Car DVD Players. Essential sourcing intelligence for buyers

Transcription

1 Essential sourcing intelligence for buyers China manufacturer profiles Detailed profiles of 40 suppliers with verified manufacturing and export credentials Product & price trends Prices and specifications of 152 top-selling export products June 2008 US$495 Guangdong Car DVD player supply center Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D wwwchinasourcingreportscom

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3 EXECUTIVE SUMMARY CAR DVD PLAYERS Supplier capability in China Executive Summary The booming global market for car multimedia systems has propelled China s car DVD player industry to prominence In 2007, China suppliers produced about 8 million car DVD players on sales of approximately $1 billion Export sales are expected to grow by 10 to 20 percent on average in 2008 The US used to be the main export destination for aftermarket car DVD players from China suppliers However, the weakness in the US economy has made it a less attractive export market, a situation aggravated by the continued appreciation of the yuan against the US dollar Hence, many suppliers are shifting their attention to other export markets Suppliers are also starting to realize the huge sales potential in the domestic market China s car and commercial vehicle production grew 22 percent year-on-year in 2007, making the country the third biggest car maker globally, behind the US and Japan This presents an opportunity for car DVD player suppliers looking to expand their market share, particularly for OBM business However, with companies of varying backgrounds rushing to jump onto the car DVD player bandwagon, the industry may undergo consolidation Newer suppliers lacking the core technology and product differentiation to compete effectively will be pressured to exit the industry The remaining suppliers have to share the spoils of the aftermarket as the lucrative OEM segment is dominated by a few largescale companies The following are some of the key trends that we see in China s car DVD player industry: The severe competition will compel many makers to slash prices by up to 15 percent However, export quotes of low-end products, which have bottomed out, will likely increase in the next few months While more multifunction products will continue to be released, the integration of a complete car system is a major R&D focus for many suppliers Although the US will remain one of the biggest export destinations, more suppliers will increase their shipments to the EU and explore emerging markets in the Middle East, Asia and Africa Due to the low capacity utilization rate for the product line, most makers will not pursue capacity expansion plans in 2008 This report covers the five major types of car DVD players made in China: in-dash, sun visor, flip down, headrest and car DVD players without monitors In-dash models are the most popular product line, accounting for more than 50 percent of exports from China Flip down models and car DVD players without monitors each take up about 10 to 15 percent of export share, while sun visor and headrest types each represent 5 to 10 percent The Industry Overview section in this report tracks the development of China s car DVD player industry and details the major factors driving its growth It also discusses issues facing suppliers, the industry composition and the general product development direction The majority of China suppliers are located in Shenzhen, Guangdong province to take advantage of the city s mature component supply chain for LCD panels, DVD decoder ICs and solutions The Products & Prices section details the features of the different types of car DVD players offered by China suppliers, the key materials used and factors affecting pricing In this report 28 in-depth company profiles 12 short company profiles 152 top-selling export products Supplier demographics Supplier survey Industry statistics and charts METHODOLOGY To produce this report, Global Sources surveyed a wide range of suppliers Rather than focus simply on high-profile makers, we compiled a representative sample of large, midsize and emerging manufacturers All profiled companies are export-oriented professional suppliers that may or may not be clients of Global Sources The selection of suppliers is designed to reflect the composition of the industry in China in terms of geographic spread, business type and company ownership For each company profile, our research teams interviewed senior executives and export managers who discussed their recent performance and provided price, R&D, production and export forecasts for the next 12 months The interviews were done in-person, by phone or In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including their production and export statistics, and a breakdown of exports by product type and market Our production checklist details the product-specific manufacturing capabilities of each supplier All suppliers participated in a survey designed to provide insight into product and price trends, and challenges facing the industry in the next 12 months All survey questions are single choice Results were calculated based on the actual number of valid responses to each question wwwchinasourcingreportscom

