China made products still popular but Xiamen suppliers need to work harder

Many China suppliers, including those from Xiamen have participated in the China Sourcing Fairs held recently in Hong Kong, in an attempt to find top international buyers. They were not disappointed: China-made products were still popular among these buyers. However, for the 100 Xiamen companies that were exhibiting, most didn't fare particularly well. A Hong Kong buyer summarized their problem: if a store is still displaying goods made two years ago, is anyone willing to go in?"

The schedule has been full this month for the AsiaWorld-Expo -- Hong Kong's key location to showcase new products to the world buyers, because Global Sources' seven specialized trade shows were being held there. People from across the globe were commuting in the express trains connecting AsiaWorld-Expo, the airport and Hong Kong Island, and among them China suppliers were the busiest.

"All the survivors have come!" said Zhang Longda, a representative of Xiamen Jialianda Industrial Company. In the face the global economic slowdown and weak consumption, trade show is a good platform for showcasing products and a "touchstone" for response of volume buyers. Like Zhang, most mainland suppliers didn't just came to try their luck. They believed that they could really find good buyers after the financial crisis had filtered out some unqualified suppliers.

Good news: China remains global supply base

Global Sources Exhibitions' General Manager Tommy Wong has faith in made-in-China products – for these value-for-the-money products remain buyers' first sourcing choices amid the financial crisis.

A recent Global Sources research revealed that 57% of surveyed buyers expect to increase or maintain their total value of imports from China in 2009, as compared to 2008.

These findings were evidenced by the China Sourcing Fair: Electronics & Components, the first of seven shows. Wong said: "Our electronics show grew 3% despite the slowdown. This biggest ever spring show featured 2,500 booths from 13 countries and regions." World's famous buyers such as Atica and LG Sourcing attended the Private Buyer Meetings held at the Fairs too.

One Brazilian buyer, Intelbras, revealed that over 50% of their purchases come from China because of China's excellent supply chain and the low product prices.

Good news: home products consumption not in decline despite crisis

As midnight approached, Mongkok district in Hong Kong was still full of people, showing no signs of a weakened consumption amid the economic crisis. In day time, China Sourcing Fair: Home Products, Baby & Children's Products and India Sourcing Fair: Home Products had good traffic as well. Wong said among the seven trade shows, the Baby & Children's Product Fair saw the highest growth, increasing nearly 50% in booth number.

It was presumed that the economic downturn would weaken consumer spending, but in reality, it was not exactly the case. Global Sources' survey revealed that in 2009 buyers' two major sourcing categories would be consumer electronics (16%) and home products (12%), followed by auto parts, computer products and machinery. One participating Xiamen bathroom product supplier, Miss Tang, said buyers would not stop buying what they need, particularly the daily necessities.

Bad news: why Xiamen suppliers didn't score much?

Camellia So, Global Sources' Corporate Affairs General Manager, is a Xiamen native. She told us: "Nearly 100 Xiamen companies have participated in the show and over 20 of them are home products suppliers."

We interviewed some Xiamen exhibitors among thousands of booths in the show. One of them was Xiamen Jialianda Industrial Company, a well known picnic backpack supplier. During our interview, there were at least two serious inquiries from buyers with strong buying interest. According to Zhang, international buyers will think of Xiamen first when it comes to picnic backpacks.

However, most Xiamen exhibitors received only an average amount of orders. General Manager of Xiamen Xiahuichuan Trading Company said buyers have become more and more choosy. If products do not fit their tastes, it will be hard to win their orders.

Camellia So said that at the co-located India Sourcing Fair, India made products showed good craftsmanship, fine materials and are innovative. China suppliers should try to learn the strength of suppliers from other countries. One Hong Kong buyer summarized our problem: "if a store is still displaying goods made two years ago, is anyone willing to go in?" Other than the cost advantage, China suppliers should pay attention and adapt to market changes.