Chinapromoter Blog

China exported 956.9 million watches worth US$977.4 million in 2004. However, export growth rates in the industry have been decreasing dramatically. Export sales last year increased by only 2.5 percent, significantly lower than the 22.4 percent growth rate registered in 2003. Even volume growth has slowed. Where total outbound shipments increased 10 percent in 2003, they rose only 5.4 percent in 2004.

China's sunglasses export industry continues to be focused on the low-end market, although more midrange and even high-end models are being produced as a trend to improve design capability gradually takes hold. China suppliers offer fashion, sports and children's sunglasses, with exports for 2004 estimated to reach US$370 million.

China suppliers exported 3.6 billion pairs of slippers worth US$5.14 billion in 2004. Export sales grew a robust 22 percent and are expected to grow further in coming months as demand from the key export markets continues to rise steadily.

The United States, Japan, United Arab Emirates and Russia are the top export destinations for China-made slippers. Together, these countries imported US$2.5 billion worth of slippers in 2004, accounting for nearly 50 percent of China's total exports of the product.

China's luggage export industry has been experiencing steady growth over the past couple of years. After a 15 percent increase in exports in 2003, the country shipped out close to US$4 billion worth of luggage last year, up 18.5 percent from the prior year.

China continues to lead the global leather bag and wallet industry. After a 32 percent increase in export value in 2004, the country shipped out US$2.3 billion worth of leather bags and wallets in 2005, up 34 percent from the previous year.

While export sales have risen since we last reviewed the industry in June 2004, it is important to note that growth rate in terms of volume has declined, from 30 percent in 2004 to 20 percent in 2005.

China's US$1 billion hat and cap industry is gearing up for increased demand as more overseas buyers shift their sourcing to the country's nearly 3,000 export suppliers. The lifting of US quotas on cotton and polyester hats and caps is also a factor behind steadily growing demand.

Eyewear exports from China are increasing at a steady pace, even though the industry is consolidating, and suppliers are dealing with numerous challenges including rising raw material costs and intense competition.

In the first six months of 2006, eyewear exports from the country grew 15 percent to 827 million pairs and 35 percent to US$612 million, compared with shipments made in the previous corresponding period.

Costume Jewelry

China's costume jewelry export industry has been experiencing steady growth over the past couple of years. The country shipped out close to US$650 million worth of costume jewelry in the 10 months to October 2005, giving a year-on-year growth of more than 50 percent. Export sales were even 20 percent higher than total shipments in 2004.

China' s cosmetic exports are on the rise as demand from major and emerging markets continues to grow and makers enhance the quality of their products. Overseas shipments in the line are expected to increase 20 percent to about US$630 million in 2006. At US$150 million, exports in the first four months of the year have already risen 18 percent compared with the previous corresponding period in 2005.

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The computer bags export industry in China grew 16 percent in 2003 and 18 percent in 2004. Suppliers are optimistic of at least 20 percent growth in 2005, on the back of steadily rising demand for computer bags.

China's more than 500 computer bag export manufacturers are slowly moving to more upscale manufacture. Suppliers in this OEM-driven industry have been producing low-end and midrange computer bags priced as low as US$1 each. However, increasing production costs and intense competition in the OEM market have led to shrinking profit margins, pushing makers to move to the manufacture of computer bags with higher returns.

Accounting for 60 percent of global output in the line, China is the world's largest producer of casual footwear. In 2003, the country exported 6 billion pairs, worth US$13 billion. Its main export markets are North America, the EU and Asia. The United States alone absorbs US$5 billion worth of China-made footwear each year.

The increasing cost of production is one of the biggest challenges facing China's casual backpack and schoolbag industry today. Soaring material prices and rising workers' salaries pushed manufacturing costs up by as much as 20 percent last year.