Guangdong exporters score sales from soccer

A shop-owner at the Yiwu Small Commodity Market in Zhejiang province demonstrates a pair of caxirolas, the official instrument for soccer fans to cheer for their favorite teams at the 2014 FIFA World Cup in Brazil. More than 90%of caxirolas are made in Guangdong and Zhejiang provinces. Xinhua

The 2014 FIFA World Cup, set to start June 12 in Brazil, will be a bonanza not only to soccer fans but also to manufacturers in Guangdong province.

Foshan Shunde Cold Magic Air-Conditioning Equipment Co Ltd has shipped 20 central air-conditioning units and mobile air-conditioners valued at 5 million yuan ($802,000) to be used at large temporary venues and press rooms, said Chairman Xiao Jiaxiang.

Brazil World Cup-related orders for metal key chains contributed about 27.5 percent to Zhongshan Riying Gifts & Premium Manufacturing Co's total revenue of $6.8 million last year, said Lin Wenjie, a business manager of the company. The revenue represented a 13.3 percent rise over 2012, he said.

"The growth in European and US markets has been very slow over the past few years, with some regions even posting negative growth," he said. "But emerging markets such as South America enjoy relatively larger room for growth. The demand from the World Cup has created opportunities for domestic exporting companies."

Prior to World Cup orders, Zhongshan Riying had been selling to Brazil, occupying 22 percent of the market in the country, he said.

Dongguan Wagon Giftware Co, which is authorized to supply hardware, ceramics and plastic gifts, as well as stationery and accessories, saw its products for the World Cup start to be sold at the end of last year, said a manager who identified himself as Sean.

Shantou Yuxin Science Toys Industrial Co Ltd received an order last year to supply handheld football games for an authorized Brazilian company, which will be sold in Brazil and Germany, said Wang Qiuying of the sales department.

The order helped the company grow its revenue by 10 percent last year to $8 million, about $5 million of which came from overseas markets.

"The demand from emerging markets in South America is increasing gradually but holds large potential," Wang said, adding that Brazil accounts for one-quarter of the company's toy business.

Air-conditioning executive Xiao said: "It helps a lot to lift the awareness of our brand overseas by participating in a world-class event. Cold Magic was invited by the organizing committee of Brazil World Cup partly because we were a supplier for the London Olympic Games."

Having built a presence in Europe, Australia and the United States, the company is further exploring the Brazilian market, he said.

In global commodity logistics, Sean of Dongguan Wagon saw the most challenging aspect as the availability of accurate sales data in various markets so the company can accurately adjust its inventory and production capacity.

To enable traditional manufacturing companies to access the consumer market or to expand into emerging markets, it is important for a company to have sound planning and preparation, Sean said.

If a company lacks a clear goal, it wastes resources, and the company can easily be driven out of the market, he said.

Trade between Guangdong and Brazil accounted for more than 10 percent of Sino-Brazilian imports and exports and totaled $9.1 billion in 2012, according to official statistics.