OEM-driven industry
Home to more than 450 exporters in the line, China contributes 15 percent of world supply. Makers are located primarily in Shanghai, Beijing, and the provinces of Guangdong, Zhejiang and Jiangsu. North and South America, Europe, Australia and Asia are the main markets. Reaching $600 million in 2007, export sales are driven by contract work. In fact, most suppliers interviewed cater chiefly to OEM clients. At Ricon, for example, all overseas shipments are buyer-specified designs. Tesco, Carrefour and Auchan are among the major customers. OEM and ODM orders account for 90 percent of Beijing Stronger Rich’s exports. The company’s 10-member R&D team can develop a sample in five to seven days. Even as the industry is OEM-oriented, some suppliers are building in-house brands to ensure long-term competitiveness abroad. OBM orders constitute half of Shaanxi Leap’s overseas shipments. The ISO 9001:2000-certified manufacturer is boosting market recognition of its Levic trademark by releasing models with multifunction features. Twenty percent of Elen’s exports are under the in-house brand. To keep its selection fresh, the 20-member R&D team launches 10 designs each month. While only a few suppliers specialize in whiteboards, many others offer the product as a substantial category. At most companies, the line accounts for more than one-third of total output. Various gift and premium items constitute the rest. Shaanxi Leap dedicates half of manufacturing to whiteboards. It offers writing instruments, pen and candle holders, holiday decorations and wooden crafts as well. At Beijing Stronger Rich, 40 percent of production is devoted to the line. Keychains, glow-in-the-dark novelties, and other promotional items are also supplied. The majority of China makers operate factories equipped with machines for cutting, spray-painting and printing. Many are capable of performing all production processes in-house. A few others outsource packaging and accessories, including markers, magnets and pushpins. Designs are usually tested for the strength of parts and the presence of harmful contaminants. As a result, products can comply with a range of international requirements. Releases from Elen and Ricon, for instance, bear the CE mark.
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