China's fashion accessories industry is hopeful of an exports rebound in 2009. Outbound shipments in nearly all product lines contracted in 2008, due mainly to the global economic crunch. But higher VAT rebates, preferential government policies and more stable manufacturing costs are leading companies to forecast moderate growth.

Some hosiery makers are even projecting sales to triple in 2009. Apart from the factors mentioned above, quota elimination is bringing rise to a more positive outlook for the months ahead.

The following are some of the key trends and developments we see in China's fashion accessories industry:

• To minimize losses and utilize idle production lines, many companies have turned to the domestic market. But bigger profits can still be gained in the export arena. In addition, the majority of suppliers do not have an established local brand. As a result, they are not likely to pursue long-term partnerships with domestic retailers in the months ahead.
• The US and the EU will remain the major export destinations. Insufficient knowledge of trading policies at emerging markets such as South America and Africa are preventing companies from expanding fully into those regions.
• Makers continue to adapt to buyers' changing sourcing habits. In addition, they are implementing measures aimed at providing more flexible client services such as reduced MOQ and waived tooling costs.
• Suppliers are upgrading their equipment to improve efficiency. Advanced and imported units such as Stäubli jacquard weaving machines from Switzerland can also enable them to offer value-added designs. Some are taking steps to vertically integrate as well, including setting up wholly owned silkworm breeding centers.

China suppliers produce belts and accessories, sunglasses, optical frames, reading glasses, gloves, hats, caps, hosiery and neckwear. These are also the scope of this report.

Each product category has its own section with details on the features and prices of low-end, midrange and highend models.

The manufacturing and QC processes are discussed for some of the key products as well.

The section also elaborates on the industry composition, highlighting key characteristics of the different types of companies.

The Industry Overview illustrates the effects of the current financial crisis on suppliers' export sales and growth projections. Further, it explains the measures makers are taking to minimize losses.

This section also provides a general review of the major export and manufacturing hubs for each product category.

The fashion accessories export manufacturing industry in China is comprised of small and midsize companies, and about 50 percent have direct export capability.

At least 80 percent of all suppliers are private locally owned companies, less than one-fifth have foreign participation and the rest are publicly listed or SOEs.

The provinces of Zhejiang, Jiangsu and Fujian are the main manufacturing centers for fashion accessories.

Zhejiang contributes 37 percent of national exports in the line, while Jiangsu generates 13 percent. Fujian accounts for 4 percent of overseas sales.

Reflecting that structure, 79 percent of suppliers profiled for this report are private local businesses.

Roughly two-thirds of featured companies come from Zhejiang, 13 percent from Jiangsu and 10 percent from Fujian.