Strong demand for high-definition, digital home entertainment products helps China exporters survive tough economy; most expect robust sales growth

Strong demand for high-definition, digital home entertainment products helps China exporters survive tough economy; most expect robust sales growth

China Sourcing Report: Home Entertainment covers suppliers of home video, home

audio and game controllers

HONG KONG, May 19 /PRNewswire-Asia-FirstCall/ -- Despite the global economic slowdown, most China home entertainment product suppliers expect sales to grow this year, according to Global Sources' (NASDAQ:GSOL) China Sourcing Report: Home Entertainment ( http://www.chinasourcingreports.com/home-entertainment ).

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Among surveyed suppliers of home entertainment products:

-- 47 percent forecast sales growth of more than 20 percent;
-- 21 percent expect growth of 10 to 20 percent;
-- 11 percent predict sales to increase by less than 10 percent; and
-- 21 percent anticipate flat or declining sales.

"Global demand for high-definition and digital home entertainment products, coupled with a drop in the cost of LCD and plasma displays, are spurring growth in the sector," said Spenser Au, Publisher of the Report.

"Even as the economy slows, consumers are rapidly adopting new digital entertainment technologies. In the United States, HDTV-equipped homes doubled in 2008 to 23 percent of all households. HDTV is also expected to take off in Europe from today's 59 million HDTV homes to 116 million in 2010 and over 200 million by 2018. This is one reason suppliers are so optimistic about the EU market, with 63 percent ranking it as their top export destination."

Prices set to drop amid fierce price competition

Au said: "Sixty-seven percent of suppliers we surveyed expect price competition to be the biggest challenge they face in the coming months. In order to gain or maintain market share, 79 percent are planning to maintain or decrease prices.

"A number of suppliers are also producing or planning to produce their own LCD modules. This is backed by strong support from the China government, which listed LCD module production as a key concern in its Eleventh Five-Year Plan."

Suppliers are also working in other areas to increase competitiveness with:

-- 32 percent widening their product ranges;
-- 26 percent improving operating efficiency; and
-- 26 percent working to reduce production costs.

The remaining 16 percent of suppliers cited decreasing product defects and shortening design/development time as their main strategies to win more orders.

Au concluded: "As competition increases along with demand, it is a buyers' market in the home entertainment sector. Companies buying from the region can expect to find more value-for-the-money products, all at lower prices than they paid last year."

Supplier profiles, price forecasts and new home entertainment product export models

The 94-page China Sourcing Report: Home Entertainment provides detailed profiles of 19 suppliers with verified manufacturing and export credentials and contact details of an additional 37 exporters. It also includes a Product Gallery featuring 50 of the most popular export models, with key specifications and full-color pictures.

The Report's surveys, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.

Specialized Global Sources websites, face-to-face events, trade magazines and research reports

China Sourcing Reports are part of Global Sources' sourcing and product information services. These include Global Sources Online ( http://www.globalsources.com/ ), China Sourcing Fairs ( http://www.chinasourcingfair.com/ ) and Global Sources monthly magazines. For more information about Global Sources' products and services that connect quality buyers with verified suppliers, visit http://corporate.globalsources.com/ .

The China Sourcing Report: Home Entertainment is available for purchase at http://www.chinasourcingreports.com/home-entertainment .

Free information about Greater China home theater suppliers and products can be found at http://www.chinasuppliers.globalsources.com/china- suppliers/Home-Theater.htm .

About Global Sources

Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business uses English-language media to facilitate trade from Greater China to the world. The other business segment utilizes Chinese-language media to enable companies to sell to, and within Greater China.

The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 803,000 active buyers source more profitably from complex overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in over 240 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 4.3 million products and more than 196,000 suppliers annually through 14 online marketplaces, 13 monthly magazines, over 100 sourcing research reports and 12 specialized trade shows which run 29 times a year across 10 cities.

Suppliers receive more than 67 million sales leads annually from buyers through Global Sources Online ( http://www.globalsources.com/ ) alone.

Global Sources has been facilitating global trade for 38 years. Global Sources' network covers more than 69 cities worldwide. In mainland China, Global Sources has over 2,500 team members in more than 44 locations, and a community of over 1 million registered online users and magazine readers for Chinese-language media.

Global Sources Press Contact in Asia
Camellia So
Tel: +852-2555-5021
Email: cso@globalsources.com

Global Sources Press Contact in U.S.
James W.W. Strachan
Tel: +1-480-664-8309
Email: strachan@globalsources.com

Global Sources Investor Contact in Asia
Investor Relations Department
Tel: +852-2555-4777
Email: investor@globalsources.com

Global Sources Investor Contact in U.S.
Kirsten Chapman & Timothy Dien
Lippert/Heilshorn & Associates, Inc.
Tel: +1-415-433-3777
Email: tdien@lhai.com

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PR Newswire Photo Desk, photodesk@prnewswire.com
Source: Global Sources

CONTACT: Press contact in Asia: Camellia So, +852-2555-5021,
cso@globalsources.com; Press contact in U.S.: James W.W. Strachan of Global
Sources, +1-480-664-8309, strachan@globalsources.com; Investor contact in
Asia: IR Department of Global Sources, +852-2555-4777,
investor@globalsources.com; Investor Contact in U.S.: Kirsten Chapman &
Timothy Dien of Lippert-Heilshorn & Associates, Inc., +1-415-433-3777,
tdien@lhai.com, for Global Sources

Web site: http://www.chinasourcingreports.com/home-entertainment
http://www.globalsources.com/
http://www.chinasourcingfair.com/
http://corporate.globalsources.com/
http://www.chinasourcingreports.com/home-entertainment

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