May 4 2009
Despite the financial crisis, demand for 'green' products continues to spur growth in China's lighting and electrical export industry. This is according to Global Sources' (Nasdaq: GSOL) China Sourcing Report: Lighting & Electrical .
"Thanks to legislation favoring renewable energy and power-saving devices, China suppliers have been bucking the export downturn," said Report Publisher, Spenser Au.
"Based on China customs statistics, revenues between July and November 2008 rose 34 percent year-on-year. This was around the same time China started to feel the impact of the economic slowdown.
"Going forward, China suppliers remain optimistic, with the majority expecting sales growth of more than 10 percent."
Among surveyed China suppliers of lighting and electrical products:
- 46 percent expect sales to increase by more than 20 percent;
- 38 percent project sales growth of 10 to 20 percent;
- 8 percent expect sales to increase by less than 10 percent; and
- 8 percent project flat or lower sales.
Due to lower component costs and price competition:
- 49 percent of surveyed suppliers say they plan to decrease prices;
- 32 percent plan to keep prices steady; and
- 19 percent plan to increase prices.
Au said: "With more suppliers focusing on producing eco-friendly products, buyers sourcing from China can expect to find a greater range of products at even lower prices than what they paid in 2008."