China Kitchenware Industry

An Expert's View about Kitchen Equipment in China

Posted on: 30 Mar 2010

Kitchenware suppliers in China are taking a number of steps to keep export sales afloat amid the economic slowdown affecting key markets. In fact, some makers anticipate their overseas revenue to increase by up to 10 percent in 2009 despite the crisis.


To stimulate demand, these companies are reducing minimum order requirements and expanding design selections. They are also reaching out to alternative markets such as Asia, South America and the Middle East in hopes of propping up revenue.


In an effort to draw buyer interest further, a growing number of makers are emphasizing aesthetics, mostly in the color and shape choices for cookware, bakeware and kitchen utensils.


Further, many suppliers are planning to raise quotes by up to 10 percent, even though buyers are not receptive to price adjustments especially at this time of global economic recession. They are pointing to the fluctuating cost of raw materials, primarily steel, as the foremost reason behind looming markups.


The following are some of the key trends we see in China’s kitchenware industry:

• Many suppliers, especially large companies, will boost capital expenditure by 20 to 50 percent to upgrade capability. Financing will go mainly to enhancing R&D and design capability. Companies will also shorten delivery time and increase staff training.

• Rising prices will be prevalent in coming months to cover for diminishing sales. Suppliers are also looking at export destinations apart from the traditional US and European markets.

• Makers are introducing more cookware and bakeware pieces innovelty shapes and colors to help stimulate sales. Multipurpose units such as pots and pans designed for storage, cooking and serving are receiving increased attention as well.

• Alternative materials in the kitchen knives line are seen as having potential, as more suppliers release blades in ceramic and zirconia. Stainless steel, however, continues to be the most commonly used material.




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


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Posted: 30 March 2010

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