Two recent surveys conducted by Global Sources revealed that China suppliers remain optimistic about sales growth prospects in 2009, with 47% of executives expecting sales growth of 10% or more in 2009. And, despite falling consumer spending worldwide, many international buyers plan to increase imports this year, particularly from China.

The survey on China suppliers were conducted with senior executives of 191 companies engaged primarily in domestic sales and 202 companies focused mainly on exporting. It was found that, among suppliers selling within China, 57% expect double digit sales growth, while only 36% of export-focused companies project growth greater than 10%.

Global Sources' COO, Craig Pepples, believes this optimism is, in part, due to the fact that many have already adapted to the current global economic situation and have evolved new strategies to deal with the crisis. He said: "Given China's increasing cost base, cost cutting is less of an option than previously. To justify higher prices, suppliers are now looking to improve quality and production efficiency while, at the same time, building their brands. We see this as a natural evolution, and one that is not without precedent. Japan, Korea and other Asian economies also moved up market at about the same stage in their development when faced with economic and competitive pressures."

Pepples' opinion was based on a Chief Executive China survey which revealed that 43% surveyed executive plan to build brands and/or increase efficiency and product quality; 21% indicated they will cut costs; 20% said they will focus on the domestic market and/or emerging markets; and, 16% indicated they will expand their online channels.

In another survey, close to 50% of surveyed buyers expect to maintain or increase their total import value in 2009 and China remains at the center of their sourcing plans, with 57% of surveyed buyers expecting to increase or maintain their total value of imports from China in 2009, as compared to 2008.

"Buyers indicated their biggest concern in 2009 is declining consumer spending (21%). This was followed by supplier-side concerns, including difficulty in finding quality suppliers (16%), increasing prices (15%), and concerns about supplier stability (15%)," said Pepples.

The survey also indicated that buyers are reviewing all their options and sourcing more cautiously to reduce risk. Pepples said: "With buyers looking at more options for each purchase, suppliers must work harder to win the order. They must submit more competitive bids and lower minimum order requirements. Moreover, as more cautious buyers use a wider range of channels to find products, suppliers also need to promote themselves across more of these channels to get buyers' attention.

Pepples stressed that the 80/20 rule applies in many markets. A study of U.S. import market revealed that the top 3,000 importers accounted for two-thirds of all imports into the U.S. Pepples concluded: "It supports what we have been telling our suppliers all along. In today's challenging times, it is even more important for exporters not to waste time and energy influencing those without real buying power."