Industry Overview Sample Pages from the Computer Bag Report- Sourcing from China Report
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Increasing production costs and intense competition in the low-end and OEM markets have considerably cut profit margins of computer bag suppliers in China. Many of them are therefore moving to more upscale manufacture where profit margins are higher, and some are also experimenting with alternate materials that can provide the same quality and durability at a lower cost.

Computer bag suppliers in China face rising production costs that are widespread in nearly all manufacturing industries in China. Raw material costs have increased 10 percent in 2003 and as much as 25 percent in the first 10 months of 2004. Companies have also had to increase migrant workers' wages up to 15 percent to keep workers from moving to the inland provinces, where economies are improving. In all, total operational costs have increased an average 20 percent in the past year, but suppliers have been able to pass only 10 percent of these additional costs to buyers.

The majority of computer bag exports from China are for OEM orders. While this has helped suppliers enhance their design and manufacturing capabilities, and boost quality, it also translates to minimal profits.

In addition, profit margins have also been affected by intense competition in the low-end and OEM segments, which most of China computer bag suppliers specialize in.

Makers are therefore taking steps to increase their profitability, mainly by moving away from the low-end segment. Some are developing inhouse brands and aggressively marketing their products under these labels. Although only a few China suppliers have taken this step, those that are exporting computer bags under in-house brand names have been able to raise prices. Branded computer bags from China usually start at about US$3 each for basic nylon or polyester shell models. The same type of models can be sold for as low as US$1 each on OEM orders.

In this report, Jiahua Luggage, Magicase, Top and Best, and Yuyao Freelife are actively promoting their in-house brands in international markets. OEM and ODM work comprise only 10 to 30 percent of export business at these companies.

In addition to building brands, makers are moving to the manufacture of products that can give them higher returns. One is the use of synthetic and genuine leather for the shell, instead of the standard nylon or polyester. Another is to increase the production of casual and fashion computer bags and backpack models. These emerging product lines have strong growth potential but are made by relatively fewer companies.

Suppliers are also researching the use of alternative fabrics that cost less but perform as well as nylon or polyester. The cost of synthetic and chemical fibers has surged by as much as 40 percent over the past year, and inflation is expected to continue well into 2005.

Bamboo fabric is one such alternative. The fabric is durable, has a soft hand and smooth finish, and can be dyed in various patterns and colors. It also costs less than nylon or polyester.

Industry composition
China is home to more than 500 computer bag exporters, 95 percent of which are privately owned enterprises and the rest state-owned. Of the private enterprises, 74 percent are wholly China-owned and the remainder are foreign-owned or invested. Some companies, such as Anhua Zhouli, have acquired licenses to use patented versions of bamboo fabrics.

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  Industry snapshot      
  No. of exporters   500  
  No. of trading companies   50  
  Export ratio   80%  
  Capacity utilization   79%  
  OEM share of business   80%  

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Computer Bags

Report on Computer Bags
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China's computer bag suppliers
faced with higher production costs and intense competition
are differentiating themselves by adding value to their products.

Now you can take advantage of this trend, with 86 profiles of China's major manufacturers
profiles that are only available in the pages of this report.

You'll also get a comprehensive overview of the computer bag industry in China, analyzing producer capabilities, R&D plans, output projections and more for the coming year.

Focusing on fabric and soft-plastic computer bags, this report provides you with invaluable information that will improve your sourcing efforts in the next 12 months.

Suppliers: 86
Jan 05
All information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.    Apparel Search is working in association with Global Sources to help promote this sourcing report to the international fashion community.  If you have questions about the report or status of your orders, please e-mail Xue Mei for further assistance.
The Computer Bags China Sourcing report has been developed and maintained by Global Sources.  Apparel Search is working in association with Global Sources to help promote this sourcing report to the international fashion community.

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