Fishing Equipment

China's cookware manufacturing industry is grappling with soaring prices for both stainless steel and aluminum.

These rising material costs have resulted in a dramatic drop in export growth rates. While exports rose by 20% in 2003, they slowed to a mere 6% in 2004.

The incisive analysis in this report will help you evaluate what producers are doing to offset rising costs. It will also help you pre-qualify suppliers that best meet your needs.

Plus, you'll get supplier profiles and a detailed industry overview — including product developments, price forecasts and more — covering issues that will impact your 2005 sourcing decisions.

What you'll get


In-depth profiles of 15 leading suppliers in mainland China and Taiwan, including details on their manufacturing capabilities, R&D plans, new product developments and pricing strategies. This impartial information is the result of in-person factory tours and interviews with senior managers and is available nowhere else

Short profiles of 63 additional fishing equipment suppliers, highlighting key statistics such as main export markets, production capacities, export volumes, and OEM/ODM as a percentage of exports

A full-color product gallery featuring 106 products sorted by product type — fishing rods, reels, lures and other tackle — for easy comparison

The results of Global Sources' latest supplier survey, forecasting price, product, production and R&D trends for the next 12 months

This report covers: fishing rods, fishing reels, lures, and other tackle including hooks, nets, floaters and sinkers

How you'll benefit

Get a ground-level view of the different manufacturing processes, quality control checks and testing procedures used by various suppliers. This is essential information to pre-qualify new suppliers and benchmark current ones

Obtain insights into producers' raw-material sourcing strategies and see how these impact the quality and pricing you're offered

Examine if increasing production costs will push export prices up in 2005 or if manufacturers will be able to hold prices steady

Benefit from quick-to-use summary listings covering all featured suppliers, with easily comparable statistics, as well as verified contact details

Executive summary

China is the leading producer and exporter of basic fishing equipment, particularly rods, reels and lures. The country exported 61 million fishing rods in 2004, a 10 percent increase from the year before. Reel exports grew 14 percent to reach 47 million units in 2004.

In terms of value, the country's outbound shipments of fishing equipment were US$447 million, 24 percent higher than the previous year. Exports of fishing rods climbed 21 percent to US$189 million in 2004. Other fishing tackle including lures, were at US$124 million, an increase of 7.8 percent relative to the previous year. Exports of fishing reels were valued at US$100 million, soaring 31 percent from 2003 exports.

Total exports of fishing equipment are expected to rise by about 20 to 25 percent in 2005, as demand from major markets continues to grow, and makers enhance the quality of their products.

The following are some of the major trends we see in China's fishing equipment export industry.

• While rods, lures and reels for amateur use will continue to dominate exports, a few large makers will boost output and exports of professional-use fishing tackle, mainly by increasing focus on R&D and design. Lure makers, in particular, will release more models with realistic movements and features. China is already strong in lure production.

• A large number of makers will expand their production capacities as a result of increasing demand from overseas markets, especially the United States and the European Union.

• Most suppliers will expand cost reduction measures in response to higher material and labor costs. This includes proper management of raw materials to minimize wastage, as well as the use of alternative materials where feasible.

• Many manufacturers will work closely with other fishing tackle suppliers in an effort to broaden their product ranges. Almost all suppliers in China currently focus production on one or two types of fishing equipment, and practically none of them can offer a complete set of fishing equipment as yet.

Since rods, reels, lures and hooks dominate China's output and exports of fishing equipment, this report focuses on these key products. It also profiles some makers of floaters, sinkers, nets and lines.

The Products & Prices section includes the latest design trends and price references for low-end, midrange and high-end models in each of the key export categories. Makers' R&D focus and design capabilities are discussed in the R&D module.

The Manufacturing section describes the main production processes and standard QC tests for fishing rods, reels, lures and hooks in China. The Materials & Components section provides information on the sources of raw materials and parts.

The fishing equipment industry in China comprises about 800 makers, most of which are small and midsize companies that produce low-end and midrange products. Reflecting the industry structure, the majority of makers in this report are locally owned. About 11 percent are foreign-invested or joint-ventures.

Industry overview

China accounts for most of the world's output of low-end and midrange fishing rods, reels and lures for amateur use. The country is particularly strong in the manufacture of lures, with some suppliers even offering high-end models for professional use. But it still lags behind in the production of high-end rods and reels, as most suppliers lack the technological capability and design expertise required to manufacture these products. Makers also produce other tackle such as hooks, nets, floaters and lines, but the majority of these too are basic products.

