Makers are adopting reusable or biodegradable materials, and boosting efficiency.
China suppliers of automotive filters continue to focus product development on environment friendly models. This has yielded versions with reusable or biodegradable screening elements. The latest releases also feature better filtration capability to match market requirements for fuel efficiency and cleaner emissions.
At Fujian Lano Industry Co. Ltd, reusable and washable microfiber cotton is employed in select pieces. One of these, the model 1217 air filter, is suitable for turbo- and superchargers.
For the frame, the supplier utilizes a honeycomb structure made of chrome-plated steel, which expands the absorption surface area by 30 percent, resulting in improved throttle response. A new streamlined inner casing helps reduce the product’s overall weight and allows air to flow smoothly into the engine.
Another product, the 1223A model, has a carbon fiber shell. This feature makes the design lighter than metal counterparts.
G&W International Co. Ltd utilizes fabric from bamboo fiber in its model GC-CU2897 cabin air filter to boost filtration efficiency. For the GC-07010 model, activated carbon is adopted. Releases for oil and fuel employ South Korea-made paper.
Ningbo Saire Machinery Manufacture Co. Ltd provides air filters that can screen 0.1•m particles with 99.998 percent efficiency, in contrast to the 99.7 to 99.9 percent rate of other models.
These developments, along with growing demand from the local market, will support the industry’s already booming sales. According to the China Association of Automobile Manufacturers, 1.16 billion filters will be required annually by 2020.
Exports are also on the upswing. Based on customs statistics, China sent abroad $401.6 million oil, petrol, air filters for internal combustion engines during the eight-month period ended August this year. This figure represented 20 percent growth YoY. Shipment volume, meanwhile, increased 14 percent to exceed 245 million pieces.
Italy was the top export destination, with deliveries to the area generating $76.3 million. The US was the largest market in terms of volume, absorbing more than 47 million pieces.
To sustain growth further and keep an edge over competitors, some suppliers are preparing to boost sales to the OEM segment.
Okiya Group Co. Ltd and Rodeo Auto Parts Group are among the enterprises doing so. The former began to supply the sector in 2005 and now counts FAW as one of its major customers. At Rodeo, 10 percent of output goes to carmakers.
As regards pricing, China-made filters are 5 to 10 percent more expensive than they were six months ago due mainly to the increase in raw material rates. For instance, PP utilized in the end discs and shells of air filters reached $1,900 per ton in August, rising 2 percent from June 2010 levels.
In the next six months, suppliers plan on keeping current quotes. Some companies, however, forecast a 5 percent adjustment if the upswing in raw material costs continues. The appreciation of the yuan will also be a major influence.
There are more than 1,000 automotive filter makers in China, clustered mainly in Anhui, Zhejiang, Guangdong and Hebei provinces, and Shanghai. Output from these hubs constitutes 70 percent of the country’s turnout.
Read the full report on R&D on eco-friendly automotive filters at our Asia Sourcing business. Globalsources is a leading B2B portal and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
Smaller suppliers are augmenting rates as outlay rises. Large makers leverage financial capability to protect margins as they tamp down on prices.
Price competition among China suppliers of wind turbines will remain tight in the months ahead as companies contend with challenges.
Small makers are likely to raise quotes under efforts to protect margins amid the escalating cost of key raw materials and components, and the yuan appreciation.
These two factors have already bumped up production costs at Guangzhou Hongying Energy Technology by a dramatic 65 percent this year. Similarly, Liten Wind Power Co. Ltd augmented quotes by 15 percent in the first half of 2011.
Over the past months, copper costs have surged by nearly 30 percent while the deficit in rare earths has raised rates for magnets. The materials have been in short supply due to the China government’s clampdown on output and consequent closure of mines.
Insufficient financial and technological support and related government policies are compounding difficulties for small privately owned wind turbine makers.
Large businesses, meanwhile, are able to reduce quotes. Most of these manufacturers are SOEs or foreign-invested. Such operations have more capital than private companies, enabling them to protect margins in the face of price cuts. Even so, profits have thinned since 2008 due to rising material costs and pressure from downstream developers.
Stiff internal competition is also pushing industry giants to lower quotes as they strengthen exports. Suppliers are emphasizing international trade to prepare for a potential slowdown in domestic business. Demand from overseas markets could be three or four times higher than orders within China, according to Great Wall Securities.
