Part one of this two-part series presents the city’s strengths as a gift packaging production hub.
Dongguan’s strategic location, established transportation and logistics network, robust supply chain and strong manpower resource are propelling the area to the forefront of mainland China’s gift packaging industry. These advantages enable companies in this city in Guangdong province to meet buyers’ specifications, and offer competitive prices and short delivery time.
The area’s proximity to Shenzhen, Guangzhou and Hong Kong provides makers with a captive market, helping to sustain the line. These are key hubs for electronic products, watches and jewelry, and many businesses in Dongguan send their finished items to manufacturers there.
Business conditions in the city are suitable for international trade. There are more than 2,000 transportation and logistics firms. A truck from Dongguan can reach Shenzhen’s Yantian Port and Guangzhou’s Huangpu Port within two hours.
Meanwhile, Hong Kong’s sea- and airports are at most three hours away by land. This is one week faster compared with other sourcing centers in the mainland.
With the various shipping options, makers can offer buyers several means of transporting finished products. Small and urgent orders are usually exported by air. Flights can be arranged within two days. Large requests having a regular delivery turnaround time are sent by sea. It takes one week at the longest to book vessels.
The ease in conveying finished goods applies to raw material and component procurement. This complements Dongguan’s upstream network of inputs and service providers. Moreover, it facilitates manufacture for homegrown enterprises.
Gift packaging companies in the city have access to 200 to 300 tin, and 300 to 500 leather, plastic and fabric suppliers. More than 1,500 factories yield kraft, and a larger number offers printing services.
Wood and metal are also abundant. In addition, screws, hinges and glue are available. Metal tooling machines may likewise be acquired.
Distributors and liaisons for overseas PVC, PP, PE, fabric and paper manufacturers have established offices in Dongguan to take advantage of the flourishing local industry. This expands the sourcing options for gift packaging enterprises in the hub further.
Material and component suppliers can often be found within the same vicinity as gift packaging companies. This is especially true in the towns of Dalang, Shijie, Dongkeng and Liaobu. The proximity shortens the delivery time significantly. Factories wait for only a few days or even hours to replenish their stocks.
These advantages are complemented by Dongguan’s manpower resource. There are plenty of skilled workers in the hub. Many of them boast three to five years of experience in the line.
The city’s annual revenue from the sector is estimated at between $15 billion and $20 billion, 30 percent of which comes from direct exports. The main overseas destinations are North and South America, Europe, the Middle East and Australia.
Pieces used for packaging electronic devices, watches and jewelry account for 40 percent of international sales. The rest of the output is absorbed by the domestic market.
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Note: This article "Support infrastructure buoys Dongguan gift packaging industry" was originally
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
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