Full Description

Global Sources Ltd. (Global Sources), incorporated in 1970, is a business-to-business (B2B) media company that provides information and integrated marketing services, with a particular focus on the Greater China market. The Company offers a range of media and export marketing services in the industries it serves. Suppliers using its three primary channels: online marketplaces, print magazines and trade shows are supported by its advertising creative services, education programs and online content management applications. It operates in a number of industry sectors including electronics, fashion accessories, hardware and gifts. As of March 2009, Global Sources served a community of over 803,000 active members in more than 200 countries and territories.

The Company generates the majority of its revenue from suppliers in Asia, with China being its largest market. Its revenue is derived from two primary sources: online services and other media services. Its primary service is creating and hosting marketing Websites that present suppliers’ product and company information in a searchable manner on Global Sources Online. It also derives revenue from banner advertising fees. Global Sources publishes trade magazines, which consist primarily of advertisements from suppliers and its independent editorial reports and product surveys. It publishes its core trade magazines monthly and a host of specialized magazines seasonally. It also derives revenue from buyers that subscribe to its trade publications. Its China Sourcing Fairs offer international buyers direct access to manufacturers in China and other Asian countries.

Online Services

Through Global Sources Online, the Company’s online marketplace, buyers are able to identify and make inquiries to suppliers. Its primary source of revenue is from suppliers who pay for marketing websites. Each marketing Website is comprised of a home page, a company profile and a virtual showroom containing product profile pages on the supplier’s products. Each product profile page contains detailed product information, specifications and full color images. Buyers can reach a large potential supply base on Global Sources Online by searching among, and/or making inquiries to, approximately 196,000 suppliers. Suppliers are categorized as verified or unverified according to the products they can supply.

Trade Shows

Global Sources’s largest shows are in Hong Kong. It has six China Sourcing Fairs scheduled in Hong Kong, with each to be held in the spring and fall. The shows bring buyers from around the world to meet face-to-face with suppliers. Its China Sourcing Fairs include electronics and components, fashion accessories, gifts and premiums, home products, baby and children’s products, underwear and swimwear and security products. It has also added various smaller versions of many of these shows in India, Dubai and Shanghai.

Trade Publications

The Company publishes 13 monthly publications that are circulated to buyers worldwide. Its trade publications come in print and digital formats and contain paid advertisements from suppliers, as well as its independent editorial features, which include market reports and product surveys. In addition to its paid subscription base, it offers samples of its trade magazines free-of-charge to qualified buyers.

Advertising Creative Services

Global Sources offers its customers advertising and marketing creative services, which assist them in communicating their selling propositions and in executing integrated marketing campaigns across its online services, trade magazines and trade shows. Account managers and copywriters in its customer service centers assist suppliers with creative services including digital photography of products, translation, copywriting, ad layout and quality control. Basic media and creative services are included in its media charges.

China Sourcing Reports

The Company has more than 100 different China Sourcing Reports for sale and published more than 50 of these reports during the year ended December 31, 2008. Each China Sourcing Report provides detailed, product-specific information on suppliers and supply market conditions throughout Greater China that is based on its factory visits, face-to-face interviews, and detailed questionnaires. Revenue is derived from sales to buyers.

Private Supplier Catalogs

Its Private Supplier Catalogs enable suppliers to enter, manage, update and distribute their product and company data for a variety of online marketing and cataloging applications. It provides tools within the catalog to assist suppliers with creating, updating and posting content. Also the catalogs are maintained in a private, password-protected environment where the catalog user has the sole right of access and data entry.

Media for Engineers and Executives in Asia

In addition to its primary media, which connect export suppliers in Asia with buyers worldwide, it is also a provider of information to electronics engineers and executives within Asia. For this segment of its business, it has19 online and five print media, the International IC show and several other conferences and events.