To gauge buyers’ feedback and identify their sourcing needs, explore product trends, and understand their business development, a comprehensive survey was conducted among international buyers at the Hong Kong Electronics Fair and International Lighting Fair (Spring Edition) from 12-15 April 2023. A total of 455 trade buyers were interviewed.
General Findings
Perspective 1: Sourcing New Products and Identifying New Suppliers are the Main Objectives of Trade Fair Buyers
According to the survey, approximately 80% of buyers attend trade fairs with the purpose of sourcing new products, while two-thirds of buyers also aim to discover new suppliers at these events.
Perspective 2: Optimism among Buyers for Short and Medium-term Business Prospects
The majority of buyers expressed optimism towards their business development, with 54% expecting an increase in sales in the short term (6-12 months) and 71% in the medium term (12-24 months).
Perspective 3: Buyers Conservative in Raising Retail Prices Despite Increasing Sourcing Costs
Although more than 60% of buyers reported an increase in sourcing costs compared to the previous year, less than 50% increased their retail price to the end consumer. This suggests that buyers/retailers tend to be conservative in raising retail prices and have to absorb some of the increased cost of sourcing.
Perspective 4: Increasing Product Variety and Engaging more Suppliers
Close to 70% of buyers have sourced more product variety, which reflects the increase of sourcing costs and their attempt to mitigate the increase in operating costs. Moreover, 67% of buyers have engaged more suppliers, which may indicate that buyers are willing to diversify their sourcing channels to reduce the risk of supply chain disruptions.
Perspective 5: Majority of Buyers use Both Physical and Online Sourcing Channels
60% of respondents used both physical and online sourcing channels. Of those who used physical channels, 85% chose it, while 75% chose online channels. Physical channels were more popular overall, but online channels still had significant support.
Perspective 6: Top Physical Trade Fair Destinations: Hong Kong and Mainland China
Similar to the survey we did in January (Hong Kong Toys and Games Fairs), Hong Kong and Mainland China are the most popular physical trade fair destinations, with 91% and 70% of buyers respectively rating them as their preferred trade fair destinations.
Upcoming Electronics and Lighting Product Trends
Perspective 7: Electronics Industry to Experience Growth in Multiple Categories
The electronics industry is expected to experience growth potential in 2023 across various product categories, with wearable electronics and robotics being the most promising markets for the next two years. 82% of surveyed buyers express optimism about this product category, while 79% of buyers have similarly high hopes for the robotics market. An increasingly digitalized lifestyle provides the consumer electronics market with huge potential.
Perspective 8: Buyers are Optimistic about LED Lighting and Smart Systems
The survey revealed that over 50% of buyers anticipate the biggest growth potential in LED lighting this year, with Outdoor & Public Lighting and Commercial Lighting following.
As LED technology continues to improve and gain widespread adoption, over 60% of buyers predict that there will be significant development potential for household smart lighting systems that can be controlled by smart devices. These findings suggest that the lighting industry is poised for growth and innovation, with increasing demand for energy-efficient and smart lighting solutions.
Summary
The electronics and lighting industries are poised for growth and innovation, with buyers predicting significant potential for various product categories including wearable electronics and robotics, as well as LED lighting and smart systems, reflecting the increasing demand for energy-efficient and smart solutions.
As majority of buyers expressed confidence in online sourcing, why not start your search of electronics and lighting products in our e-Marketplace? You can access via below banner:
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