Sports Watches

China exported 908 million sports watches worth US$953 million in 2003. By 2008, sales are forecast to more than double — to US$2 billion dollars.

To deal with this surging demand, China suppliers are boosting capacity dramatically. Which producers are best positioned to meet your needs in such a time of rapid industry growth?

You'll find the answers in this report, as it provides you with profiles of 43 major manufacturers, including in-depth findings from in-person tours of 15 factories.

Plus, you'll get a comprehensive industry overview with information on new products, price trends, design plans and other key issues that will impact your sourcing in 2005.

What you'll get

An up-close examination of China's sports watch export industry, with insights into factors affecting production, product quality, pricing and supply

Deep profiles of 15 major sports watch manufacturers, and profile tables of a further 28 suppliers from China's main production centers of Guangdong, Fujian, Zhejiang and Shanghai.

Key information to help you locate manufacturers that supply to leading brands such as Adidas, Speedo, Wal-Mart, Walt Disney and Coca-Cola

Full-color pictures and complete specifications for 43 top-selling sports watch export models

Insights into which companies are producing high-end sports watches with USB flash drives, pulsemeters, altimeters and 20ATM water-resistance functions

How you'll benefit

Save time and money on your next sourcing trip by focusing only on producers relevant to your needs

Learn in advance about the expansion plans of major suppliers, including joint ventures with Swiss companies

Find out what steps manufacturers are taking to improve product quality and which producers best meet your quality requirements

Shortlist your next suppliers with easy-to-use listings of all featuring manufacturers, including comparative statistics and verified contact details

Executive summary

China is the world's top producer of watches in terms of volume. China customs statistics show the country exported 908 million pieces valued at US$953 million in 2003, a 10.2 percent growth over 2002. Exports are predicted to hit US$1.2 billion this year.

This report focuses on the sports watch sector of the industry, including models with sports- or health-related functions, which have shown strong growth prospects. A recent study on the U.S. watch retail market-China's largest export destination-showed 2003 sports watch sales amounted to US$1.7 billion and projected growth to US$2 billion worth by 2008.

Sports watches in this report range from basic digital models with at least 3ATM water resistance and alarm, to multifunction analog versions with 10ATM water resistance and USB flash drives.

All sports watch suppliers in China are privately owned, and more than half of these are JVs or foreign-invested, mostly by Hong Kong companies, producing sports watches mainly under OEM contracts. Companies featured in this report supply to buyers such as Wal-Mart, adidas, Speedo and Disney.

Eighty percent of these suppliers are located in Guangdong province. Most of these companies are assemblers that produce only one or two components in-house and source all other parts from local factories. As such, these suppliers can produce any type of watch requested by a buyer, including sports watches. This report covers companies that can offer any type of watch but are primarily focused on sports watches.

Suppliers are building more factories to increase capacity, in anticipation of the expected growth in the product line. At present, China's sports watch companies export directly or via trading companies to buyers all over the world, with major market focus on the United States and Europe.

Industry overview

China is home to approximately 500 registered watch suppliers and exporters, and is the world's top producer of watches in terms of volume. More than 80 percent of these suppliers are concentrated in Guangdong province, and are mostly invested by Hong Kong companies. Other factories are located in Beijing, Shanghai, Fujian, Guangxi and Zhejiang provinces. The majority of these suppliers are assemblers, not manufacturers, allowing them plenty of scope to produce any type of watch requested by a buyer. Although the suppliers in this report can offer any type of watch, production focus is on sports watches.

Suppliers mostly manufacture only one or two components in-house, typically the digital movement or all of the plastic parts or metal cases, and most other parts are sourced primarily from local factories. All manufacturers have R&D teams that work directly with buyers and subcontractors in finalizing design and functions, and can ship directly to buyers or via trading companies.

The industry is poised for growth this year, after suffering a slight setback in early 2003 due to SARS. Suppliers are building more factories to increase capacity in response to fast market growth in the United States, China's biggest export market. More export destinations are being explored, especially in Europe.

A recent study on the watch retail market in the United States shows sales of sports watches grew to US$1.7 billion in 2003 and is projected to increase to US$2 billion by 2008.

Most China sports watch suppliers manufacture under OEM contracts, although some have developed their own brands. Major customers include sports labels adidas and Speedo; brands Carlex, Western and Nobel; and retailers Wal-Mart, CIPI, Publisistem and DS-Max. Some of the companies in this report produce promotional sports watches for Coca-Cola, Pepsi and Disney.

Although 60 to 80 percent of export business is generated by OEM orders, more companies are investing in R&D and design technology in an effort to jump from low-end to midrange and high-end manufacture. In 2003, the suppliers profiled in this report invested an average of 4 percent of revenue into R&D.

The main R&D focus is on improving designs of cases, dials and straps. Very few makers in China can manufacture quartz analog movements, but assembling digital movements is almost a standard production process in most watch factories.

Samples of supplier profile

Everbright Watch & Clock (Shenzhen) Co. Ltd
Established in 1991, Everbright Watch & Clock (Shenzhen) Co. Ltd is a member of the China Everbright Group, a state-owned enterprise with a publicly listed holding company in Hong Kong.

Exports account for 20 percent of Everbright's sales, with sports watches making up 31 percent of this. Watches are shipped mostly to the United States, South America, Europe, Turkey, the Middle East, Taiwan and Japan.

The company designs and assembles midrange to high-end watches, with some carrying the Everbright brand — one of four timepiece brands given the China Top Product distinction in 2002. The company launched the EBOHR brand last year, which will eventually replace the Everbright label.

All parts and components are outsourced from ISO 9001:2000- certified factories in Guangdong province. In 1999, the United Kingdom Accreditation Service certified Everbright's quality management systems as compliant with ISO 9001:2000. The company has been using ERP software for almost two years.

Everbright is also an authorized distributor of Adidas sports watches in China and a licensed sports watch manufacturer for Adidas in Hong Kong.

Products
The majority of Everbright's sports watches have stainless-steel cases and bands. These watches have day/date indicators, moon-phase displays and 5 to 10ATM water resistance. Everbright offers digital sports watches, but only analog models are exported. However, the company can export digital sports watches upon buyers' requests.

The 10-person R&D team uses CAD systems, Pro/E, CorelDRAW and Photoshop design software in developing new products. It usually takes the team six months from conceptualization to new-design release.

One of the company's goals for 2004 is to strengthen its domestically well known brand in the international timepiece market, based on its strong design capability and the China Top Product distinction.

Everbright exported approximately 85,000 sports watches in 2003 against a monthly in-house assembling capacity of 150,000. The company participates in BaselWorld and the Hong Kong Watch & Clock Fair to create brand awareness and secure export opportunities.

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