Promotional shopping bags: Environment-friendly designs top R&D trend

Strengthening environmental consciousness in the main export markets is propelling the R&D efforts of China’s promotional items industry in the “green” direction.

Across various categories in the line, makers are adopting ecologically safe materials and manufacturing processes. Some cap suppliers, for instance, are exploring sustainable textiles in the development of breathable, moisture-absorbent and odor-resistant designs. Among these is soft, hypoallergenic, water-absorbent and anti- bacterial bamboo-charcoal fabric.

Similarly, more than 50 percent of bags are now being produced from recyclable materials such as nonwoven fabrics. Designs in bamboo fi ber are also available but cost 50 to 60 percent more.

In the keychain segment, nontoxic PVC is the material of choice for environment-friendly plastic models. Metal versions are fi nished via lead- and nickel-free electroplating methods.

In an effort to go green, many makers of electronic novelties are employing RoHS-compliant processes. To ensure conformity, they only use lead-free chips.

Almost all promotional item suppliers, regardless of size, offer environment-friendly models. Large enterprises, however, are the ones actively engaged in green manufacturing, encouraged by the stricter requirements of their clientele. Compared with small makers, they also have greater purchasing capability that enables cost-effective sourcing of ecologically safe components.

Mutifunctionality is another important R&D direction in the promotional items industry. An estimated 80 percent of electronic premiums suppliers consider this critical in product development.

In the keychain category, a USB hub, fl ash drive, LED torch, emergency charger, digital photo frame, voice recorder, laser pointer and media player are among features combined to develop more appealing designs. Nonelectronic models may have a compass, carabiner, knife and small mechanical devices.

The need for wider margins has spurred this trend. In general, promotional items with multiple functions provide greater profi t potential as basic designs tend to be easily copied, resulting in a price war.

The markup always exceeds the outlay inherent in boosting the number of features. Incorporating an extra gadget in a tool kit, for instance, adds no more than $0.50 to the expenditure but raises the price by up to $2.

The cost of adding functions depends on the diffi culty of accommodating the new component. These include modifying the molds, materials, parts and procedures.

Novelty appearance continues to be a trend for China-made premiums, especially in bags, umbrellas, luggage tags, bar mats, T-shirts, caps and other categories where combining functions is a challenge. For suppliers in these segments, revamping product shape and color is the best option to revive buyer interest.

In line with this, several bag makers have launched products resembling skirts and books. Umbrella manufacturers released double-layer models. Featuring 16 ribs, these new designs are said to be more durable and can withstand stormy weather. Towel and T-shirt suppliers, meanwhile, are adopting packaging that allows compressing the products into various shapes.

The cost of developing a new design depends on the materials, crafts and technical specifications involved. A simple pattern for casting the silicone housing of a USB flash drive, for instance, may require less than $500. In contrast, a complex mold for an ABS emergency charger casing can cost $6,000 to $30,000.

Due to high financial requirement, most manufacturers, except those with foreign investors, seldom release in-house designs with unconventional shapes. Complicated molds are generally only developed on request.

Unlike changing shapes, modifying the product’s color is not costly. Because of this, many suppliers are employing the technique to innovate their products. This is particularly true in promotional pens, boxes and items with constructions that are not easy to alter.

More manufacturers of promotional items are steering their R&D efforts toward upscale designs amid cutthroatcompetition in the low end. The industry’s low entry barrier has lured many newcomers, creating a price war.

Most large companies moving upscale are doing so because their high-cost operations cannot be sustained by narrow margins from decreasing orders of inexpensive models.

Small suppliers moving in the same direction, meanwhile, are discouraged from continuing their low-end focus by their limited production capacity. Not being able to handle very large orders is prompting them to offer pieces with better profit potential.

High-end promotional items include environment-friendly, multifunction and novelty designs. Additionally, releases boast better quality and performance .

This article "Promotional shopping bags: Environment-friendly designs top R&D trend" is originally posted in Global Sources.

Ningbo Wantai Import and Export Corp.
Shangyu Tengxin Umbrella Co. Ltd
Wenzhou Success Group Co. Ltd
Xiamen Xinyuanmao Umbrella Co. Ltd