODM production will secure China's place as an export powerhouse even as new low-cost manufacturing hubs emerge."


The complete survey is available for free at globalsources.com.


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