HONG KONG, July 6, 2009 – Despite the economic slowdown, most China luggage and travel goods suppliers are increasing capital expenditures to become more competitive as they anticipate stronger sales ahead, according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Luggage & Travel Goods (www.chinasourcingreports.com/luggagetravelgoods).

Among suppliers' top strategies to improve production capabilities:

• 32 percent are improving operating efficiency;
• 29 percent are reducing production costs;
• 14 percent are shortening design/development time;
• 14 percent are widening product ranges; and
• 11 percent are working to decrease product defects.

Suppliers' primary R&D plans for the next 12 months are as follows:

• 46 percent are improving durability/shock protection;
• 18 percent are adding storage/convenience features;
• 18 percent are using combined materials;
• 14 percent are developing more lightweight designs; and
• 4 percent are adding colorful designs.

"Instead of cutting costs, many suppliers are using this period of slow trade activity as an opportunity to upgrade their facilities and product offerings," said Spenser Au, Publisher of the Report.

"Most suppliers we surveyed are anticipating a strong recovery, with 71 percent expecting sales growth in the next 12 months and over half expecting growth greater than 10 percent."

Suppliers lowering export quotes, targeting EU market

Au said: "Fifty-seven percent of suppliers said they plan to decrease prices in the next 12 months. However, among those lowering export quotes, most are planning decreases of less than five percent, as they compete to win market share.

"Nearly half (45 percent) of companies we surveyed said they are primarily targeting the EU market, as the region has not been hit by the economic downturn as severely as the US.

"As suppliers work to become more competitive on both pricing and features, companies sourcing from China can expect to find higher-end products at similar or lower prices than they paid in previous months."

Supplier profiles, price forecasts and new luggage & travel goods export models

The 106-page China Sourcing Report: Luggage & Travel Goods provides detailed profiles of 28 suppliers with verified manufacturing and export credentials and contact details of an additional 13 exporters. It also includes a Product Gallery featuring 77 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), Private Sourcing Events (http://www.PrivateSourcingEvents.com) and Global Sources monthly magazines. For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://www.corporate.globalsources.com .

The China Sourcing Report: Luggage & Travel Goods is available for purchase at www.chinasourcingreports.com/luggagetravelgoods .

Free information about China luggage and travel goods suppliers and products can be found at www.chinasuppliers.globalsources.com/china-suppliers/Luggage.htm .