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Magazines Archives - 2008 May
Chinese suppliers to hold prices
steady
Story
3
MOST suppliers in
China are planning to boost production capacity and hold prices
steady. The China Supplier Survey conducted by B2B media and
market research company Global Sources has revealed that 84% of
electronics suppliers in Greater China plan to hike production,
while around 50% are planning to keep price rises to 5% or
lower, despite costlier raw materials.
“Greater China suppliers are facing a number of challenges,
including higher manufacturing costs and an appreciating yuan,”
said Mark A Saunderson, publisher of the report. “Meanwhile,
price competition hasn’t let up. However, most suppliers
expressed their willingness to hold export quotes to maintain
market share.”
This is because Chinese suppliers are still optimistic about
sales. Among those surveyed, 39% said they were planning to
expand capacity by at least 20%. This is possible, Saunderson
said,
given the electronics suppliers’ adaptability to market
situations, and skill at obtaining product approvals and
entering new markets.
Global Sources interviewed 322 manufacturers across 10
electronics bases in Greater China. The majority were located in
the south-eastern part of the country, with more than half in
Guangdong. Fujian and Zhejiang were the other key production
hubs covered. The survey covered access control, battery
chargers, Bluetooth headsets, DC motors, digital cameras, in-car
TVs,
IP cameras, PC cameras, media players and USB flash drives.
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