The Hindu Business Line : Race in the products turf

THE latest posting on www.corporate.globalsources.com is datelined Hong Kong, August 22, and it informs that mainland China's backpack manufacturers are turning to the production of mid-range and high-end products such as fashion and specialty backpacks, "to combat rapidly shrinking profit margins brought on by higher raw material costs and labour shortages."

From there, a link leads to Global Sources, `Reliable supplier and product information for buyers worldwide,' which lists 86 reports including new ones on batteries, hats, flatware, set-top boxes and so on. Let me caution you, however, that the reports are expensive!

You may prefer, instead, to read publications from Asian Sources, distributed in India by Bharat Book Bureau (www.bharatbook.com) . But, first, a caveat, especially for the China-phobic: what you read can be highly disturbing in terms of products on offer! To be fair, however, a few Indian manufacturers are mentioned.

For instance, Outlook 2005 on `electronics' mentions flash MP3 players, home theatre speakers and car security among `products to watch.' Do you know that in the `speakers line,' China's production for 2004 was pegged at 69 million units, compared to 60 million the previous year. Current year's offerings are to feature "enhanced cosmetic designs, digital decoding capabilities and wireless technologies."

Models with 2.4 GHz RF systems and Bluetooth support are already in production in mainland China, informs the book. A special feature on RFID or radio frequency identification cites a study by AMR that this technology can save 6 to 7 per cent of storage, transport and inventory costs. But the main problem is one of compatibility as between scanners and tags.

The good-old HDD is getting married to DVD recorders; and advanced features such as `multi-channel simultaneous recording' will be available in high-end models, to allow users "to record different programs from different TV channels or video source at the same time into the hard disk drive." The dragon is breathing fire in smoke alarms too. Manufacturers talk of "wireless units that employ learning code technology" and AI (artificial intelligence) to eliminate false alarms.

Another publication is about `gifts and home products.' Portable air-conditioners are taking off, and new models cost about $2,40,000 to develop, one learns. `Efficient supply chains' help in boosting AC sales. Watch for new action figures that will feature "detailed painting, well-crafted bodies, and more movable joints," even as Hong Kong is revving up output and quality. Factories are working overtime to produce "a series of historical and sports figures as well as models of soldiers and counter-terrorist units that vary in heights from 8 to 12 inches."

Gift boxes sport irregular shapes, going beyond traditional geometric forms. "Details such as clear windows, mesh, handles and ropes can also be attached, while themes vary from floral, cartoon to rodeo." While India's latest releases sport gold leafing, silkscreen printing, plain and foil embossing, and calligraphy, China offers "offset printing, varnishing, bronzing, hot stamping, spray painting, cloth layering and UV processing." Most suppliers are able to produce counter-samples of buyer-specified design within a week, informs the publication, and cites Rakesh Singh of Greentek saying that his company can do this in just an hour!

The third publication on `hardwares' highlights the efforts of manufacturers to turn cost-rises into opportunities. Thus, motorcycle makers are expanding their product lines to include higher-displacement models; sink/basin companies are adding glass models to their portfolio; and auto-part makers use recycled metals more. Some suppliers are even offering semi-finished products to save on assembly, storage and labour costs. An example cited in the book is of Taiwan's makers of industrial exhaust fans; they now ship impellers, motors and other components to their OEM customers, along with detailed instructions on how to assemble these products".

Indispensable read for those in industry!

BookMark@thehindu.co.in

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