Top-tier enterprises are leveraging their capability to make key components in-house as part of cost-control measures. By end-2010, the production cost of installed wind turbines for these companies fell from $615 per kilowatt to $592.Hardware & DIY trade show services
| Bright prospects
Pricing issues notwithstanding, China’s exports of wind turbines will stay on the growth track in the months ahead. Shipments in 1Q 2011 are already about six times higher YoY, according to Donghai Securities. In comparison, total overseas business in 2010 rose eightfold from the previous year. At roughly the same time, China became the largest provider of wind energy globally. Within a 12-month span, it boosted total installed capacity by 18,928MW, based on figures from the World Wind Energy Association. In 2010, China outpaced the US with 41,800MW in operation compared with the latter’s 40,200MW. Estimates this year place the country’s installed capacity at 55,000MW. In coming months, China’s wind turbine exports will target emerging economies as demand in traditional destinations plateaus. Asia represents the largest share of new installations at nearly 55 percent, followed by Europe at 27 percent. WWEA said orders from Eastern Europe are also on the rise. The Shandong Changxing Group expects exports of large wind turbines this year to increase 50 percent to 300 sets. The company shipped out 200 units in 2010, half of which went to Greece. The rest was split evenly between Israel and Pakistan. Shandong Changxing’s selection consists of 850kW to 1.5MW models. China Mingyang Wind Power Group Co. Ltd is working out exporting requirements that will enable it to ship 1.5MW wind turbines to Southeast Asia, Africa, North America and the EU. The product line was developed with Germany’s Aerodyn and already bears GL certification. “China Mingyang will be ready to accept the first export orders by the end of the year,” said Derek Wang, international division sales assistant. The supplier is one of the largest joint-stock operations in China offering wind turbines. It was established in 2006. To sustain business in their new markets, China makers have to focus on quality, said Meng Xian Jin, director of the China Renewable Energy Association. This is to ensure that wind turbines have a life span of 20 years. To stay competitive with multinational corporations, China suppliers have to emphasize low-end and midrange units even as they develop upscale versions, Meng added. At present, China companies’ differentiation strategies are largely price-based. Although labor and material costs there have increased, small China-made models are still 50 percent less expensive than units from overseas providers, and large units, 25 to 30 percent. Most large wind turbines from China adopt foreign technology. This is because domestic know-how is still relatively lacking when it comes to load calculation ability and various design aspects, including control systems, generators, gearboxes and bearings. China’s wind turbines industry is still in its infancy, with the majority of companies venturing into overseas business just four years ago. Small suppliers were the first to try exporting as large enterprises set their sights on domestic sales initially. Overall, international shipments consist of small wind turbines with output of 300W to 30kW. Units are suitable for utility grid connections and battery charging. Large companies offer primarily 850kW to 1.5MW, and 2, 3 and 5MW versions. |
Read the full report on rivalry squeeze China wind turbine prices at our Asia Sourcing business. Globalsources is a leading B2B portal and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
China makers are yet to respond to concerns over BPA in products other than baby bottles.
China suppliers are unfazed by growing calls in Europe to ban the use of BPA in various consumer products and the impact the move may have on exports.
In the past several months, concern over the substance’s toxicity hazards, which previously revolved around baby feeding products, has widened to other categories utilizing PC and epoxy resin. These include food and beverage containers, plastic kitchenware, plastic components in electronic devices, thermal paper receipts, and sports and leisure and medical equipment.
Fujian Hongbo Printing Co. Ltd manager Jack Chen has heard of recent findings regarding BPA levels in cash receipts, but said it is too early to address the issue.
This is because, at present, there are no international guidelines on BPA content in thermal paper, which according to China Paper Association secretary general Zhao Wei, is relatively low.The substance is added as a developer in the coating.
Meanwhile, Lin Ling, sales executive at Ningbo Yonglin Light Industrial Co. Ltd, said BPA has never been a concern. The maker offers surfboards that utilize epoxy resin for coating.
Lin added that she does not think the material will be banned as it has been used in the industry for decades.
The extensive adoption of BPA-based materials has prompted the European Consumers’ Organisation or BEUC to call for BPA to be added to the REACH Candidate List as an SVHC.The move was done in a March 2011 position paper and is a precondition for more stringent regulations covering the use of the substance.
BEUC also appealed to the European Commission to phase out BPA from consumer products in the next two or three years, provided there are safer substitutes.
Some BPA-free alternatives are already being utilized in China. PP, glass, PES and PPSU, for example, are used in lieu of PC to make baby bottles. This is in response to regulations in several export markets, including Canada, the US and the EU, banning the substance in feeding bottles.
Within this product line, PP has emerged as the primary option among the child-safe materials, although it is not without drawbacks. Compared with PC, PP is softer, warps under high temperatures and has low clarity.
