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To fuel export growth, companies are keeping prices level or even reducing them. Another strategy involves shifting to upscale designs.
China suppliers of skates and skateboards are banking on competitive prices and improved designs to keep exports strong amid the global economic crisis. Customs statistics show that overseas sales have been growing in the past three years.
With material cost pressures easing and the yuan expected to depreciate, suppliers plan to either bring quotes down or hold current levels.
In the next six months, half of the companies interviewed for this report will adjust prices downward by 5 percent. The rest will retain current quotes and wait until raw material costs stabilize before implementing a price rollback.
To sustain buyer interest, suppliers are also paying greater attention to design upgrades. This is especially true among makers that are shifting to midrange and high-end production.
Efforts include enhancing user friendliness and visual appeal.
For skates, companies are adopting functional fabric such as Coolmax for improved comfort. Aside from its breathable and moisture-wicking properties, the material has deodorizing and anti-bacterial functions.
For greater user convenience, the heels of most inline skates can be adjusted to suit different feet sizes. The latest skateboards feature multicolor graphic prints on the top and backside of their decks. In addition, some models are fitted with wheels that light up or play music when in use.
Other strategies to remain competitive include controlling operating costs by improving the management system and reducing production wastage. Most makers also prefer online advertisements to trade shows since the latter can be more expensive.
China offers a range of skates, with inline models accounting for 70 percent of exports. Regular quad versions, landrollers and booster blades are also available.
Materials and components are the main price determinants. Going for $15 to $25 per pair, low-end skates have PVC uppers with thin foam and mesh lining, and PP or steel frames. The wheels come in PVC and are fitted with ABEC-1 or 3 bearings.
Midrange models that adopt PU uppers padded with thick foam are priced as much as $50. They have steel or aluminum alloy frames, PU wheels and ABEC-5 bearings.
More-expensive designs feature carbon fiber or genuine leather uppers lined with thick foam and mesh. The frames come in aluminum and magnesium alloys, which weigh only about one-third and one-fourth that of steel, respectively. Some models have light-up or musical PU wheels. ABEC-7 bearings are adopted.
China-made skateboards come in caster, twin-tailed, regular, longboard and electric models. The first two categories account for approximately 40 and 35 percent of exports in the line, respectively.
Prices start at $6 and may exceed $16 per piece, depending largely on the materials.
Decks made of grade 2 recycled ABS are used on low-end plastic designs, while grade 1 versions are employed in midrange models. More costly by at least 10 percent than the first two variations, virgin ABS is adopted for upscale products.
Wooden skateboards feature a five-, seven- or nineply maple deck. Low-end and midrange designs use domestically sourced materials, while higher-priced versions employ wood sourced from Canada.
The trucks of both plastic and wooden models come in PP, steel, and aluminum and magnesium alloys. The wheels are made of PVC or PU and fitted with ABEC bearings.
Most of the approximately 300 suppliers of skates and skateboards in China are small and midsize companies.
Small makers have an annual revenue of less than $1 million. They usually have a two-member R&D team.
In contrast, annual sales of large suppliers reach more than $10 million, including revenue from OBM business. Their product development groups consist of at least 10 personnel.
Regardless of size, makers perform visual inspection on the appearance and measurement of finished products. A number of midsize and large suppliers conduct crash and slide tests.
Most models are sent to SGS and Intertek to ensure compliance with required safety standards such as EN 13843. In addition, some designs need to be certified as environment-friendly.
Skates are commonly offered by manufacturers of footwear and sporting goods. The production of shoes and assembly is done in-house, while the frames and wheels are outsourced.
Guangdong province is the main production center for skates.
Skateboards can be sourced from suppliers of sports equipment, motors, go-karts and ATVs. Production is concentrated in Zhejiang province.