Basketware. Essential sourcing intelligence for buyers

Transcription

1 Sample pages only To order the full report please refer to the last page Basketware Hanoi CHINA Essential sourcing intelligence for buyers LAOS THAILAND CAMBODIA Thai Binh Quang Nam VIETNAM Binh Duong Dong Nai Ho Chi Minh City Vietnam manufacturer profiles Detailed profiles of 36 suppliers with verified manufacturing and export credentials Product & price trends Prices and specifications of 133 top-selling export products ranging from storage & laundry baskets to dishes & serving trays Design & material innovations Coverage of the latest trends in style and materials March 2011 US$100

2 EXECUTIVE SUMMARY BASKETWARE Supplier capability in Vietnam EXECUTIVE SUMMARY As a leading supply hub for bamboo and rattan, Vietnam has carved a niche for itself as one of the most important sourcing centers for basketware in the world. The industry benefits from several competitive advantages, chief of which is the abundant supply of indigenous raw materials obtained from numerous forests and plantations in the country. Thousands of craft villages home to artisans adept in traditional styling techniques provide a virtually limitless source of designs. As such, suppliers are able to incorporate native aesthetics in their products in addition to modern design elements. The sector is highly export-oriented. Companies featured in this report send almost all of their output to buyers in overseas destinations. The EU takes up close to half of turnover. North America and the Asia-Pacific region are other key markets. Bamboo basketware is the dominant product line among interviewed makers. This segment accounts for two-fifths of total turnover. Natural rattan basketware is the second-largest category as it represents nearly a third of overall revenue. Natural material basketware is next, taking up about a quarter of overseas sales. The industry consists primarily of small and midsize suppliers, almost all of which are owned and operated by local entrepreneurs. The first few manufacturing stages are typically subcontracted to home-based workers residing in craft villages, while the final processes are done in-house. Most steps are carried out by hand, although a few procedures such as framing, nailing and polishing employ machines. Suppliers are mainly located in Hanoi and Ho Chi Minh City. Specific provinces serve as major production hubs, depending on the type of basket manufactured. For example, Binh Thanh, Hoc Mon, Tan Binh and Cu Chi are key centers for bamboo and rattan models. Exports of basketware experienced an upswing in 2010 as demand from important foreign markets continues to improve. Revenue is predicted to grow significantly this year, with more customers in new markets expected to place orders with Vietnam suppliers. The following are some of the key trends we see in Vietnam s basketware industry: Product prices are generally expected to stay at current levels over the next six months. Keeping quotes unchanged is seen as an effective strategy to attract first-time clients as many suppliers expand their presence in new markets. The majority of featured companies will concentrate their marketing and promotional activities on the EU in the next 12 months. North America is seen to be the secondlargest market over this period. Limited availability of raw bamboo and rattan brought about by a high inflation rate and the government s conservation policies is seen as the most critical challenge facing the industry. Upcoming designs expected over the next 12 months will include items in various nontraditional and bright colors in an effort to promote product diversity among new clients. This report covers different types of baskets in Vietnam, including food, fruit, bread, deli, picnic, storage, utility, laundry, flower, napkin and shopping models. The Industry Overview section discusses key issues affecting export manufacturers and elaborates on the composition of the industry. The Products & Prices section details the features and price ranges of basketware. It also lists the main materials used and sourcing centers where they are procured. In this report 16 in-depth company profiles 20 short company profiles 133 top-selling export products Supplier demographics Supplier survey Industry statistics and charts OBJECTIVE & METHODOLOGY This Vietnam Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise. The Developing Country Sourcing Report series is part of Global Sources corporate social responsibility initiatives. It is offered in conjunction with The Kearny Alliance, whose mission is Aid Through Trade. The objective is to help create jobs in developing Asia through export promotion. To produce this report, larger, midsized and emerging manufacturers all with substantial export experience were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Vietnam in terms of geographic location, materials used and range of products offered. For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other companies in this report were either visited or contacted by phone. In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry. 3