4 CONTENTS CONTENTS INDUSTRY OVERVIEW 7 Supplier summary Production & exports Main production center Suppliers by location Products & prices 10 Top 10 exporters Price guides Export statistics Supplier survey 14 Export prices, export capability, price increase, export sales, challenges, target markets, product trends, capacity expansion SUPPLIER PROFILES 17 Supplier locations Industry composition Top 20 exporters Supplier matrix Production checklist Supplier profiles PRODUCT GALLERY 63 Top-selling export products CONTACT DETAILS 93 Copyright 2008 Trade Media Limited All rights reserved Reproduction in whole or in part in any form or medium without the expressed, written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited Published by Publishers Representatives Limited (on behalf of Trade Media Limited) PO Box 219 GT, Strathvale House, North Church Street, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong Printed in Singapore ISBN Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof) All product images are provided by the companies interviewed and are for reference purposes only Those product images featuring products with trademarks, brand names or logos are not intended for sale Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party China Sourcing Reports

5 InDUSTRY Overview Industry overview China s car electronics market has experienced two growth spurts since the turn of the century Once was during 2001 to 2002, when its total sales of car electronics reached $23 billion, following the country s WTO ascension The second period started from 2006, when the booming global market for car multimedia systems attracted many IT and consumer electronics manufacturers to the line By the end of 2007, China s overall sales of car electronics grew to $113 billion, according to China Electronic Components Association The supplier base also expanded rapidly to about 1,000 makers (including those that offered car GPS devices) Along with the second wave of growth, China s car DVD player industry rose to prominence While the product line is not tracked independently by any organization, industry estimates place the output of car DVD players in 2007 at 8 million units with sales of about $1 billion About 80 percent of this output is exported, though the ratio may be reduced in the coming months Industry drivers The Consumer Electronics Association reported that total sales of car electronics in the US alone exceeded $97 billion in 2007 More than half of that figure was accounted for by in-factory installation of equipment before the cars were actually sold Postpurchase (or what is generally referred to as aftermarket ) in-car audio is the next biggest category, followed by GPS navigation systems, portable video players and security equipment designed to prevent car theft Since China s car DVD player industry tends to move in tandem with the fortunes of the global automobile industry, its growth depends heavily on the health of the three biggest markets: the US, Japan and China The US used to be the main export destination for aftermarket car DVD players from China suppliers However, due to the weakness in the US economy, that market has been shrinking since the second half of 2007 As such, many China suppliers have explored or are planning to explore emerging overseas markets like Russia, the Middle East and South Africa China makers are also gradually turning their attention to the booming domestic market The country produced 88 million cars and commercial vehicles in 2007 on the back of a strong 22 percent year-over-year growth, according to data from the International Organization of Motor Vehicle Manufacturers (OICA), placing the country third behind the US and Japan OICA projects China s output to exceed 10 million units in 2008 Rather than rely on export sales, China makers are starting to emphasize their OBM business in the domestic market Many interviewed suppliers have indicated that they will adjust the ratio of their export/domestic sales, in favor of the latter Some companies may stop focusing on export markets altogether due to reduced profitability and will turn to contract manufacturing for other suppliers instead Challenges abound Although the industry presents huge opportunities for China s car DVD player suppliers, there are a number of hurdles along the way Many makers believe that the industry will reach a turning point in 2009 Due to the low barrier to entry and decent return on investments, some companies have jumped onto the car DVD player bandwagon despite lacking the core technology and product differentiation to compete effectively With suppliers of varying backgrounds rushing to enter the industry, the market is starting to descend into a state of disarray Consequently, newer suppliers focusing on the entry-level segment will be pressured to exit the industry Furthermore, the lucrative OEM Supplier summary Suppliers surveyed 40 Export sales $4505mn Export ratio 81% OEM business 61% Capacity utilized 51% Annual R&D spending $366mn Full-time employees 19,071 Data: All surveyed suppliers business (ie in-factory installations) is dominated by a handful of tierone makers Hence, the remaining suppliers have to share the spoils of the aftermarket, a situation that could prove daunting for fringe players A more tricky challenge for China suppliers is the acquisition of intellectual property rights (IPR) Makers need to secure six kinds of patents for 3C, 6C, MP3, DTS, Dolby and MPEG-LA in order to export to most overseas markets Acquiring these patents adds about $20 to the cost of each car DVD player, a significant amount for suppliers that are engaged primarily in price competition Except for tier one and established makers, most China suppliers do not foot the IPR fees themselves Instead, most of them will negotiate with buyers to assume the additional cost In addition, the value of the yuan has continued to rise and hit record highs against the US dollar, making it less attractive for China suppliers to focus on exports As a counter measure, China makers are offering export quotes with a shorter validity period for US dollar-denominated orders In non-us markets, suppliers are switching to euro, pound or other relatively stable currencies, instead of pegging their prices to the US dollar On the bright side, the stronger yuan allows China makers to reduce their component sourcing cost as many key components, including ICs and LCD panels, are purchased from overseas suppliers Furthermore, the shortage of small-size LCD panels, which troubled car DVD makers in 2007, is likely to wwwchinasourcingreportscom 7

