Consumer electronics products are enjoying massive popularity in China with strong demand from the domestic market, thus further enhancing the country’s already strong position in the global scenario.
According to the National Development and Reform Commission (NDRC), China’s industrial output and consumer electronics sector’s revenue are both anticipated to increase by 20%. The reason attributed to this growth is the development of 3G (Third-generation) technology and product upgrading, according to the news reported by ABCmoney.
In a posting on its Website, the state planning agency revealed a profit growth of 15% in 2007 for the electronics sector, spanning computer manufacture, electronics components and telecommunication equipments. In the first half of 2007, total industrial output in the electronics sector went up by 17.1% on YOY to almost $229 Billion.
The skyrocketing growth in the consumer electronics production in China is due to the continuous migration of manufacturing operations of the Taiwanese and multinational producers to the mainland. As for the demand, the main driving force for the escalating revenues of Chinese consumer electronics is the increasing production of digital consumer electronics products, particularly the more premium products like DTVs (Digital Televisions). With the more affluent customers increasing in number and purchasing products like DTVs, the domestic market in China is generating the demand for such products.
Already known as the country with highest per capita income in the world, China’s status is set to get a further boost from the massive growth currently underway in the regional economies. Industry experts expect solid growth in the disposable income of China’s population and expect it to lead to an augmented in-flow in the consumer electronics market in the country. New manufacturers and semiconductor suppliers are also being lured to the market by the impressive growth in consumer electronics production.
The surging popularity of consumer electronics products in China is generating plenty of opportunities for semiconductor suppliers, consumer electronics manufacturers and design houses in the country. This has increased the importance of horizontal cooperation measures between semiconductor suppliers and vertical collaboration amongst all the industry players.
The research analyst at RNCOS confirmed the emergence of China as a leading destination for consumer electronics sourcing. He says, “China proved more preferable than the other low-cost locations due to several key parameters, like quality of labor, government support, proficiency in English language, cost advantage, good customer relations and introduction of new technologies. China’s advantage is further enhanced by its renewed emphasis on quality software and processes”.
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