PU leather is the most commonly employed material in jeweled belts, as shown in model HW51003BT from Hung Wan of Hong Kong.

Companies in this OEM-oriented industry are increasing quotes to compensate for escalating expenses.

Rising material and labor costs, and the yuan's appreciation are forcing suppliers of jeweled belts in mainland China and Hong Kong to raise prices 10 percent in the months ahead.

The majority of design work is concentrated on the belt buckles. Although the belts themselves may be embellished, stones and studs are usually set on the buckles, and often by hand.

The cost of buckles rose significantly during the past three years, and is forecast to grow by an additional 10 to 15 percent in coming months. Apart from a general increase in global metal and plastic costs, the strengthening value of the yuan against the US dollar is contributing to more expensive buckles.

Zinc alloy is the most commonly used type of metal for buckles, with copper and brass adopted in upscale models. Weight is the major factor affecting the cost, with a gram generally going for $0.49.

The workers check the quality of rhinestones, crystals, imitation gemstones and metal studs before setting these manually on the buckle. Since this is a crucial part of the production process, companies typically hire workers who are experienced in delicate handcrafting.

Suppliers have been finding it difficult to retain these employees, however, especially after the long holidays. The shortage in skilled labor has created a very competitive market for such workers, forcing companies to improve their compensation packages. Labor costs, therefore, have been going up 10 to 15 percent annually.

These factors have made it inevitable for suppliers to raise product prices. While some are hoping to keep increases within 6 percent, most companies are planning to implement a 10 percent adjustment.

	Most companies, including Shishi Yideli of mainland China, adopt zinc alloy buckles. The company's WG08224 model has glass stones on PU leather.

Production at the majority of factories is driven by contract orders. Because of this, most companies are hiring designers to assist buyers in creating new models. Suppliers that do develop their own designs usually show these to buyers for modification.

Among the mainland companies in this report, Shishi Yideli Hardware Fashion Co. Ltd has 20 sample makers in its 30-member R&D team.

Wenzhou Qiaoshi Leather Jewelry Co. Ltd has nine R&D specialists, five of whom are tasked to produce countersamples.

There are five designers in Yiwu City Waistband Leather Co. Ltd's 19-member R&D team. They regularly to travel to France, Germany and other countries in Europe to keep them abreast of trends.

Of Wenzhou Yuanfang Leather Co. Ltd's six in-house designers, two use AutoCAD in product development.

In Hong Kong, countersamples usually take between 10 and 20 days to be completed, depending on where the materials need to be sourced. About four to seven changes are generally needed before the sample is approved for production.

Suppliers produce mostly midrange jeweled belts.

Yen Fen Garment Accessories Ltd adopts acrylic stones purchased in Taiwan, the Czech Republic and Austria in designs. Crystals are incorporated on request.

Hung Wan Leather International Ltd embellishes belts and buckles with metal studs, rhinestones and even turquoise. Products typically come in 3.5 to 4.3cm-wide PU leather with pin-type buckles, some of which are rhinestone-encrusted or have engraved patterns.