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
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.
are some of the key trends we see in China's
computer bags export industry:
|Suppliers will increase
product prices in 2005 as a result of higher
production costs. Many companies had already
raised prices in 2004, but further inflation
is projected because raw material costs
continue to increase.
|More suppliers are breaking
away from low-end or OEM-dominated
production. Companies are producing more
computer bags with synthetic or genuine
leather shells, as well as models in
youthful and fashionable styles.
designs in black or dark gray will still be
mainstream, but the casual backpack and
messenger-bag types in vibrant colors will
gain greater market share.
|In anticipation of
increased orders, new factories are being
built to expand capacities. Some suppliers
are moving to bigger locations to make room
for the additional equipment they will be
purchasing to increase output.
This report focuses on softside computer bags
made of fabric, soft plastic and leather. It does
not cover hardside models made of hard plastic and
aluminum. Most China makers of computer bags produce
softside models, and those that make hardside
versions usually offer these as a sideline.
Classic computer bags
account for 47 percent of exports by companies in
this report, while casual and fashion models and
backpacks make up 24 and 22 percent, respectively.
Because sleeves are sold mainly as attachments to
backpacks and other bigger bags, their sales make up
only a small percentage of exports.
The majority of these
suppliers are wholly China-owned private
enterprises, along with a few foreign-owned. More
than two-thirds of these suppliers have direct
export capability, but most still ship their
products through trading companies. Suppliers are
based mainly in the coastal provinces of Guangdong,
Fujian, Jiangsu and Zhejiang.
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