High costs, meanwhile, are deterring PES and PPSU adoption.
As for other product categories, makers have yet to find suitable alternatives. Fujian Hongbo’s Chen said there is no substance that could replace BPA in thermal paper coating at present. Lin of Ningbo Yonglin said the same for epoxy resin.
Fujian Hongbo will consider adopting substitutes once these become available, depending on the cost of the materials and the impact on product prices.
Incompatibility with existing manufacturing processes is compounding makers’ difficulties. Generally, it will take supplierstwo or three years to adapt or upgrade procedures and equipment that can accommodate the new materials.
Preparing for the ban
Amid these challenges, China Paper Association’s Zhao said companies should keep an eye on BPA-related developments and be prepared to make the necessary adjustments to sustain business.
According to Tsang Hing Wo, senior technical services manager for SGS Hong Kong Ltd, alternatives are likely to emerge soon since the use of BPA is hotly debated. But bans, including those suggested by BEUC, should be scrutinized and such proposals should also be supported by scientific research.
The Hong Kong Centre for Food Safety said BPA has been used for more than 40 years in materials that come in contact with food with no known health risks.
Nevertheless, the CFS said food container manufacturers should provide instructions, including the intended use of the product, temperature specifications and restrictions on use.
According to Tsang of SGS, makers can stay on top of the issue through various channels such as publications from reputable institutions and organizations, and public forums.
Read the full report on Possible BPA ban at Globalsources, a leading B2B marketplace and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows. Read more on Asia Sourcing – How to do it right.
by Dan Harris in ‘China Law Blog’
Got an email from a client/friend yesterday with a link to an Industry Week Article and a note saying that I needed to give this “CLB’s dumbest article of the month award.” We do not actually have such an award (should we?) so for that reason alone, it is not in contention. Bad articles on China abound, but this one stands out because it is in a very influential magazine and because much of what it is wrong on has been repeated so often I fear it is beginning to pass for truth.
The article is in IndustryWeek Magazine and it is entitled, “Why Is China Cheaper?” It is written by Michele Nash-Hoff, President of ElectroFab Sales. She is also the author of the book, Can American Manufacturing Be Saved?
The main point of her article is that China manufacturing is cheaper than US manufacturing for reasons that go far beyond wage disparities. I do not dispute that point, but I do dispute much of what she says in support of that claim.
Her article starts out well by describing the costing differences between manufacturing a stuffed teddy bear and a Frisbee. Ms. Nash-Hoff points out that about 70 percent of the cost of manufacturing the teddy bear goes to labor, whereas the labor costs make up only around 20 percent of the cost of manufacturing the Frisbee. She then notes how because China deals in such massive quantities of the plastic resins that go into the Frisbee, its material costs for the Frisbee will be “as low as it could be.” I am not sure whether Ms. Nash-Hoff is saying that the plastic resins will cost less in China than in the United States and I am not sure whether that is true or not.
Ms. Nash-Hoff then tells us that labor is cheap in China because China has “one billion people living at the poverty level.” This is by far the highest number I have seen listed for those living at or below the poverty level in China but so be it.
As a result, wages have finally been rising by about 15 percent per year over the past four years. It took suicides by workers in the summer of 2010 to achieve additional improvement in wages and working conditions at plants that were more like prison camps with dormitories for workers to live on site and fences around the buildings so workers couldn’t leave the premises.
Okay.
This argument contains its own flaw. Wages in China have increased (fairly briskly) every year since the late 1980s and the average wage for workers in urban areas was four times higher in 2006 than in 1995. As Ms. Nash-Hoff herself points out, wages have been rising “by about 15 percent per year” since 2006. With these statistics, is it really fair to claim that it took “suicides by workers in the summer of 2010″ to achieve additional improvements in wages? Also, is she implicitly saying that it is not fair to the US that China has so many poor people and that those people should not be employed? Or is she saying something else?
Ms. Nash-Hoff’s third reason for China being cheaper is that China’s workers receive “nothing” when they are injured on the job:
Third, there are the costs of compliance to health and safety regulation and environmental regulations. These costs are less expensive in China than in the United States because the Chinese government imposes few health and safety or environmental regulations. China doesn’t provide workman’s compensation insurance for their workers so workers hurt on the job don’t receive any compensation when they are injured to the point that they are disabled.
Ms. Nash-Hoff is both right and seriously wrong in this argument. Of course the cost to comply with health and safety and environmental regulations is way less in China than in the US. I say “of course,” because even if China’s regulations were exactly the same as those in the United States and even if the enforcement of those regulations were exactly the same in China as in the US, compliance would still be considerably cheaper in China. Compliance would be considerably cheaper in China because medical care and wages (and pretty much everything else) are considerably cheaper in China than in the United States.
