Chinese footwear firms predict growth
19/11/2009
Chinese footwear manufacturers expect strong sales growth in the next 12 months, according to a new industry report.
Most of the companies that contributed information to the report, published by Hong Kong-based Global Sources, said they are currently working to improve operating efficiency and to lower costs, as price competition intensifies.
But as a result of these efforst, 17% of the companies Global Sources spoke to predict sales growth of more than 20% in 2010, 56% expect an increase of between 10% to 20%, 13% estimate sales to increase by less than 10%, and
14% expect sales to remain flat or to decline.
"Among suppliers we surveyed, 64% said price competition is their main challenge ahead. This comes as exporters struggle to keep costs low, while competing for orders from buyers who remain highly price-sensitive," said Livia Yip, associate publisher of the report.
She added: "In the past three months, 66% of suppliers either lowered prices or kept prices steady. Suppliers now realise that, going forward, they must look towards improving efficiency or offering value-added services to increase their margins."
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