HONG KONG — Mainland China exported $331 million worth of faucets in the first quarter of 2006 — a 30% yearon-year increase, according to Global Sources' China Sourcing Report: Faucets.
The dollar growth of exports occurred despite the fact that the number of faucet suppliers has gone down by 13% in the past two years due to a growing consolidation in the Chinese faucet-manufacturing industry, the report states. Many Chinese faucet companies have been driven to close, the report notes, because of soaring raw material costs and more rigorous quality standards.
The report indicates that buyers sourcing faucets from Mainland China should expect higher prices and improved designs in the coming months. These findings are based on manufacturer interviews, factory visits and surveys.
"While export volume has been falling, export value has been rising, with prices up due to higher raw materials cost and an increase in exports of high-end models," said Michael Kleist, Global Sources' general manager/ content development.
The report shows that in the next 12 months, 83% of the Chinese manufacturers surveyed plan to increase prices, 16% expect to keep prices the same and 1% plan to decrease prices.
"In the coming months, makers are expected to continue to focus on more aesthetic designs and to add new features to attract buyers looking for high-end models," Kleist said.
Among surveyed manufacturers, 30% are developing models with watersaving features, 29% are creating more aesthetic designs, and 25% are working on models with better corrosion or tarnish resistance, the report states.
The 144-page report costs $445 and includes profiles of 85 Chinese manufacturers. It features a product gallery with 283 top-selling export models. It also includes production and pricing forecasts as well as reports on major and emerging supply centers in China.
Global Sources' China Sourcing Reports provide proprietary market information from factory visits and in-person interviews with Chinese manufacturers. China Sourcing Report: Faucets is available at www.chinasourcingreports.com/Faucets