With the demise of the CD and DVD businesses are increasingly looking to use USB memory sticks printed with their logo or brand as a promotional giveaway or to support their sales and marketing activities. The market is huge and growing fast.

To support the growth in this sector lots of small "factories" have sprung up around Shenzen, China and whilst most are described as "factories" in the main they are just assembly and print plants. The core components (memory chips, flash controllers, USB connectors and plastic/metal housing are sourced from various supplies and the USB sticks are then assembled, printed, tested and then packaged and sent to the customer.

Very few of the factories have automated SMT machines with most relying on cheap labour to assemble the USB sticks. But, with the gradual consumerism of China wages are increasing and worker flexibility is not what it used to be.

China's annual New Year holidays which can last for several weeks also cause havoc in the supply chain. Customers who thoughout the rest of the year are used to a lead time of 7-10 days find themselves having to wait for anything up to 5 weeks.

The growth in this market sector, increasing costs in China and issues caused by extended and long holiday periods might create the perfect opportunity for India to gear up and enter the market.

http://www.usb2u.co.uk