| | 
 |
| | The double-wall Olgiy 6 model from Ningbo Top Green is designed to accommodate four occupants. |
 |
High-value designs and branding are becoming the norm in this low-cost hub as suppliers try to gain an edge over competitors.Ningbo is the primary source of camping tents in China, being home to more than 600 business enterprises involved in either the manufacture or marketing of the line. The city accounts for more than half of Zhejiang province's output and exports, and about 30 percent of the country's production. Within this large supplier base, competition is intense. Consequently, models are generally 3 to 10 percent less expensive than those in other hubs. A key factor enabling companies to offer lower quotes is the logistical advantage they gain from being near several textile clusters such as those in Yiwu and Shaoxing. Sourcing from other provinces and shipping products overseas is also convenient, and consequently less costly, with the proximity of Ningbo Beilun and Shanghai harbors, two of China's international deepwater ports. Various factors, however, are slowly eroding the lowcost advantage that the city's camping tent sector enjoys. In the past six months, suppliers have been forced to raise prices to cover higher raw material costs. Wages and other labor-related expenses have gone up by about 20 percent and are expected to increase further during the year. Amid these challenges, suppliers in Ningbo are gradually shifting to high-value-added production to improve profitability and ensure the long-term viability of their businesses. At present, the majority of companies are operating on slim margins, since additional costs are not being passed completely onto buyers for fear they might switch to competitors. The yuan's appreciation is aggravating this situation, resulting in a percentage of profits being lost for every increase in the currency's value against the US dollar. Many suppliers, therefore, have become aggressive in developing their own designs for the upscale market. Instead of depending on customers, several keep abreast of the latest trends by participating in international trade shows. Quality is also being emphasized, from product development to manufacturing to packaging. Makers are improving their QC systems by investing in equipment that will enable them to carry out more testing processes in-house. Branding, as well, is becoming common among companies trying to move upmarket. Several suppliers are advertising in various media, including the Web, to promote their trademarks. Ningbo Shengtong Outdoor Products Corp. is one of those promoting in-house brands. Models under its Shengtong trademark currently account for only 10 percent of exports, but the company aims to increase the share of OBM products in coming months. Europe and North America are the main targets of the camping tent sector's move toward high-value-added production. Several suppliers are also strengthening their foothold in the domestic market, believing there is potential for growththere with rising disposable incomes promoting demand for various leisure and sporting goods.
Products & prices
|