Reliable exporters: find them and meet them

HONG KONG, August 9, 2011 – China suppliers of home entertainment devices are focusing R&D on technologies for next-generation models as competition intensifies and they shift upmarket. High-definition, 3D, network connectivity and energy-saving applications are key trends, with manufacturers pushing distinctive releases to gain an edge.

This is according to Global Sources' (NASDAQ: GSOL) China Sourcing Report: Home Entertainment (http://www.chinasourcingreports.com/homeentertainment). The Report covers major categories in China's home entertainment industry, namely TVs and set-top boxes, Blu-ray and DVD players, home theater and audio systems, and radios.

Publisher of the Report, Livia Yip, said: "China-made home entertainment products continue to be a robust export industry with manufacturers showing optimism and creativity. Two-thirds of surveyed suppliers anticipate exports soaring by more than 20 percent in the months ahead.

"While many manufacturers see unique releases as the way to increase orders, others aim to boost sales by cultivating new markets. Even as the EU and North America remain the top export destinations, companies are exploring opportunities in Thailand, Singapore, India and other Asian economies with the China-ASEAN Free Trade Area agreement now in force."

China suppliers enhance R&D efforts as prices rise
China Sourcing Report: Home Entertainment indicates that with product differentiation as a goal, R&D activity is rich across the industry. In the TV segment, releases offer 3D and power-saving units. New HDTVs feature improved resolution and refresh rates. Enhancements on home theater systems include better power output and audio.

The latest Blu-ray players also utilize 3D and HD applications. Audio systems have increased energy efficiency even with greater functionality. In mini-component systems, China suppliers are likewise adding value with multimedia capability. The trend in radios is to develop niche products, from solar models and dynamo-powered flashlight designs to Internet radios served by Wi-Fi hotspots.

The Report also shows product prices rising, generally by between 5 and 10 percent. Two-thirds of suppliers surveyed plan to nudge quotes upwards in the coming months, due to higher costs. They are mainly dealing with increased plastic costs as unrest in the Middle East makes crude oil more expensive. In addition, Japan's tsunami in March has affected audio component supplies.

"In the first half of 2011, China suppliers' spending on manufacturing inputs soared by 25 to 30 percent. Under efforts to minimize expenses, companies are employing measures such as switching to domestic sources for raw materials and parts," Yip said.

Other industry trends indicated by China Sourcing Report: Home Entertainment include the following:

• 94% of survey respondents plan to increase capital expenditure in the coming months
• Price competition is regarded by 31% of manufacturers as their biggest challenge
• Currency fluctuation and design piracy are also emerging as key concerns

Supplier profiles, price forecasts, and the latest home entertainment products & supplies for export
The 77-page China Sourcing Report: Home Entertainment provides detailed profiles of 36 suppliers with verified manufacturing and export credentials. It also includes a Product Gallery featuring 90 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources websites, face-to-face events, trade magazines and research reports
China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online (http://www.globalsources.com), China Sourcing Fairs (http://www.chinasourcingfair.com), Online Sourcing Fairs (http://www.onlinesourcingfair.com), Private Sourcing Events (http://www.PrivateSourcingEvents.com) and Global Sources monthly magazines (http://www.globalsources.com/SITE/MAGAZINES.HTM).

For more information about Global Sources' products and services that connect quality buyers with verified suppliers, please visit http://www.corporate.globalsources.com.

China Sourcing Report: Home Entertainment is available for purchase at http://www.chinasourcingreports.com/homeentertainment .

Free information about China suppliers of home entertainment products can be found at http://www.chinasuppliers.globalsources.com/china-suppliers/Home-Theater-Systems.htm .