Shoe boxes

	Model CNJHT003 from Shanghai JHT has a 2.5mm-thick grayboard body. It is covered in art and textured paper.

The global slump has resulted in some makers registering huge losses and others enjoying sudden growth.

The global economic slowdown is spawning mixed results for China’s gift box industry.

While it is widely believed that most suppliers posted significant declines in export value for 2008, some reported stable or even higher figures. Their sales numbers, however, were still lower than projected.

One company interviewed for this update, Heng Feng Packaging & Paper Products Fty, predicted a 15 percent rise in export value from 2007 to 2008, but instead achieved only 8 percent.

Meanwhile, Hua Mu Color Art Paper Products Co. Ltd posted revenue of $12 million for 2008, up 25 percent from the previous year. This came as the maker started veering away from the US, one of the largest markets hit by the global financial crisis.

Instead, the manufacturer shifted its attention to the EU, which now receives the bulk of exports originally planned for the US. In fact, the EU absorbed about 60 percent of the company’s total shipments for 2008.

Several suppliers, on the other hand, suffered major setbacks, with some posting year-on-year decreases of 50 percent.

Nevertheless, the outlook for China’s gift packaging supplies industry, the third-largest in the world behind the US and Japan, remains positive. In fact, total revenue for the country’s entire packaging sector is expected to hit $60 billion by 2010 at an annual growth rate of 7 percent.

Additionally, the yearly output of paper, plastic and metal packaging products is projected to reach 4.91 megatons by 2015.

Further, with the cost of materials decreasing steadily, most makers will be reducing prices in the next six months. Manufacturers hope this will help attract more new customers and retain existing ones.

The majority of gift box suppliers export products under OEM and ODM. The main clients include Wal-Mart, Disney, Johnson-Rose, Jarden, Sennheiser, Sixtrees and DesignLab.

Products may be covered in 100 to 250gsm art paper, fabric, and synthetic or genuine leather. Of these, the last is the most expensive.

Among makers interviewed for this update, Sanxin Craft Ware Co. Ltd adopts pig-, cow-, sheep- and deerskin for its upscale gift boxes.

For fabric-covered versions, companies utilize cotton, satin, velvet and suede. Patterns are rendered mostly via embroidery.

The choice of base material usually depends on the actual size of the box.

High-density cardboard, for example, is adopted in large models suitable for storing heavy goods. Buyer preference is also considered.

Besides paper-based products, suppliers are offering plastic versions. PVC, PP and PET are among the variants employed in this category. Both clear and colored models are available.

Different surface treatments are applied according to the cover type. Gift boxes mounted in art paper are offset-printed and laminated with glossy or matte OPP film. Some releases are UV-coated as well.

Designs and logos are applied via silk-screening, hot stamping, and heat transfer and pad printing.

Other models also have embossed surfaces.

For increased visual interest, most makers incorporate a range of trimmings, including colored ribbon and lace. Further, they offer products with padded interiors.

China’s gift boxes come in various forms. While traditional round, square and rectangular models still dominate the country’s selections, novelty versions in heart and star shapes are gaining increased attention.

Most products are marketed individually, although some suppliers are offering sets of nesting boxes. Folding types are available as well.

Some models also boast functional enhancements. These include magnetic closures, spring-loaded metal hinges, built-in drawers and compartments, and transparent PVC windows.

Prices range from $0.50 to $2, depending on the material, size, shape, trimmings and surface treatment.

Gift boxes with polyfoam padding and satin or velvet covers, for example, are 10 to 20 percent more expensive than alternatives.

Models in special shapes are priced 3 to 20 percent higher, while adding ribbons and paillettes pushes quotes up by 5 percent.

To address the safety concerns of consumers, the majority of China makers are examining incoming materials for hazardous chemicals. They are also using environment-friendly elements.

Zhejiang Constant Stationery & Gift Co. Ltd, for instance, adopts water-based paint and glue.

In addition, most companies send finished products to SGS for independent safety testing.

China is home to about 10,000 gift box makers, the majority of which are export-oriented. Private enterprises dominate the country’s supplier base. Foreign-invested and state-owned companies account for the rest.

Aside from gift boxes, manufacturers offer other packaging items, including food storage containers. Additionally, many have printing capability, and make labels, posters and catalogs.

Regardless of size, most suppliers carry out key production processes in-house.