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    Strong Growth Of Chinese Fashion Accessories

    2010/6/5 9:12:00 35

    Fashion

    As the global consumer market recovers from the financial crisis, Chinese fashion accessories suppliers expect strong sales growth in 2010.


    According to the "China procurement information report - Fashion Accessories", most of the surveyed suppliers expect that their overseas sales will increase by more than 10% in the next few months, and about 40% of the surveyed enterprises expect export growth to exceed 20%.

    The products covered by the report include belts, buckles, sunglasses, optical frames, presbyopic glasses, gloves, hats, hair accessories, socks, scarves and neckties.


    "Chinese suppliers clearly expressed optimism about sales expectations for 2010," said Ye Jing, publisher of China sourcing information report fashion accessories.

    In addition to the overall export situation from recession to full recovery, manufacturers of hats, gloves, scarves and socks expect buyers to increase their demand for these products due to the extreme weather this winter.

    While suppliers are optimistic about the steady improvement of exports, they are also faced with a bigger challenge, which is how to maintain product prices at a lower level.

    Ye Jing said: "because of the rising cost of raw materials and labor, the profit margins of suppliers have been affected.

    On the other hand, cotton prices have increased by 33% compared with a year ago, and the cost of polyester and most metal materials has also risen sharply, and some of the prices of raw materials have increased by 50%.


    "Most suppliers have no choice but to pass the extra cost on to buyers to maintain reasonable margins.

    About 2/3 of the respondents said they would plan to raise their product prices because of rising operating costs, but most suppliers said they would increase their growth by less than 10%.

    He added.


    In the survey, the challenges faced by the suppliers, in addition to 34% of respondents said that the increase in raw material costs and 28% of respondents believe that the increase in labor costs, but also 14% of respondents believe that price competition is increasingly fierce, 10% of respondents believe that product design is plagiarized, 7% of respondents said that the overseas market is more stringent product standards, 7% of respondents believe that the appreciation of the renminbi will affect profitability.

    To enhance their competitiveness, 49% of the surveyed manufacturers are planning to increase their operational efficiency, 18% of respondents plan to expand their products, and 10% of respondents plan to increase staff training to reduce product defect rate.


     

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