DONGGUAN/HONG KONG -- "By rights, we should be in a peak period," said Michael Lu, founder and president of premium gift box producer Brothersbox, based in Dongguan, China. The period from May to October is gift box season -- the lead-up to Christmas -- when Lu's company usually makes most of its money.
However, this year, something strange has happened. "Orders decelerated," said the 51-year-old Lu, who presides over a team of 240 workers and counts Disney and Marks & Spencer among his customers. He is not alone. Throughout Dongguan, a city in southern China dubbed the "world's factory" for its concentration of export manufacturers, many are telling similar stories.
