Research conducted last week by Global Sources has revealed that price increases and a decrease in consumer spending are the two biggest challenges facing buyers in the next 12 months. To address these issues, buyers are looking to consolidate existing suppliers; enter new markets; and look for more competitively-priced products. However, the research also revealed that 77 percent of the 300 buyers who responded plan to increase or keep their sourcing volume the same in the next 12 months, and will continue to source most of their gifts and home products from China.

The objective of the survey was to discover international buyers' sourcing plans for the next 12 months. Findings include:

- 38 percent of buyers stated that they plan to increase their sourcing in the next 12 months
- 39 percent said their sourcing is expected to remain the same
- 30 percent of buyers stated that they plan to increase their sourcing volume from China
- 31 percent of buyers plan to keep their imports from China the same as last year
- 69 percent of buyers surveyed said that they expect over 50 percent of their sourcing spend to be used to buy products from China
- 71 percent of buyers said that looking for new markets, other than China, was critical over the coming year with Vietnam (60 percent) and India (53 percent) the most popular new markets for buyers

Global Sources' Executive Director, Sarah Benecke said: "Greater China remains the key sourcing location for international buyers of gifts and home products. But our research also shows that to maintain this position, manufacturers must react to international buyers' needs by improving quality and providing more competitively-priced products. More innovation, a wider product range, decreasing development and production time and improving customer service are all deemed critical to buyers too."

The survey was completed a week before the China Sourcing Fair: Gifts & Home Products opens in Hong Kong. As well as over 3,000 booths from Greater China, buyers can find over 100 booths from popular new sourcing locations, India and Vietnam. In total, the Fair will showcase over 3,200 booths. Other countries exhibiting include the Philippines, Singapore, Thailand, South Korea, Australia, France, Israel and the United Kingdom.