3 CONTENTS CONTENTS INDUSTRY OVERVIEW Supplier summary Export statistics Products & prices Production & export statistics Price guides Supplier survey Export prices Export sales Export markets Major challenges R&D focus SUPPLIER PROFILES Supplier matrix Raw materials & exports Supplier profiles PRODUCT GALLERY Top-selling export products CONTACT DETAILS Copyright 2011 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited. Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong ISBN Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof). All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party. 4 Vietnam Sourcing Reports

4 INDUSTRY OVERVIEW INDUSTRY OVERVIEW The basketware industry in Vietnam is one of the major cornerstones of the country s SME sector. Generating annual exports of more than $200 million, the line has helped the country become one of the world s most important sourcing centers of woven handicrafts. The industry manufactures products that are regarded for durability and aesthetic craftsmanship. Suppliers generally create models that are pest-resistant and have enhanced construction. The sector has various competitive advantages. First of these is the ready availability of several types of natural raw materials used for baskets, including bamboo and rattan. According to the Ministry of Agriculture and Rural Development, Vietnam is the world s sixth-largest supplier of raw bamboo in the world and devotes roughly 1.4 million hectares, or about 4 percent of total land area, to cultivation of the plant. This results in an annual yield of 2.1 to 3.5 million tons of raw bamboo, depending on the species. The country also has 380,000 hectares of forests and plantations devoted to rattan. Local production of this material reaches anywhere from 20,000 to 50,000 tons annually. The abundance of raw materials helps suppliers procure components easily and inexpensively, and is a factor in preventing product price fluctuations by keeping usage of imported materials at a minimum. Vietnam s 2,000 craft villages are collectively another strength enjoyed by the industry. These communities are mainly composed of home-based artisans who specialize in the production of handicrafts such as baskets. Suppliers normally subcontract some processes to workers, who are skilled in native design and manufacturing techniques. The country also has around 720 trade villages, which are settlements that have organized as companies or business enterprises. These communities are capable of performing a complete line of manufacturing processes, and not just a few steps farmed out to individual artisans. Basketware is not classified as a distinct export sector in Vietnam. Instead, it is grouped under the broader rattan, bamboo, rush and carpet products line. According to the General Statistics Office of Vietnam, overseas revenue under this segment saw a resurgence in 2010 as it registered a 16 percent increase over the previous year. This was after it posted a 20 percent decline in 2009 as a result of the global economic crisis. Renewed demand because of improving business climate in key foreign markets is seen as the main factor contributing to the line s recovery last year. Export statistics from Vietcraft, a domestic trade association that focuses on handicrafts, indicate that Germany is the top overseas market for bamboo and rattan products. The country accounted for more than $37 million in shipments in The US is next, representing roughly $32.3 million in sales. At $31.1 million, Japan was the third-largest foreign destination. Among suppliers featured in this report, the EU is the leading regional market, taking up close to half of Export value Rattan, bamboo, rush & carpet products $ million Source: General Statistics Office of Vietnam Supplier summary Suppliers surveyed 36 Export sales $15.8mn Export ratio 98% Capacity utilized 76% Full-time employees 5,250 Data: All surveyed suppliers revenue. North America and the Asia- Pacific are the two other significant destinations, with each accounting for nearly a quarter of turnover. As the business climate in key foreign markets continues to recover from the financial slump, local economists expect the industry to continue posting significant gains. Analysts predict growth in the sector to exceed 15 percent this year because of the government s growing investment in and enactment of key policies beneficial to the bamboo and rattan segments. Challenges Although a bright outlook is expected for the basketware sector over the next 12 months, it faces a number of roadblocks that threaten to slow down development. Even though Vietnam boasts an abundance of different types of natural materials, some suppliers still find it difficult to source them j F M A M J J A S O N D 11

