reading glasses

China's eyewear industry is expected to consolidate in the next three years, even as exports continue to grow steadily. In addition, the industry is foreseen to continue its steady shift to upmarket manufacture. The country's overseas sales of eyewear (including reading glasses) have been increasing over the past three years. At US$960 million, exports in 2005 were 25 percent higher than in 2004. Shipments made in the first six months of 2006 increased by almost 35 percent to US$612 million compared with the US$454 million worth of eyewear exported in the previous corresponding period. In terms of volume, however, reading glasses exports are not growing as fast. Outbound shipments in 2005 totaled 1.4 billion pairs, up by only 8 percent. The higher growth in export sales value can be attributed to increasing average unit export prices, which went up 17 percent that year. In fact, while export volume in the first six months of 2006 had grown 15 percent, average unit reading glasses export prices increased 18 percent. Higher raw material and labor costs are the main reasons behind escalating average unit export prices. In 2005, the cost of metal and plastic increased by about 60 percent. Labor costs, meanwhile, went up an average 20 percent as companies increased spending on compensation and benefits to retain workers amid the ongoing shortage in manpower. Labor costs are expected to go up an additional 15 percent in 2007.