Household & Kitchen Appliances

Household & Kitchen Appliances Essential sourcing intelligence for buyers China manufacturer profiles Detailed profiles of 43 verified suppliers and contact details of an additional 20 exporters October 2010 US$395 Guangdong Zhejiang Household & kitchen appliances production centers Product & price trends Prices and specifications of 195 top-selling export products Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D wwwchinasourcingreportscom

EXECUTIVE SUMMARY HOUSEHOLD & KITCHEN APPLIANCES Supplier capability in China EXECUTIVE SUMMARY In China s household and kitchen appliances industry, suppliers are improving product characteristics to increase appeal in the various overseas markets Specific efforts include the utilization of advanced components and improved inner structures to enhance energy efficiency and performance In addition, many companies will be shifting their focus to the high-end segment, where margins are wider and competition is not as fierce The imposition of such measures coupled with strengthening demand from key markets is leading to a generally optimistic export outlook, with nearly all suppliers anticipating higher international shipments across the next 12 months The following are some of the key trends we see in China s household and kitchen appliances industry: The incorporation of additional functions is growing in popularity as companies attempt to boost product differentiation The development of intelligent models is growing across the various categories Such models contain advanced technology that allows independent automation at varying levels Enhancements directed at improving performance characteristics are also being performed A number of companies, however, will continue to focus on inexpensive units that can perform only basic functions Such models continue to account for the bulk of shipments in certain segments Prices are expected to rise in the various categories as material and production costs grow Such increases will typically be restrained to less than 5 percent as companies attempt to keep quotes at levels attractive to buyers The EU will continue to be the major export destination in coming months Alternative markets, however, are expected to receive a greater share of shipments as makers continue to pay attention to nontraditional locations The majority of suppliers will be increasing capital expenditure in line with the positive projections for overseas sales This report covers the major categories exported from China: Toasters and toaster ovens, water dispensers, coffee makers, electric kettles, electric cookers, food processors, water heaters, electric fans, vacuum cleaners, electric irons, and air treatment and heating appliances For each product, the report describes the latest designs, materials, finishes and treatments employed by makers It also highlights the factors that are key in determining the price and quality of low-end, midrange and highend releases Projections for the next 12 months for prices, overseas sales, capacity expansion plans and R&D focus are detailed in the Supplier Survey The Industry Overview section looks into the popular methods employed by manufacturers of household and kitchen appliances to raise competitiveness Reflecting the industry structure, about 83 percent of the enterprises interviewed for this report are mainland-china owned The rest is backed by Hong Kong, Taiwan and Western investors Most are manufacturers with direct export rights, and have at least 11 years of experience in the industry The provinces of Guangdong and Zhejiang are the key manufacturing centers for China-made household and kitchen appliances To represent this accurately, 84 percent of profiled suppliers are from these hubs In this report 43 in-depth company profiles 20 additional suppliers 195 top-selling export products Supplier demographics Supplier survey Industry statistics & charts METHODOLOGY To produce this report, Global Sources surveyed a wide range of suppliers Rather than focus simply on high-profile makers, we compiled a representative sample of large, midsize and emerging manufacturers All profiled companies are export-oriented professional suppliers that are verified by Global Sources Each supplier is confirmed to be authentic with a legally registered business All companies are visited three or more times to ensure they are export-ready and have real offices and products The listed contact person has been verified to represent the registered company In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials All profiled suppliers participated in a survey designed to provide insight into product and price trends, and challenges facing the industry All survey questions are single choice Suppliers are ranked based on a 6-star ranking system Companies with a higher star ranking provide more business information and verification reports on their Global Sources online homepages Suppliers rated 5 or 6 stars have a Credit Check report from First Advantage or Sino-Trust and a Supplier Capability Assessment report provided by Bureau Veritas online The rankings are correct at the time of publication and may be subject to change wwwchinasourcingreportscom 3

CONTENTS CONTENTS INDUSTRY OVERVIEW 7 Supplier summary Main production centers Supplier demographics Air-treatment & heating appliances 11 Coffee makers & electric kettles 15 Electric water heaters 19 Vacuum cleaners 22 Blenders & juicers 25 Water dispensers 28 Toasters & toaster ovens 30 Electric irons 32 Electric fans 33 Electric cookers 34 Supplier survey 35 Export prices, price increase, export sales, target markets, capital expenditure, challenges, export capability, R&D focus SUPPLIER PROFILES 39 Supplier locations Industry composition Exporter ranking Supplier matrix Production checklist Supplier profiles PRODUCT GALLERY 137 Top-selling export products ADDITIONAL SUPPLIERS 175 Key products, contact details Copyright 2010 Trade Media Limited All rights reserved Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited Published by Publishers Representatives Limited (on behalf of Trade Media Limited) 4th Floor, Century Yard, Cricket Square, Elgin Avenue, PO Box 32322 SMB, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong ISBN 978-988-19234-4-8 Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof) All product images are provided by the companies interviewed and are for reference purposes only Those product images featuring products with trademarks, brand names or logos are not intended for sale Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party 4 China Sourcing Reports