6 Supplier profiles Anhui Garments Imp & Exp Co Ltd Vehicles Dept Profile Company facts Year established 1985 Business type Trading company Company ownership Mainland China-owned Head office location Hefei (Anhui) No of subcontracting factories 1 Factory location(s) Shenzhen (Guangdong) No of full-time employees 200 Annual export sales (all products) $150mn Annual R&D spending $100mn ISO certification Sales & output: Car DVD players Annual export sales $120mn Share of total export sales 80% Average monthly exports 8,000 units OEM % of exports 80% ODM % of exports 10% OBM % of exports 10% Services provided Sample making Export documentation Shipping After sales No Capability Production checklist In-house R&D/design staff 20 Production line QC staff 10 In-house packaging In-house assembly Dedicated capacity Exports by product In-dash car DVD players 65% Sun visor car DVD players 10% Flip down car DVD players 5% Headrest car DVD players 10% Car DVD players without monitor 10% Exports by market North America 30% European Union 30% Europe (non-eu) 10% Asia/Pacific 20% Middle East 5% Other 5% Outlook Export prices Increase Export price increase 5-10% Export sales Increase 10-20% Target market European Union Production capacity Increase 20-50% Major challenge Design copying/piracy Export capability Improve operating efficiency Major product trend Add-on functions Popular export models In-dash car DVD player Model DVD-9000 Minimum order 50 unit Packaging type Carton Delivery time 25 days Indicated price $29500 Description: Touchscreen display; VCD, MP3, CD, WMA, JPEG, MP4 supported formats; GPS; 2-DIN In-dash car DVD player Model DVD-3600 Minimum order 100 units Packaging type Carton Delivery time 25 days Indicated price $13000 Description: 35in TFT display; VCD, MP3, CD, WMA, JPEG, MP4 supported formats; ISO/DIN connector 26 China Sourcing Reports

