Retail in Asia

In Markets

Report: China baby travel and care products industry, October 2009

China’s baby travel and care products industry is preparing to get back on its feet, thanks to improving trade and business conditions. Indeed, many suppliers are starting to ramp up expenditure, with the emphasis on standards compliance and aggressive marketing.

Companies have generally been cautious since the onset of the economic crisis, relying primarily on low prices to stimulate demand and keep risks at bay. Most of them, however, now feel the need to take a more active stance in recovering from the slowdown in exports this past 12 months.

According to customs statistics, Chinese shipments of pushchairs and parts between January and July 2009 fell 30 percent year on year to 126 million kilograms. Revenue was down 22 percent at USD464 million.

The contraction is attributed primarily to fewer orders from the US, the line’s biggest importer. The country procured 40 million kilograms worth USD131 million during the aforementioned period, a decline of 26 and 23 percent in terms of volume and value, respectively.

China’s stroller suppliers are nonetheless hopeful of an upturn, a sentiment echoed in other product lines.

Nearly 90 percent of companies surveyed for this report expect export sales to rebound. Most estimates are even pointing to double-digit increases within the next 12 months.

The primary factor fostering optimism is the rise in business and consumer confidence, which albeit gradual, is anticipated to continue with the global economic recovery beginning to take shape.

Solid government support is also helping alleviate financial woes. Banks and other lending institutions have loosened credit policies, allowing SMEs to acquire funds at lower interest rates and more manageable payment terms.

In addition, certain sectors are enjoying wider margins via rebate adjustments. Tariff incentives on stroller exports, for instance, were lifted from 13 to 15 percent this June.

To view selected pages of the report for free, or to purchase a full copy of the report, visit Global Sources: China Sourcing Reports.