ASIA - Suppliers in China are ‘cautiously optimistic’ about their export revenue in the second half of 2012, according to a new survey by Global Sources.
Nearly 60 per cent of the 506 exporters surveyed by the international organiser said export earnings are expected to be better compared to the same period in 2011. At the same time 15 per cent of manufacturers anticipate their sales will remain the same, while 26 per cent anticipate revenue will decline.
However Chinese suppliers are concerned by both economic uncertainties in traditional export destinations and rising production costs.
Industries offering consumer electronics, computer, security and telecom products and electronic components are more optimistic than their counterparts in areas such as home products, gifts and premiums.
According to the survey results, a reduction in orders from the US and the EU are the biggest challenges facing Chinese suppliers, followed by rising production costs and price competition.
“Exporters are already taking proactive measures to sustain their export business in view of slowing business from the EU and the US,” said Global Sources' president of corporate affairs Craig Pepples. “Strategies to improve exports in the year ahead will be focused on market expansion and client retention.
Pepples claims that 55 per cent of suppliers will seek new customers in countries outside of the US and the EU. “Many respondents will be more flexible with prices to retain their current clients. Companies will also boost production efficiency to keep manufacturing costs in check.”
South America is expected to be an important export market for Chinese suppliers in the coming months. While eight per cent of respondents are currently focused on the continent, 18 per cent noted it would be their target market through to the end of the year.
Buyers in the US, Eastern Europe and Africa are also expected to place more orders within the next year.
The survey was conducted in the first two weeks of August by email. A total of 506 suppliers were interviewed from various industries, half of which were based in Guangdong province, 25 per cent were from Zhejiang while the rest were from Jiangsu, Fujian and other provinces.
Global Sources recently posted positive revenue results for the second quarter of the year.
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