7 Supplier profiles Coagent Electronic S&T Co Ltd Profile Company facts Year established 1998 Business type Manufacturer Company ownership Mainland China-owned Head office location Foshan (Guangdong) Factory location(s) Foshan (Guangdong) Total factory area 180,000sqm No of full-time employees 2,000 Annual sales (all products) $714mn Annual R&D spending ISO certification Sales & output: Car DVD players Annual sales $678mn Share of total sales 95% Annual export sales $214mn Total monthly capacity 1,000,000 units Average monthly output Capacity utilized Average monthly exports Export ratio OEM % of exports 50% ODM % of exports OBM % of exports 50% Information not disclosed Outlook Export prices Increase Export price increase Less than 5% Export sales Increase more than 20% Target market European Union Production capacity No increase Major challenge Price competition Export capability Reduce production cost Major product trend Add-on functions Popular export models Capability Production checklist R&D/design staff 200 QC staff Mold making in-house SMT in-house PCB subassembly in-house Aging room Final assembly in-house Exports by product In-dash car DVD players 100% Sun visor car DVD players Flip down car DVD players Headrest car DVD players Car DVD players without monitor Exports by market North America 5% European Union 5% Europe (non-eu) 20% Asia/Pacific 40% Middle East 30% Other In-dash car DVD player Model CA3025 Minimum order 300 units Packaging type Box Delivery time 15 days Indicated price Description: 8in touchscreen TFT LCD, 480x234-pixel resolution; VCD, CD, MP3, MP4, CD-R, WMA, JPEG supported formats; NTSC/PAL/SECAM; Bluetooth A2DP, OBD, ipod ready, double SD card slot, USB port; EQ mode display In-dash car DVD player Model CA3033G Minimum order 300 units Packaging type Carton Delivery time 15 days Indicated price Description: VCD, CD, MP3, MP4, CD-R, WMA, JPEG supported formats; NTSC/ PAL/SECAM; Bluetooth A2DP, OBD, ipod ready, double SD card slot, USB port; EQ mode display Information not disclosed wwwchinasourcingreportscom 27

8 PRODUCT GALLERY PRODUCT GALLERY Car DVD players without monitor Image file name: BK9017 Image file name: PDV998 Image file name: TS3403P8 Bookon (profile page 55) Model: BK9017 Minimum order: 100 units Packaging type: Colored box Delivery time: 15 days Indicated price: $5500 Description: CD, CD-R, MP3, VCD, MP4 supported formats; AM/FM/MPX receiver, USB port, MMC/SD card slot; electronic anti-shock system; card-size remote control; 178x178x50mm; 168kg Davie (profile page 28) Model: PDV998 Minimum order: 500 units Packaging type: Carton Delivery time: 30 days Indicated price: Description: MP4, VCD, CD, CD-R, MP3, WMA, JPEG, DivX supported formats; 12 AM/18 FM preset stations, Bluetooth, GPS, ipod ready, MMC/SD card slot; slim infrared remote control Goodluck Electronic (profile page 31) Model: TS3403P8 Minimum order: 1 sample Packaging type: Carton Delivery time: 20 days Indicated price: $5300 Description: MP4, MP3, VCD, CD supported formats; RCA output; 45W, 50W output power; ESP system; super interference-proof electronic tuning system; 30 station auto storage; USB port, SD card slot; clock; remote control Image file name: KY-9826 Image file name: CA-9988DVD Image file name: HundredPercent_ CLD-DVD-6 HundredPercent (profile page 57) Model: CLD-DVD-6 Minimum order: 1 unit Packaging type: Gift box Delivery time: 3 days Indicated price: $6000 Description: LED display; MP4, VCD, MP3, CD, CD-RW supported formats; four RCA line-out; AM/FM radio, USB port, MMC/SD card slot; remote control Kingzer (profile page 33) Model: KY-9826 Minimum order: 100 units Packaging type: Gift box Delivery time: 21 days Indicated price: $8800 Description: MPEG-1, MPEG-2, MP4, DivX, Xvid, MP3, WMA, AAC, WA/VE, CD-DA, Nero Digital, JPEG, BMP, GIF supported formats; composite RCA, S-Video, VGA; AM/FM radio; HDD file system; 25in IDE HDD, supports up to 250GB Shenzhen Firstop (profile page 37) Model: CA-9988DVD Minimum order: 100 units Packaging type: Colored box Delivery time: 10 days Indicated price: $4800 Description: LCD, 16:9 aspect ratio; DVD-R, VCD, CD, CD-R, CD-RW, MP3, MP4, DivX supported formats; NTSC/PAL; 4ch audio output; advanced ESP; USB port, SD card slot Information not disclosed wwwchinasourcingreportscom 63

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