| China suppliers
exported 3.6 billion pairs of slippers worth US$5.14 billion
in 2004. Export sales grew a robust 22 percent and are expected
to grow further in coming months as demand from the key
export markets continues to rise steadily.
The United States, Japan, United Arab Emirates and Russia
are the top export destinations for China-made slippers.
Together, these countries imported US$2.5 billion worth
of slippers in 2004, accounting for nearly 50 percent of
China's total exports of the product.
Regionally, North America is the largest market, absorbing
33 percent of total exports, followed by the European Union
at 17 percent and Asia with 16 percent.
Slipper makers in China are beset with a number of challenges,
led by the higher cost of key components and materials.
Suppliers in the coastal provinces also continue to face
electricity and labor shortages, further pushing up overhead
costs.
But even with higher production and operating costs,
many companies did not raise prices in 2004, opting to absorb
the additional expenses to remain competitive.
| The following are some
of the key trends we see in China's slippers export
industry: |
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A large number of slipper suppliers
will raise prices in coming months in response to
higher raw material costs, and the labor and power
shortage. |
|
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Competition in the low-end is pushing
many companies to shift their production focus to
the midrange and high-end. This will make them more
competitive and at the same time increase their
profit margins. |
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Many of those companies that will
not raise prices and will continue producing low-end
slippers are likely to use lower-quality material
to cut costs. |
|
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Some companies will also be producing
more leather slippers in response to higher demand
from the EU. But even with growing demand from the
EU, the US will remain the country's top export
market for slippers. |
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Many suppliers are increasing their
R&D focus on developing new designs. However,
making slippers more comfortable is the main focus
at most product development teams in China. |
|
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The eastern province of Jiangxi
is emerging as a major hub for slippers, especially
for leather models, which are priced at least 20
percent lower than those made in Zhejiang. |
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China's 875 export makers offer rubber, plastic, genuine/synthetic
leather, fabric and natural-material slippers. Almost all
slipper manufacturers specialize in just one or two types,
usually those that are made using similar machines such
as rubber and plastic, or leather and fabric models.
In this report, only a little over 10 percent of featured
suppliers produce all types of slippers and the majority
offer plastic and rubber as their main lines. The Products &
Prices section in this report discusses the main features
of each type of slipper and their price ranges. It also
explains the differences among low-end, midrange and high-end
models in each product category.
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