Expected Sales Growth Of Chinese Fashion Accessories Suppliers

As the global consumer market moves from financial crisis China's fashion accessories suppliers expect strong sales growth in 2010. According to the "China Procurement Information Report - Fashion Accessories", most of the interviewed suppliers predict that their overseas sales of products will increase by more than 10% in the coming months, and about 40% of the interviewed enterprises predict that the export growth will exceed 20%. The products covered by the report include belts, buckles, sunglasses, optical frames, reading glasses, gloves, hats, hair accessories, socks, scarves and ties.

Ye Jing, publisher of "China Procurement Information Report - Fashion Accessories", said: "Chinese suppliers clearly expressed their optimistic attitude towards the sales forecast in 2010. In addition to the overall export situation turning from recession to full recovery, due to the extreme weather this winter, manufacturers of hats, gloves, scarves and socks expect that buyers' demand for these products will increase. ”At the supplier's exit While expressing optimism for steady improvement, they are also facing a major challenge, namely, how to maintain product prices at a lower level. Ye Jing said, "Due to the rising cost of raw materials and labor, the profit margin of suppliers is affected to some extent. On the other hand, cotton The price has increased by 33% compared with a year ago, and the cost of polyester and most metal materials has also increased significantly, among which the price of some raw materials has increased by more than 50%. "

"Most suppliers have no choice but to pass on the extra costs to buyers to maintain a reasonable profit margin. About two-thirds of the respondents said that they would plan to increase the price of their products due to the rising operating costs, but most suppliers said they would control the increase within 10%." Ye Jing added.

In the survey, the challenges faced by suppliers include: in addition to 34% of respondents saying that the cost of raw materials has increased and 28% of respondents believe that the cost of labor has increased, 14% of respondents believe that the price competition is becoming increasingly fierce, 10% of respondents believe that the product design has been copied, and 7% of respondents say that the overseas market has more stringent product standards, 7% of respondents believe that the appreciation of the RMB will affect profitability. In order to improve their competitiveness, 49% of the surveyed manufacturers are planning to improve their operational efficiency, 18% of the respondents plan to expand their product range, and 10% of the respondents plan to increase staff training to reduce the product defect rate.