| | 
 |
| | The W2-D265 from Zhuhai Witson is a 2-DIN car DVD player with built-in GPS and Bluetooth functions. |
 |
Location and logistical advantages boost the province's status as a manufacturing and component sourcing haven. Guangdong province is home to 30 to 50 suppliers of car DVD players, which represent between 70 and 80 percent of China's car DVD player supplier base. About 70 percent of these manufacturers are private domestic operations, and 25 percent are Hong Kong- or Taiwan-invested. Their manufacturing scale is of mass production proportions at a relatively stable monthly volume. Many of these makers manufacture related products such as DVD players, car CD players, car MP3 players and GPS devices before they joined the car DVD player line. Among the many types available, it is the in-dash player that dominates the output of majority of manufacturers in Guangdong due to its wide application and easy installation. Car DVD players without screens are also offered. This year, manufacturers located in the province anticipate an increase in output, up 30 to 40 percent over 2007's production of more than 2 million car DVD players. Exports accounted for 75 percent of the output last year.
Geographical advantage facilitates overseas, inland traffic
Mature component supply chain, allied industries boost manufacturing
Production expansion plans afoot
|
Geographical advantage facilitates overseas, inland traffic
Guangdong's geographical location is its singular advantage over other regions in China. Adjacent to the South China Sea and boasting a 3,368km coastline, the province has 36 seaports, in addition to the 73 inland waterways ports. Among them are three of China's top 10 ports—Shenzhen, Guangzhou and Zhongshan. Shenzhen, the second biggest city in Guangdong, has three container parks that had a throughput of more than 20 million standard containers in 2007. The province also has a thriving inland traffic in areas surrounding the Pearl River, which experienced a surge in development in the last 10 years and led to the formation of a formidable economic circle better known as the Pearl River Delta region. A network of highways and railways backs this industrial infrastructure. This support base is being further developed to combine with sea and air transport systems.
|
Mature component supply chain, allied industries boost manufacturing
Apart from electronics manufacturers, many component suppliers converge in Guangdong as well. The province provides easy access to a mature supply chain of LCD panels, navigation software, decoder ICs and solutions. Major global suppliers of ICs and LCDs, for one, have agents or representative offices in Guangdong. This places car DVD player makers in close proximity to these suppliers' field application engineers for technology support. In addition to component supply, Guangdong has a well-developed support industry offering various services such as mold, PCB, software/hardware and cosmetic designing, as well as mold making, plastic injection molding and PCB subassembly. Combined, these support sectors offer manufacturers outsourcing options, enabling them to reduce both product development and production lead times. Among the cities in Guangdong, five host the most number of car DVD player makers. These are Shenzhen, Guangzhou, Dongguan, Zhuhai and Huizhou. In general, the local governments of these cities have been supportive hosts, implementing economic measures that will further develop manufacturing and trading industries within their boundaries. These measures include organizing groups to trade shows and funding show participation. Shenzhen is the leading manufacturing site for the car DVD player line, being the base of operations of the majority of suppliers in Guangdong. The city's special economic zone status has been its prime attraction to manufacturers, design houses, and raw material and component suppliers.
|
Production expansion plans afoot
Forecasts for the car DVD player line this year are high as shown in interviewed makers' expansion plans. Shenzhen Fugle Technology Co. Ltd expects to exceed its 2007 shipment of more than 600,000 car DVD players and reach the 1 million mark this year. In anticipation of this increase, the maker plans to expand its production capacity, currently at 80,000 units monthly. Its two factories in Shenzhen, which have a combined area of 30,000sqm, are equipped with eight assembly lines, SMT machines and TV signal testers. It employs 1,400 workers, 35 R&D engineers and 65 QC staff. Shenzhen Fugle has nine years' experience in developing and manufacturing car DVD players. It offers car DVD players without monitors, as well as units in portable, 1-DIN and 2-DIN in-dash, flip down and headrest form factors. Shenzhen Jensor Electronics Ltd, which projects a 40 percent increase in output in 2008, plans to expand its overseas market for this year. It shipped more than 550,000 car DVD players in 2007, of which 70 percent went to exports. Its monthly production capacity is 50,000 car DVD players. Shenzhen Jensor was established in 1996 and entered the car DVD player line in 1999. Its 6,000sqm factory in Shenzhen has two assembly lines and SMT machines. The company has more than 700 employees, including 600 workers, 50 R&D engineers and 100 QC personnel. It accepts OEM and ODM orders. Shenzhen Kovan Sound Electronic Co. Ltd will increase its output by 30 percent in anticipation of demand this year. It sold more than 190,000 car DVD players in 2007, with 45 percent shipped overseas. It can produce up to 30,000 car DVD players a month. Shenzhen Kovan, which has been manufacturing car DVD players since 2003, focuses on in-dash units. It operates a 3,500sqm factory in Shenzhen and has about 400 employees, including 350 workers, 12 R&D engineers and eight QC staff. It has five assembly lines and is equipped with a temperature tester, a vibration tester and an aging tester. The company offers OEM and ODM services. Shenzhen OceanStar Electronic Technology Co. Ltd looks forward to higher export sales, with projections at 10 to 20 percent. It has been producing car DVD players for more than four years now. In-dash, flip down, sun visor and headrest DVD players comprise its product range. Shenzhen OceanStar's 8,000sqm, 200-employee factory in Shenzhen has three assembly lines with monthly capacity of 10,000 units. Zhuhai Witson Industrial Co. Ltd began manufacturing car DVD players in 2004, one year after it was established. The maker offers players without monitors and portable, 1-DIN/2-DIN in-dash, flip down, sun visor and headrest units. It accommodates OEM and ODM orders. Zhuhai Witson estimates an increase of about 10 percent in its car DVD player shipment, which was at about 300,000 units in 2007. The company can produce up to 25,000 units monthly at its 5,000sqm factory in Shenzhen. It has 355 employees, four assembly lines and SMT machines.
|