DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/bmfgkg/china_sourcing) has announced the addition of the "China Sourcing Report: Camping & Outdoor Gear - 2012" report to their offering.
China's camping and outdoor gear suppliers are bracing for several challenges in the months ahead. Foremost among their concerns is how to maintain competitive prices without risking profitability. Increases in manufacturing outlay and the appreciation of the yuan are putting pressure on margins, forcing companies to raise quotes and take the chance that clients may source elsewhere.
Overseas, suppliers have to contend with weaker demand from the EU and the US as consumers there tighten discretionary spending amid the economic crunch.
Although the camping and outdoor gear markets in the two areas remain considerably large, many enterprises see limited growth opportunities in the US and the EU in the months ahead. These suppliers are looking at alternative destinations to keep revenue on the upswing.
Key findings
1. Several companies intend to enter or increase penetration of non-EU countries, the Middle East and the Asia-Pacific region in the next 12 months, even as they fortify foothold in the EU and North America. A number will be exploring South and Central America, and Africa for growth opportunities.
2. Many manufacturers are boosting R&D investment to provide models suited to new target markets. Part of the additional allocation is spent on hiring more designers, engineers and other technical personnel.
3. At most makers, efforts are geared toward enhancing functionality. Various technologies are being combined in a single product for greater user convenience. Portability, however, remains a key consideration.
4. The safety and environmental requirements of target export destinations are also major influences in product development. With regard to surface treatment, for instance, makers are steering clear of materials that contain phthalates or heavy metal. For light sources, companies are turning to LEDs.
5. Higher production costs and the appreciation of the yuan are expected to push prices of Chinamade camping and outdoor gear upward in the next half-year. Many companies, however, hope to contain increases within 5 percent to ensure competitiveness.
6. Export projections for the coming months are generally optimistic.
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