HONG KONG, June 30, 2008 – Due largely to higher labor and raw material costs, 93 percent of Greater China promotional wearable manufacturers plan to raise export prices in 2008. This is according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Promotional Wearables (http://www.ChinaSourcingReports.com/promotionalwearables).

Among surveyed suppliers planning to increase export prices of their promotional wearables:

• 21 percent expect increases of up to 5 percent;
• 55 percent project increases of 5 to 10 percent;
• 10 percent expect increases of between 10 and 15 percent; and
• 14 percent say they plan to increase quotes by over 15 percent.

"Rising production costs and fierce price competition are the biggest challenges companies are facing," said Report publisher, Spenser Au. "Manufacturers focused on low-end products are the hardest hit, as it becomes increasingly difficult to maintain already slim margins. Manufacturers of higher-end models are more capable of weathering the challenges and keeping healthy margins."

Among challenges that manufacturers of wearable promotion items cited they expect to face over the coming months:

• 40 percent said higher raw material costs;
• 40 percent cited price competition;
• 18 percent indicated labor shortages; and
• 2 percent pointed to stricter overseas standards.

Promotional Wearable Suppliers Targeting EU, Moving to Higher End Products

"Due to the falling US dollar, an increasingly common strategy is to finalize orders with prices in Euros rather than US dollars," Au said. "However, it is mostly EU buyers who are willing to negotiate on such terms. Clients in other markets are not as enthusiastic about making the switch. Therefore, many manufacturers are now focusing their export efforts towards the EU."

Among surveyed suppliers' marketing plans for the coming months:

• 54 percent plan to target exports to the EU;
• 27 percent plan to focus on exports to North America; and
• 11 percent plan to target exports to non-EU European countries.

The remaining 8 percent are targeting Asia, the Middle East, Africa and other regions.

Among surveyed suppliers' product development plans, nearly half (45 percent) said they are focusing on higher-end designs.

In-Factory Interviews, Price Forecasts and New Promotional Wearable Export Models

The 105-page China Sourcing Report: Promotional Wearables provides detailed profiles of 45 suppliers with verified manufacturing and export credentials. It includes a Product Gallery featuring 141 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources Websites, Face-to-Face Events, Trade Magazines and Research Reports

China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com), China Sourcing Fairs (http://www.chinasourcingfair.com), Global Sources monthly magazines and Global Sources Direct (http://www.GlobalSourcesDirect.com). For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://corporate.globalsources.com.

The China Sourcing Report: Promotional Wearables is available for purchase at http://www.ChinaSourcingReports.com/promotionalwearables.

Free information about Greater China promotional item suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/promotional-items.htm.