22 October 2008 | Jake Kanter
Nearly a third of buyers plan to increase sourcing in China despite rising prices in the country, a survey has revealed.
The study of 300 purchasers from international firms by market research company Global Sources found 30 per cent will up their spend in China over the next year. In the same report, the respondents noted that increasing material costs would be one of their biggest challenges going into 2009.
Some 39 per cent of the buyers expect their China sourcing strategies to remain the same. In addition, 71 per cent said finding new markets to purchase from was "critical". India and Vietnam were the two most popular new sourcing destinations for the buyers.
Sarah Benecke, executive director of Global Sources, said China remains a key target for purchasers. "Manufacturers must react to international buyers' needs by improving quality and providing more competitively priced products. More innovation, a wider product range, decreasing development and production time and improving customer service are all deemed critical."