Economy

Shanghai tops as sourcing center

(Xinhua)
Updated: 2010-06-02 11:49

BEIJING: Multinational firms are expected to increase procurement value by 30 percent in Shanghai this year, thanks to the recovering economy and their expansion plans in China, a United States-based business-to-business media firm said Tuesday.

In 2010, multinationals, including Wal-Mart, Honeywell and Dell, will spend $50 billion on procurement in Shanghai, an annual increase of 30 percent, according to Global Sources.

"The booming demand of Chinese consumers hasn't changed despite the uncertainties in the global economy," Tommy Wong, general manager of Global Sources Exhibitions, said at a press conference for the China Sourcing Fair: Electronics.

"Shanghai has become China's most vibrant sourcing hub thanks to location and its economy," Wong added.

China's retail market value is set to grow 79 percent annually from 2009 to 20.8 trillion yuan ($3.05 trillion) in 2014. The value of the electronics market will jump 55.8 percent to 1.38 trillion yuan in the period, according to the China Retail Report.

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Dell, the world's No 2 PC maker, plans to increase procurement in China from $23 billion in 2008 to $25 billion this year.

Asian consumer electronics markets, led by China, will account for 36 percent of the global market next year from 34 percent now, according to the US Consumer Electronics Association.

More than 3,000 Chinese retailers, including Bailian Group, Trust-Mart and Wangfujing Store, have set up procurement offices in Shanghai, Global Sources said.

The fair, which opens today in Shanghai, boasts more than 460 booths displaying the latest consumer electronics, computers, telecommunication and GPS products.