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Stronger seasonal demand for IT goods expected in China after Olympics

Despite that demand for IT goods in China has been suppressed by natural disasters and stricter customs checks, industry players anticipate that the upcoming strong season in the fourth quarter should beat seasonal patterns when distributors replenish their inventory and consumers resume their buying.

Most IT goods makers failed to see the anticipated strong sales in China prior to the Beijing Olympics, partly due to a series of disasters such as snow storms and an earthquake which took place in the first half of 2008. Sales were further suppressed before the Olympics as the China government enacted strict policies over customs checks, which in turn discouraged distributors from building up inventories.

Since IT retailers are still operating during the Olympics, and the influx of visitors is encouraging sales, some distributors have already found their inventory rapidly decreasing. Some industry watchers estimate that all IT retailers will replenish their inventory on a massive scale. Also, consumers are also expected to start buying again after the Olympics.

Slim-type TVs, handheld devices, LCD TVs and notebooks have seen a noticeable upsurge in sales. The industry players noted that full HD LCD TVs will enjoy a good sales record as many Olympic events are broadcast digitally. Mobile TV is also expected to see hot sales as consumers look to receive real-time games broadcasts.

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