There are only a few China makers producing rods for professional anglers, and even fewer making high-end reels. These are mostly large companies with adequate resources to invest in advanced facilities and imported machinery.

They also understand the intricacies affecting the performance and quality of rods and reels, and are therefore capable of designing high-end products. Many of them will boost output of professional-use products in the next 12 months by increasing emphasis on R&D and design.

Besides this handful of large makers, buyers will find that the majority of rod and reel suppliers in China are small and midsize companies that lack R&D capability and do not have much product knowledge. However, these makers are quite proficient in producing basic tackle for amateur use and offer a wide variety of products in this segment.

The unavailability of quality raw materials domestically is one of the factors affecting the development of high-end rods and reels. Currently, almost all materials for high-end rods are imported from Taiwan, the United States and Europe, which increases overall production costs. This scenario is not expected to change in the near future.

Intense competition from foreign-invested makers is another factor hindering export growth of high-end rods and reels from local suppliers. China's strength in labor-intensive production has attracted overseas companies to set up facilities, mainly in the provinces of Shandong and Guangdong. Many of these are Taiwan-based makers that have shifted production to the mainland but still have their R&D facilities on the island. A few of them, such as Shimano, are also from Japan. With their strong R&D capability and advanced facilities, these makers dominate high-end exports from the country.

Although the presence of foreign companies is currently inhibiting product development in China, having their facilities in the country will help local makers improve their production technology and shift to upscale rod and reel production in the long run.

Most China manufacturers of hooks, nets and other tackle are also small and midsize companies, without the resources to upgrade production equipment and technology or to train workers to use them. A number of companies established in the mid 20th century are still using the same vintage machines. While products made on these machines are of export quality, they limit suppliers' capability to produce new products to some extent. They also reduce efficiency resulting in higher production costs.

Samples of supplier profile

Chuanhai Fishing Tackle Manufacturer Co. Ltd
Locally owned Chuanhai has been producing fishing lures since 2003. It offers spinners, spoons, spinnerbaits, metal jigs, jig heads and bionic fish baits.

More than 90 percent of the company's output is exported to Italy, the United States, Germany, Brazil, Argentina, Ukraine and the Netherlands. The maker's total annual sales in 2004 reached US$600,000, 100 percent higher than in 2003. OEM orders comprise 100 percent of exports.

Products
Chuanhai produces lures made of metal, plastic and lead. The company's midrange and low-end models dominate the product line.

Priced from US$0.36 to US$0.50, midrange lures are coated with lacquer and use locally sourced fishing hooks. The price difference between a low-end and a midrange lure depends on the raw material used and the packaging design. Low-end models are priced at about US$0.15 each.

High-end models are made of plastic or rubber. They are stamped with decorative patterns, coated with epoxy lacquer and attached with a VMC or Mustad fishing hook. The spinner and spoon are made of iron, ABS, rubber and PVC.

Manufacturing
About 120 workers carry out the assembly of parts and accessories, and the production of metal and plastic components at Chuanhai's 500sqm factory. Plastic injection, molding, die-casting and painting are subcontracted to local specialized factories.

During the Global Sources' visit, 30 workers were applying heat-transfer stickers to metal and plastic parts. Other lures are painted and then dried in an oven at 100ºC for an hour. The company's three ovens can accommodate more than 2,000 lures at one time.

At the assembly workshop, 30 workers put the lure components together. The workshop is equipped with a TB390 packing machine, an automatic impulse blister-sealing machine and two semi-automatic press pattern machines. At the end of the assembly area, two workers stick company logos on finished items.

In the final inspection, a QC worker attaches the lure to a fishing line and dips it in a pool of water, where it is kept for an hour during which the lure's rotary angle, flotation and action are tested. Another QC worker conducts a paint adhesion test to check how well the paint has bonded to the metal or plastic body.

Sample of product gallery

Rods Fishing Capital Model: 6.6' spinning combo Minimum order: 200 units Packaging type: Carton Delivery time: 45 days Indicated price: US$10.50 Description: Carbon fiber blank, wooden handle; 6.6 feet long; spinning reel; RD drag system; 1-way clutch; 0.28mm/190m line capacity; 30cm long; 5.5:1 gear ratio; aluminum spool and handle

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