INDUSTRY OVERVIEW INDUSTRY OVERVIEW China suppliers of household and kitchen appliances are taking varied product-modification steps to boost sales Among these measures, increasing energy efficiency is seen across nearly all categories Many units now require less power to accomplish tasks, with some companies also developing models that need shorter time for operation While advanced components are typically employed for improving product performance, a number of makers are also redesigning internal structures In the rice and slow cookers line, for example, companies are increasing output of pressure products Such releases consume less power than traditional models while incorporating better safety mechanisms For storage water heaters, many new units are being fitted with imported heating elements that raise power efficiency by at least 20 percent Such parts are typically sourced from Emerson in the US Alongside the shift towards efficient products, many operations are moving upscale, where margins are higher The economic recovery of the main overseas markets and the growing need for differentiation are the primary factors To achieve this, better performance is considered key In the latest drip coffee makers, the position of components such as the heating element and switches is altered, and liquid flow is improved to enable higher power and water temperature output The latter is the primary determinant of flavor Resultantly, many new models can achieve 90 C, an increase of nearly 13 percent over previous versions Select units even reach 92 C via the installation of partially sealed boilers In the steam espresso machines line, makers are installing advanced temperature control systems and pump structures The high-tech components enable milk frothing and variable flavor intensity to simulate coffee from various locations Further, a growing number of companies are boosting output of capsule makers Intended for home and office use, such compact designs require less time and fewer procedures than drip and espresso counterparts Operation is generally initiated and controlled by a single button In the electric kettles segment, aesthetic improvements are the focus for suppliers as they move upscale Many products now come with ceramic housings that boast a translucent or colorful finish and weigh less than previous counterparts A number of companies that offer household and kitchen appliances, however, are continuing their focus on the manufacture of inexpensive units that perform only basic functions While such versions often go to the major overseas destinations of the US and the EU, many are also being shipped to emerging markets such as Southeast Asia, Brazil and Australia In the toasters and toaster ovens category, low-end and midrange models account for the bulk of shipments as demand for entry-level units remain steady Similarly, many makers of airtreatment appliances such as purifiers and humidifiers are boosting output of inexpensive products with only basic capability Major customers Company Cixi Tenglong Foshan Shunde Jiacheng (Datong) Kingstar & Kingpower Natridy Ningbo Shimono Shenzhen Sigma Suzhou Cleanstar Data: All surveyed suppliers Supplier summary Suppliers surveyed 43 Export sales $5309mn Export ratio 80% OEM business 62% Capacity utilized 70% Annual R&D spending $311mn Full-time employees 25,416 Data: All surveyed suppliers Intelligent products Taking the trend for high-end household and kitchen appliances a notch higher, a handful of companies in China have started to develop technologically advanced designs This comes with an aim of carving a niche in the small but lucrative upscale market Generally, companies that can manufacture such releases tie up with foreign appliance specialists during the R&D process Better energy efficiency, portability, personalization and user convenience are the main product development points being addressed Exports of robotic vacuum cleaners, for example, have been experiencing steady growth in recent years, as people become busier and have less time to do manual cleaning chores In fact, 30 to 40 percent of China's suppliers of the line now offer such models Development costs, however, are significantly higher than those for Aldi (Germany) Wal-Mart (Mexico), Argos (UK), Metro (Spain), Carrefour (France) De Longhi (Italy) Home Depot (US), Taurus (Spain), Yamazen (Japan) Wal-Mart (US), CTC (Canada) Wal-Mart, Kmart (US); Coca-Cola (Mauritius) Aera (Germany), Vax (Australia), Olympic (Italy) wwwchinasourcingreportscom 7

SUPPLIER PROFILES Electrotech (Xiamen) Co Ltd Hong Kong-invested generates $9 million or 90 percent of its total annual sales from the household and kitchen appliances line The supplier manufactures and exports 18,000 air treatment and heating units per month, 20 percent of which are offered under the in-house Airdow brand ODM and OEM orders account for 20 and 60 percent, respectively Nearly all shipments go to North America, the EU, Eastern Europe, the Middle East and the Asia-Pacific region The first destination represents 40 percent of overseas contracts and will remain the target market next year The company s R&D team of 15 will focus on multifunction designs, receiving an annual budget of $300,000 Another 15 employees execute QC processes to ensure that operations continue to comply with ISO 9001:2008 requirements runs a 25,000sqm factory in Fujian province At the facility, the supplier operates lead-free soldering and plastic-injection machines, currentleakage and voltage testers, an aging lab, and spray-painting and coating lines Profile Production units/mth Capacity Output Exports 20,000 18,000 18,000 Company facts Year established 1997 Business type Manufacturer Company ownership Hong Kong-invested Head office location Xiamen (Fujian) Number of factories 1 Factory location(s) Xiamen (Fujian) Total factory area 25,000sqm No of full-time employees 300 No of R&D/design staff 15 No of QC staff 15 Annual sales (all products) $100mn Annual R&D spending $300,000 ISO certification Yes Manufacturing profile ODM 20% OBM 20% OEM 60% Sales & output: Household & kitchen appliances Annual sales $90mn Share of total sales 90% Annual export sales $90mn Total monthly capacity 20,000 units Average monthly output 18,000 units Capacity utilized 90% Average monthly exports 18,000 units Export ratio 100% OEM % of exports 60% ODM % of exports 20% OBM % of exports 20% Other products made Car fragrance dispensers, chemical-free car air vent fresheners Contact details Business contact SHAO Jack Phone (86-592) 637-3707 Fax (86-592) 570-2777 E-mail sales@airdowcom ada1997@globalsourcescom URL wwwairdowcom wwwglobalsourcescom/ada1997co Address 3F, 5 Xinguang East Road, Xinyang Industrial Zone, Haicang, Xiamen, Fujian, China 48 China Sourcing Reports

