It’s Beginning To Look A Lot Like An Imported Christmas
Imports are an important part America’s holiday gifting. Industry research firm IBISWorld has identified this year’s imports’ share of domestic demand for the most popular holiday gift categories.
Although jewelry and precious accessories account for only 10 percent of gift revenue, more than 100 percent of these goods are sourced from other countries. Jewelry is often re-imported; for example, precious metals and gems are sourced from overseas, domestic jewelers create part of the piece then export it to jewelers abroad, who finally re-import the pieces for sale to consumers.
Consumer electronics like TVs, computers, cell phones and tablets are also largely imported, with an estimated 95 percent of domestic demand covered by products from overseas. Electronics companies largely focus on design and marketing domestically, with manufacturing activities outsourced to countries with lower production costs.
Clothing is also mostly imported, with an estimated 87 percent of all apparel coming from overseas. Domestic clothing companies largely outsource the manufacturing function of their products to low labor-cost countries to cut costs and retain margins. Furthermore, high-end designer apparel is sourced from countries like Italy. The 13 percent of apparel manufactured domestically is mainly premium denim and eco-friendly designer brands.
Home and garden appliances are also largely manufactured overseas. The majority of these items are imported from China, where production costs are significantly lower than in the United States. IBISWorld estimates that 73 percent of domestic demand for home and garden appliances and products in 2011 is met by imports.
Other categories exhibit much less import competition. In the toys, hobbies and sporting goods segment, about 51 percent of products are imported. Toys are largely imported from low labor-cost countries while most sporting goods are made domestically. Cosmetics and personal products are also mainly made in the United States because research and development is closely tied to the production of such items, hence keeping the entire supply chain in the United States.
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