China
exported 956.9 million watches worth US$977.4
million in 2004. However, export growth rates in the
industry have been decreasing dramatically. Export
sales last year increased by only 2.5 percent,
significantly lower than the 22.4 percent growth
rate registered in 2003. Even volume growth has
slowed. Where total outbound shipments increased 10
percent in 2003, they rose only 5.4 percent in 2004.
The downward trend is continuing in 2005. Exports
in the first seven months of 2005 were down 7.7
percent to US$460.9 million from the same period in
2004. The number of pieces shipped fell 13.7 percent
to 418.6million.
One of the main reasons for the decrease in
exports is the decline in demand for low-end watches
including promotional models.
The following
are some of the key trends we see in China's
watches industry: |
|
Many suppliers are shifting
focus to midrange watches to overcome
declining demand for low-priced models. Some
of the larger companies are also trying to
increase exports under their in-house
brands, while a few have even started
producing high end tour billon watches. |
|
|
Even though many
watchmakers are enhancing their designs,
low-end watches will continue to be China's
mainstay for the next several years. This is
mainly because of a lack of skilled and
experienced designers. |
|
|
Rising material and
production costs will have a limited impact
on export prices, with a large number of
suppliers increasing quotes, mostly by up to
5 percent. The majority, however, will keep
prices stable. |
|
|
The output of multifunction
watches is expected to increase
substantially in the next 12 months. |
|
Aside from the usual calendar and alarm
functions, these watches have value-added functions
such as USB flash disks drives, digital cameras, MP3
players, laser pointers, pedometers, heart-rate
monitors, radios and even universal TV remote
controls.
Watchmakers in China produce promotional,
classic, fashion, sports, children's and tech
watches. These are also the scope of this report.
While most suppliers offer a range of watches
across all categories, some specialize in one or two
lines. More than 61 percent of the suppliers in this
report produce at least four kinds of watches for
export, usually with classic, fashion and sports
designs as the major lines. Nineteen percent
specialize in one or two categories, usually
children's or tech models.
The features and prices of each kind of watch are
discussed according to low end, midrange and high
end in the Products & Prices section.
The R&D module discusses how makers are improving
product development and design capability as a means
to be more competitive. The Materials & Components
section explains sourcing of movements, modules and
other materials, and how this affects overall
product quality. The Manufacturing section details
the production and QC processes in small, midsize
and large companies.
Most watch suppliers in China are locally owned.
Sixty-eight percent of companies profiled in this
report are private locally owned. Hong Kong-owned or
invested companies comprise 22 percent and a few are
Taiwan-owned or invested.
And more... To see the full Executive Summary
order now.
 |