SUPPLIER PROFILES Capability Production checklist Makes molds in-house Yes Makes motors in-house No Spray-painting & coating lines Yes Aging lab Yes Lead-free soldering machines Yes Plastic-injection machines 10 Voltage testers 30 Current-leakage testers 10 Popular export models Air-treatment & heating appliances Model ADA681 MOQ 1,000 units Delivery 35 days Price Exports by product Toasters & toaster ovens Water dispensers Coffee makers & electric kettles Electric cookers Food processors Water heaters Electric fans Vacuum cleaners Electric irons Air-treatment & heating appliances 100% Exports by market North America 40% European Union 30% Europe (non-eu) 10% Asia-Pacific 5% Middle East 10% Other 5% Survey Export prices Increased Export price increase 5-10% Export sales Increase less than 10% Target market North America Capital expenditure Increase up to 50% Major challenge Cost of raw materials Export capability Improve operating efficiency R&D focus Multifunction designs Description: Air purifier; airflow rate 90m 3 /h or 53CFM; CADR 60m 3 /h; effective area 40sqm; <26dB operating noise; 100 to 240VAC, 39W; 68kg; 453x215x32cm; GS, CE, RoHS, UL Air-treatment & heating appliances Model ADA603 MOQ 1,000 units Delivery 35 days Price Description: Air purifier; airflow rate 40m 3 /h or 235CFM; CADR 30m 3 /h; effective area 25sqm; 26dB operating noise; 12VDC, 14W; 35kg; 214x6805cm; GS, CE, RoHS, UL Air-treatment & heating appliances Model ADA609 MOQ 1,000 units Packaging On request Delivery 35 days Price Description: Air purifier; airflow rate 100m 3 /h or 59CFM; CADR 40 to 60m 3 /h; effective area 18 to 25sqm; <26dB operating noise; 220 to 240VAC, 35W; 3kg; generates 3 million anions per cc; 36x157x215cm; GS, CE, RoHS, UL Information not disclosed wwwchinasourcingreportscom 49

PRODUCT GALLERY PRODUCT GALLERY Air-treatment & heating appliances Image file name: AH- CE-002F Image file name: SYXHT013 Model: ADA681 Description: Air purifier; airflow rate 90m 3 /hr or 53CFM; CADR 60m 3 /hr; 40sqm effective area; <26dB operating noise; 100 to 240VAC, 39W; 68kg; 453x215x32cm; GS, CE, RoHS, UL Model: ADA603 Description: Air purifier; airflow rate 40m 3 /hr or 235CFM; CADR 30m 3 /hr; 25sqm effective area; 26dB operating noise; 12VDC, 14W; 35kg; 214x6805cm; GS, CE, RoHS, UL Model: ADA609 Description: Air purifier; airflow rate 100m 3 /h or 59CFM; CADR 40 to 60m 3 /h; 18 to 25sqm effective area; <26dB operating noise; 220 to 240VAC, 35W; 3kg; generates 3 million anions per cc; 36x157x215cm; GS, CE, RoHS, UL Image file name: RPM2601 Model: ADA803 Description: Air purifier; SCM-01 pipe collector; 86m 3 /h or 51CFM; 95% purification, 75% exchange efficiency; -25 to 50 C; 18dB operating noise; 15W fan; 200W heater; 100 to 240VAC; 10kg; 45x15x33cm; Solar Keymark, EN 12975-1 and 2 Model: ADA806 Description: Ventilation system; airflow 200m 3 /h or 118 CFM; 70% heat recovery efficiency; environment temperature -25 to 50 C; 60dB operating noise; 200W fan; 100 to 240V; 305kg; 67x53x28cm Model: ADA981 Description: Air purifier; maximum airflow rate 220m 3 /h or 130CFM; CADR 200m 3 /h; 30sqm effective area; 18dB operating noise; 15VDC; 565kg; 23x29x43cm; GS, CE, RoHS, UL Information not disclosed wwwchinasourcingreportscom 137

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