China Kitchen Appliances Industry

An Expert's View about Sourcing in China

Posted on: 30 Mar 2010

Kitchen appliance suppliers in China are optimistic that overseas sales will recover in 2009 despite the economic recession that has put extreme pressure on the industry. In fact, suppliers that survived the first wave of factory closures in the fourth quarter of 2008 are already seeing opportunities amid the crisis.


With many small makers squeezed out of the line, those that remain have started competing on quality, not just price. And this trend will become more noticeable in coming months as more suppliers are expected to succumb to the economic crunch.


The industry shakeout is also giving midsize and large companies favorable timing to move upmarket and with it the opportunity to seize orders from major global buyers. Surviving small suppliers, on the other hand, are expanding their market reach to emerging export destinations.


The following are some of the trendswe see in China’s kitchen appliances industry:

• More suppliers are targeting smaller but viable export destinations such as the Middle East, non-EU countries, Southeast Asia and Russia.The US, one of the largest markets in the line, is becoming less favored now due to the severe impact it received from the global economics lump.

• Energy efficiency and multifunctionality are the top R&D priorities of most suppliers since products with such features command higher prices and enjoy strong demand from overseas markets.

• As more suppliers move upmarket, a number of manufacturers are switching to imported components to boost product performance. For instance, the heating systems of some of the latest China-made cooktops adopt Japan, Spain and Italy technologies.

• Prices are likely to remain stable in the next six months as raw material costs declined and the yuan stabilized in late 2008.



The above is extracted from the Executive Summary of China Sourcing Report: Kitchen Appliances


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Posted: 30 March 2010

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