Makers are extending delivery times to counter the effects of a weakening workforce.
China suppliers of promotional keychains are streamlining operations to cope with the current labor shortage and consequently respond to resurgent demand.
In the first half of 2010, many manufacturers experienced higher export sales. Some enterprises even recorded significant value and volume increases of 20 and 24 to 30 percent YoY. Previously, buyers would purchase once every several months, but repeat orders within 30 days are now becoming common.
To sustain the positive outlook and spur business further, makers are finding ways to minimize sample and mass production periods.
This is because the staff shortage affecting China’s manufacturing industries has forced many promotional keychain suppliers to extend delivery times or even reject high-volume orders. The line continues to be labor-intensive.
To address the issue, Acever Gifts Industry (Shenzhen) Co. Ltd has begun implementing dual shifts for its artists to allow immediate resolution of problems.
The working hours in Acever’s factory are likewise being arranged to ensure constant output.
Low manpower is also prompting makers to increase salaries between 20 and 30 percent, although there is still difficulty in keeping workforces at optimal levels.
In response, China enterprises are raising capital expenditure. Metal keychains specialists, for example, are procuring more punching and polishing machines, reducing the required number of technicians while boosting output. Existing staff members are given training that raises efficiency.
Further, companies are enhancing R&D capability by identifying and preparing designs for upcoming trends. Inspiration is taken from sporting events such as the World Cup and car launches, holidays, and popular movies and TV shows. Physical samples are created after buyer selection and confirmation. Customization is offered according to the clients’ needs and budget. To minimize costs, single-sided printing and solid-hue laser engraving can be used instead of double-faced and multicolor pattern application.
Suppliers are also subcontracting electroplating, printing, assembly and packaging to workshops or local farmers. In-house QC inspectors conduct on-site monitoring.
Meanwhile, with the People’s Bank of China, the country’s central bank, implementing currency reforms starting June 19, makers are anticipating the yuan to appreciate. This could weaken suppliers’ price advantage over competitors based in Vietnam, Malaysia and Thailand by the second half of 2010 or early 2011. The exchange rate between the yuan and the US dollar went unchanged for about 23 months due to the global financial crisis.
Range of models
Promotional keychains from China come in various materials. Metal bears the highest cost, followed by ABS, acrylic and soft PVC. EVA requires the least outlay. Selection is dependent on the design’s patterns and colors. Each option is suited for a specific product range. Soft PVC models, for example, display details better than zinc alloy. The latter, however, yields more durable logos.
Upscale metal pieces are made of zinc alloy, stainless steel, brass, copper, iron or aluminum. They are usually embellished with plastic, silicone, leather and rhinestone parts while utilizing multicolor painting. For electroplating and polishing, attention is paid even to small areas such as edges and joints. Prices are $2.90 to $4.
Midrange releases come in zinc alloy or stainless steel, and boast the same accessories and finishes as more-expensive versions. These go for $0.80 to $2.80.
Low-end metal pieces are typically made of iron and aluminum, although zinc alloy is an option. Models have basic shapes and employ simple electroplating and polishing. Only solid colors are applied. Logos are added via laser engraving. Quotes can reach $0.70.
For plastic keychains, upscale products utilize ABS and polyresin. They bear 3D designs that entail high molding costs and inhibit feasibility for low-volume orders. Prices top $0.80.
Midrange pieces are made of soft PVC, polyresin and acrylic in a thickness of 3 to 6mm. They can have multiple colors and single- or double-faced configurations, and come in various shapes. Quotes are $0.25 to $0.80.
EVA, polyresin and soft PVC are employed for low-end plastic models, although most releases are in recycled PVC that does not display colors as well as virgin material. The thickness is less than 3mm. Accuracy for color and print application is not high. Such products are priced at a maximum of $0.20.
A number of China suppliers are focusing on novelty designs and multifunction versions to boost commercial viability. At Acever, output of food-shaped and solar flashlight keychains is growing.
Ningbo Goldensource Import & Export Co. Ltd has developed box-contoured pieces that hold a mirror or a lens cleaning cloth. Other makers offer models that can also be used as breathalyzers and calculators. Bottle openers and LEDs are other popular inclusions.
Prices of multifunction keychains are primarily determined by the extra features. The housing and key ring play only a secondary role. Such versions are often exported in smaller quantities but with a higher total value than basic types.
On demand, makers in China offer promotional keychains that comply with international environmental requirements. Acever’s PVC models are 6P-free and meet EN 71 standards.
At Guangdong province-based King Hong Metal & Plastic Product Co. Ltd, metal pieces do not contain nickel. For more on “Efforts to mitigate challenges”.
