| The
increasing cost of production is one of the biggest
challenges facing China's casual backpack and
schoolbag industry today. Soaring material prices
and rising workers' salaries pushed manufacturing
costs up by as much as 20 percent last year.
However, because of intense competition,
especially in the low-end segment, suppliers have
been able to pass only 10 percent of these
additional costs to buyers. This has resulted in
shrinking profit margins, particularly for companies
that focus on low-priced knapsacks. Makers are now
looking at ways to deal with the higher production
costs and increase their profitability.
The following
are some of the key trends we see in China's
casual backpacks and schoolbags industry:
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Increasing production costs
will continue to be a concern for backpack
manufacturers in China. While about half of
the suppliers are keen on keeping export
prices stable in the next 12 months, the
other half have definite plans to raise
prices. |
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Some makers will increase
the production of high-value products such
as fashion and specialty backpacks, which
will give them higher profit margins. |
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Multicolor casual backpacks
and schoolbags in brighter shades are
becoming popular. Many of the new products
come with multiple compartments for mobile
phones and CD or MP3 players. Some even have
earphone ports. |
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Developing new designs and
researching alternate fabrics that can
either lower the cost of a product or
increase functionality will be the R&D focus
for most makers. |
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OEM production will
continue to drive exports for the next few
years. |
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The United States and the
European Union will remain the country's
major destinations for casual backpacks and
schoolbags, with the Middle East and Asia
growing in importance. |
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Suppliers in China export four types of backpacks
knapsacks, school and children's backpacks,
fashion backpacks and specialty packs. These
products are the scope of this report.
Almost all backpack manufacturers produce
knapsacks, and some specialize in the line. More
than 70 percent of suppliers featured in this report
produce all four kinds of casual backpacks for
export and more than 60 percent have knapsacks as
their main product line.
The Products & Prices section in this report
discusses the main features of each backpack type
and their price ranges. It also explains the
differences between low-end, midrange and high-end
products in each product category.
Product development and design focus are
discussed in the R&D/design section, while the
Materials & Components module details the main
fabrics used by China makers.
The Manufacturing section lists the key steps in
backpack production and how these differ in
companies of different size.
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