Sports ball exports from China are rising steadily as more overseas buyers are sourcing from the country and more suppliers continue to enhance the quality of their products while keeping prices relatively low.
If current growth rates are sustained, overseas shipments in the line could exceed US$500 million by the end of 2006. In the first quarter of 2006, China suppliers exported 319 million sports balls worth almost US$145 million, an increase of 25 percent in volume and 37 percent in value terms.
In 2005, exports from the country amounted to 1.1 billion sports balls worth US$465 million. These figures translate to a 20 percent increase in value and 10 percent volume growth.
The following are some of the key trends in China's sports ball industry:
• The majority of suppliers will be increasing capacity to meet growing overseas demand. Most makers are upgrading production facilities, while smaller companies are looking for more factories to subcontract manufacturing.
• Rising production costs will continue to be an issue of concern for sports ball makers in China. As a result, export prices, particularly of inflatable models, are expected to increase marginally in the next 12 months to reflect adjustments in the cost of rubber and synthetic leather.
• Even though many large companies are shifting toward high end competition-use products, the majority of sports balls exported from China will continue to be entry-level promotional and recreational models.
• The output of sports balls made using new materials and construction techniques is expected to increase substantially in the next 12 months. More companies are now offering inflatable models with butyl bladders that provide better air retention than regular rubber versions.
China suppliers offer a range of sports balls. For the purpose of this report, these have been divided into three categories: inflatable, solid-core and tennis balls.
While most suppliers specialize in one line, some offer a range of products across all categories. However, many companies that offer all major types of sports balls typically concentrate on the production of one line and subcontract the others.
About 85 percent of the suppliers in this report focus on the production of one line, usually inflatable models.
The Products & Prices section in this report discusses the main features of each major sports ball type and their price ranges according to low end, midrange and high end.
The latest trends in design and construction are discussed in the R&D/Design section.
Industry Overview
Steadily increasing overseas demand is pushing China's sports ball suppliers to boost production capacity. But amid healthy export growth, the industry is reeling under the pressures of the country's labor shortage, increasing production costs and intense competition.
China exported 1.1 billion sports balls worth more than US$400 million in 2005, up 20 percent from the previous year. At almost 319 million pieces, exports in the first quarter of 2006 were already 25 percent higher than shipments made in the same period last year.
Higher overseas demand, particularly from the US and the EU, is the main reason for this export growth. Many buyers who used to source inflatable sports balls in India, Pakistan and Thailand are now importing from China because suppliers there can offer more value for-money products.
Further, concerns such as child labor has compelled some well established companies such as Baden Sports Inc. to shift their sourcing needs to China. However, despite the fact that there have been no reported cases of child labor in the country, many suppliers do not have any procedures to monitor subcontracted production. Manufacturers, particularly those that are located in Jiangsu, subcontract sewing to village stitchers in the northern part of the province.
China suppliers can also offer sports balls at prices lower than their competitors due to lower manufacturing costs. Many of these makers are now taking steps to improve product quality, further boosting their competitive advantage over manufacturers in other countries.
In addition, many companies in China are taking advantage of increasing domestic demand, due mainly to the forthcoming 2008 Beijing Olympics.
Because of growing demand, a number of makers in the country are constructing additional factories or expanding existing facilities to boost capacity. Most of the new facilities will begin operations by the end of 2006, while some will open early next year.
Supplier Profile
A-Tex industries Co. Ltd
Established in 1999, Taiwan-invested A-Tex specializes in golf balls and accessories such as drivers, tees, putters, shafts and handle covers. It is one of the few manufacturers in mainland China that make professional, flashing and floating golf balls. Models are approved by the US Golf Association (USGA) and the Royal and Ancient Golf Club of St. Andrews (R&A).
Annual sales amounted to US$2.5 million in 2005, with golf balls making up 20 percent. The company projects export sales to increase by more than 20 percent over the next 12 months.
Fifty percent of golf balls output is exported, with 98 percent under contract manufacturing. The UK's Powerbilt and Italy's Fila are among the company's major OEM clients.
Products
A-Tex offers low-end premiums, midrange training models and highend USGA- and R&A-approved golf balls for professional use.
More than 50 percent of golf balls are midrange, priced between US$0.80 and US$1. Golf balls in two-, three- and multilayer designs are available.
Cores are made of BR or polybutadiene imported from Taiwan. Covers are in surlyn, a cut-resistant synthetic material that improves the golf ball's length, has less spin, a longer life span and is cost-effective.
A-Tex golf balls have 440 dimples, but models with more or less this number are also available. The number and sizes of dimples affect a golf ball's aerodynamics. Large dimples reduce air drag and enhance lift, while small dimples prevent excessive lift. The company also makes LED and floating golf balls. The newly released flashing LED model lights up for five minutes when hit.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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