5 SUPPLIER PROFILES An Cu Investment and Trading JSC Since its establishment in 1990, An Cu has been manufacturing and exporting woven handicrafts made of natural materials. In 2010, the company earned $1 million in revenue. The company s entire output is exported. The EU is the primary overseas destination, accounting for two-fifths of turnout. Germany, France and Poland are the major buyers in the region. The US takes up 30 percent. The same amount is sent to South Korea and Japan. Bamboo baskets are the best-sellers, representing half of total production. Items made of rattan and other natural materials are also available. Prices range from $1 to $30. High-end models include baskets with a ceramic base and elaborate embellishments. Laundry baskets crafted from rattan or water hyacinth are midrange. They are offered for at least $20. Bamboo, rattan, seagrass, fern, water hyacinth and banana leaves are sourced from the provinces of Ha Tay and Hoa Binh. Company facts The company employs three designers who can release up to 15 models every month. Samples can be finished within 10 days, depending on the availability of materials. Sixty percent of orders are on OEM basis. An Cu operates a 3,000sqm workshop in Hanoi s Chung My district. Dyeing, drying, polishing and packing are performed here. Cutting, weaving and shaping are subcontracted to local households. Forty people work full-time, 10 of whom are based in the head office in Cau Giay district. The supplier can make as many as 80,000 pieces a month when operating at full capacity. Two employees conduct QC on all finished products before packing and shipping. Inspections emphasize the construction, color and shape. The minimum order requirement is one TEU. Delivery is usually within 20 days. Cartons are normally used as packaging. An Cu regularly attends trade shows in Hanoi and Ho Chi Minh City. Capability Processes performed Material treatment Cutting Weaving Shaping Painting Polishing Contact details No No No No Yes Yes Exports by product Bamboo basketware 50% Natural rattan basketware 30% Synthetic rattan basketware Plastic basketware Natural material basketware 20% Exports by market United States/Canada 30% European Union 40% Europe (non-eu) Asia-Pacific 30% Middle East Other Year established 1990 Head office location Cau Giay (Hanoi) Ownership Locally owned Factory location(s) Chuong My (Hanoi) Full-time employees 40 Total annual sales (all products) $1,000,000 Sales & output: Basketware Annual sales $1,000,000 Share of total sales 100% Annual export sales $1,000,000 Total monthly capacity 80,000 pieces Average monthly output 80,000 pieces Capacity utilized 100% Average monthly exports 80,000 pieces Export ratio 100% Business contact NGUYEN Eric Phone (84-4) Fax (84-4) info@acimex.vn ancu@acimex.vn URL Address 14/4 Tran Quy Kien Street, Cau Giay, Hanoi, Vietnam 26 Vietnam Sourcing Reports

6 SUPPLIER PROFILES Popular export models Model: VB-86/2 Price: $5.00 Description: Laundry basket set; two pieces; bamboo body and cotton lining; 43x34x50 and 43x34x48cm; available individually; in various sizes Model: VR-007 Price: $1.50 Description: Fruit basket; rattan; natural finish; 21x21x12 or 21x21x11cm; in various sizes Model: VB-127 Price: $3.00 Description: Utility basket; bamboo; dyed; 43x18cm; in various colors and sizes Model: VR-029 Price: $1.00 Description: Fruit basket; rattan body and ceramic base; natural finish; 14x14x3cm; in various sizes Model: VB-124/2 Price: $1.20 Description: Bread basket; bamboo body and cotton lining; 42x32x16cm; in various colors and sizes Model: VB-129/2 Price: $1.00 Description: Utility basket; bamboo; dyed; 38x30x18cm; in various colors and sizes 27

7 PRODUCT GALLERY PRODUCT GALLERY Bamboo basketware An Cu (profile page 26) Model: VB-086/2 Price: $5.00 Description: Laundry basket set; two pieces; bamboo body and cotton lining; 43x34x50 and 43x34x48cm; available individually; in various sizes An Cu (profile page 26) Model: VB-124/2 Price: $1.20 Description: Bread basket; bamboo body and cotton lining; 42x32x16cm; in various colors and sizes An Cu (profile page 26) Model: VB-127 Price: $3.00 Description: Utility basket; bamboo; dyed; 43x18cm; in various colors and sizes An Cu (profile page 26) Model: VB-129/2 Price: $1.00 Description: Utility basket; bamboo; dyed; 38x30x18cm; in various colors and sizes Cuu Viet (profile page 30) Model: TD02 MOQ: 200 pieces Packaging: Cardboard box Delivery: 60 days Price: $8.67 Description: Storage basket; bamboo; 13x10x13cm; in various colors and designs Cuu Viet (profile page 30) Model: TD05 MOQ: 200 pieces Packaging: Cardboard box Delivery: 60 days Price: $11.00 Description: Storage basket; bamboo; 20x10x20cm; in various colors and designs 71

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