- China's real GDP grew by 10.4% in 2010, compared to 9.1% in 2009.
- For 2011, China's GDP is expected to continue growing at a healthy pace. Early estimates indicate that China's GDP is expected to reach a growth of 9.2% for 2011. (Source: National Bureau of Statistics of China).
- Early estimates also indicate that in 2012, the Chinese economy is expected to achieve a GDP growth of 8.2%. (Source: The International Monetary Fund).
- Improved economic conditions combined with stronger entrepreneur confidence will help sustain operators within the footwear manufacturing industry including sports shoes.
Economic Conditions in China Relative to Global Conditions
- China's 2011 GDP growth rate of 9.2% outperforms other major global economies such as the United States (1.8%), the United Kingdom (0.9%) and India (7.4%). (Source: The International Monetary Fund).
- Going forward, China's economy is likely to maintain its position as the fastest growing economy in the world. China's economic growth of 8.2% in 2012 is expected to outperform its peers. (Source: The International Monetary Fund).
Outlook of OBM and Contract Manufacturers
- The outlook of OBM and contract manufacturers in China is correlated to the general economic conditions in China as well as global economic conditions.
- OBM that invest significantly in marketing and promotions would be in a stronger position to increase brand awareness and high brand equity would enable such manufacturers to command higher pricing for its products.
- Contract manufacturers that have their own in-house design capabilities are able to provide value-added services to brand owners.