Makers boost cost efficiency

	Designs from Shanghai Zhensheng adopt high-grade PVC, PU or PU microfiber cover.

Companies expand market reach and cut spending to improve margins.

Suppliers of sports balls in China are looking to sustain the momentum generated by significant revenue growth in the first half of 2010. Total overseas earnings are anticipated to increase up to 20 percent YoY, thanks largely to the FIFA World Cup in South Africa. But without another big sporting event in coming months to stoke demand, many makers are wary that orders may decline and blunt earlier gains.

As such, enterprises are implementing various strategies to close out the year on a positive note. Many are looking to expand deliveries to key markets such as the EU and North America. Several are eyeing potential outlets, including South America and Africa, which absorb 5 to 10 percent of exports among suppliers.

OEM orders comprise the bulk of shipments. Some makers offer products that carry in-house brands, mainly to emerging destinations and the domestic market.

On the home front, suppliers are addressing industrywide issues that may affect manufacturing and pricing. The cost of critical raw materials continues to rise and is projected to remain in an upturn in the next few months. A ton of natural rubber in April 2010 increased nearly 100 percent YoY.

To alleviate the situation, companies are finding ways to cut down expenses.

One strategy they are using is to minimize wastage and improve production efficiency. For instance, at Wuxi Xinfda International Corp., factory lines and machines are set up close to each other to hasten the flow of materials and parts and thereby shorten time to market.

Shanghai Zhensheng Stationery & Sports Goods Co. Ltd, meanwhile, intends to automate more processes. It also stockpiles inputs to prepare for cost surges.

United Rings Enterprise has installed separate lines for three different balls instead of fabricating all of them in a single one. This system results in higher-quality output and enhances the skills of factory workers. The company is moving production to Xuyu, Jiangsu province, where skilled labor is abundant and less costly than those in other hubs.

To boost sales and competitiveness, makers in China are highlighting product development efforts on aesthetics and material upgrades.

Under the last, many enterprises are now adopting safer alternatives that improve handling and gameplay. Recent releases are made of inputs free from polyaromatic hydrocarbons or the six regulated phthalates, heavy metal and azo dyes that can cause allergic reactions.

PVC leather is still widely utilized, particularly the high-grade types. PU and TPU versions are also fast becoming popular options among makers. The latter is more flexible, durable and environment-friendly than genuine leather, which requires additional lamination to repel water. Models made of TPU leather account for roughly 5 to 10 percent of output.

Composite material can also be used as a substitute for genuine leather. One process is merging cowhide with microfiber, which has a deodorizing property. Guanfeng Sporting Goods Co. Ltd employs this combination for its basketball line.

Most releases have glued, machine-stitched or handsewn panels, while a few are seamless. These come in various prints and hues, including metallic, honeycomb and laser finishes.

Designs are commonly developed in-house but several makers often subcontract the task to domestic or foreign partners. For instance, Guanfeng cooperates with its materials supplier in creating PU with metallic colors. United Rings has partners for brand and logo creation.

Before sending out their products, the size, weight and air tightness are checked. A fatigue test, usually a simulation of how the ball will be eventually used, is commonly done.

Sports balls sent to Australia, the EU, Japan, North America and South Korea conform to global standards such as REACH, EN and ASTM. About $300 to $800 per model is spent on acquiring certification. FIBA, FIFA, FIVB, MLB, NBA and other international sporting associations also charge fees for tests and licensing.

China’s selection includes inflatable and solid core balls, with the former making up the larger category. Basketballs account for half of the inflatable output, soccer balls 30 percent, and volleyballs the rest.

Recreational versions represent more than 60 percent of turnout, while the remainder are for training and professional use. Sixty percent of models are found in the middle of the price spectrum, and the balance is evenly split between the low and high end.

Prices are determined by the materials and the panel binding or bonding employed. Most designs are made of PVC, PU, genuine leather or rubber. PVC, PU or leather is used for covers, while butyl or rubber is for the bladders.

Basketballs: Entry-level quotes are at $1.30 to $4 each. Models under the category are mainly for recreational and promotional use, and have rubber covers and bladders. They are lined with two or three plies of polyester thread. The covers feature colorful silk-screened logos and artwork.

Going for $4.25 to $6.50, midrange versions for intermediate level generally employ PU or PVC leather, or rubber covers with three plies of nylon or cotton thread. Their bladders are of butyl and natural rubber.

Often for professional-use, high-end variants are from $6.75 to $20 and may come with FIBA approval. They have butyl bladders with a 4-ply nylon thread lining. Full-grain cowhide, microfiber or PU leather covers are utilized for better grip.

Soccer balls: Versions come mainly in size 5 although smaller ones for younger users are also available. The number of panels vary from 12, 24 or 32.

Marked $1.40 to $3.50, basic designs are suitable for recreation and leisure. These typically have machine-stitched or glued 3P-free PVC covers. Their rubber bladders are 15 to 30 percent butyl.

Intermediate models at $3.75 to $6 are usually for training and recreation. They employ handsewn or machine-stitched PU or 6P-free PVC, which has the feel of genuine leather, for the cover. The rubber bladders contain 30 to 50 percent butyl.

Upscale selections go for $6.25 to $20. Most conform to sports league standards and many are approved by FIFA. Weighing 420 to 445g, their bladders are made of double-layer latex or rubber containing 70 percent butyl. The cowhide or imported PU leather used as covers have panels handsewn or bonded through heat pressing.