But beyond that, Ms. Nash-Hoff is right to claim that China does not enforce health and safety and environmental regulations nearly as rigorously as the US, but she is flat out wrong to claim that China does not have workers compensation when it does and she is also flat out wrong to claim that “workers hurt on the job don’t receive any compensation when they are injured to the point that they are disabled” because they almost invariably do. Again though, a worker who loses a finger in China might get $500 while a worker who loses a finger in the US might get $50,000. I wonder if Ms. Nash-Hoff is seeking an increase in workers compensation in China or a decrease of it in the US?
Ms. Nash-Hoff then argues that China’s VAT law works in its favor as against US manufacturing:
Next, there is the cost of taxes and duties. China is one of over 150 countries that utilize a Value Added Tax (VAT) system. It is a tax only on the “value added” to a product, material, or service at every state of its manufacture or distribution. The VAT rate is generally 17 percent, or 13 percent for some goods. Chinese companies receive a VAT refund from the government for materials of products produced for export. American imports to China are charged a VAT, but the US doesn’t have a VAT to charge Chinese imports.
Help me out here readers because I am just not seeing it. Maybe I am missing something here, but I do not see how China’s VAT has anything to do with its manufacturers being able to produce for less. I just do not understand how charging the VAT for domestic sales, but refunding it for exports reduces Chinese manufacturing costs. Could I not argue that the VAT actually increases manufacturing costs by reducing domestic sales and thereby making it tougher to achieve economies of scale? Is not this exactly what pretty much every country does with its VAT and exactly what US states do with their sales tax?
Ms. Nash-Hoff then makes a completely off-base factual argument that I am seeing and hearing much more frequently of late, which is that foreign companies cannot go into China without a Chinese partner:
In addition, the Chinese government requires foreign firms to have a Chinese “partner” company, who maintains the majority interest, takes most of the profits, and has the real control of the company.
This is just false. Completely 100 percent false. When I wrote a Wall Street Journal article on China Joint Ventures back in 2007, “only 27 percent of new foreign-invested businesses used this legal mechanism Joint Ventures in 2006, compared to well over 50 percent in 2001.” I would guess that percentage is less than 20 percent today. China allows foreign companies to go into China alone in just about all industries other than media, military and mining.
Ms. Nash-Hoff also gets it wrong when it comes to China R&D and technology sharing:
More seriously, China now requires US companies to share their technology and relocate their R&D centers to China if they want to have access to Chinese markets.
This statement is just so wrong I hardly even know how to attack it. First off, there are hundreds of thousands of US companies that have “access to Chinese markets” without having any presence in China at all. Every US company that sells a product or a service to China has “access to Chinese markets” and many (most?) of those companies are not even in China, much less sharing their technology and relocating their R&D centers there. Then there are the foreign companies in China that do no R&D there and zealously protect their technology. China does not require US companies set up an R&D facility in China or share their technology with China to have access to China’s markets. Apple Computer, KFC, The Gap, McDonalds, Price Waterhouse, and an endless list of other American companies that are thriving in China give lie to this bizarre claim. There have been instances of what Ms. Nash-Hoff describes (see the Chevy Volt), but fortunately, that it is not the norm.
Unsurprisingly, Ms. Nash-Hoff also attributes the China Price to China’s undervalued currency:
Above all, there is the ever-present currency manipulation, where China undervalues their currency by an estimated 30 to 40 percent, which simply makes every product that China ships out 30 to 40 percent cheaper than those of a potential American competitor.
I am not going to dispute that the Yuan is undervalued, but 30 to 40 percent seems high to me. Is it?
Lastly, Ms. Nash-Hoff talks about dumping and I am not going to fight her on that.
What do you think? Am I being too harsh on Ms. Nash-Hoff? Is she right?
I just think that with election season upon us, it is more important than ever that we get our facts right.
Read the full report on China being cheaper at our import export business. Globalsources is a leading B2B marketplace and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
China suppliers of automotive filters continue to focus product development on environment friendly models. This has yielded versions with reusable or biodegradable screening elements. The latest releases also feature better filtration capability to match market requirements for fuel efficiency and cleaner emissions.
At Fujian Lano Industry Co. Ltd, reusable and washable microfiber cotton is employed in select pieces. One of these, the model 1217 air filter, is suitable for turbo- and superchargers.
For the frame, the supplier utilizes a honeycomb structure made of chrome-plated steel, which expands the absorption surface area by 30 percent, resulting in improved throttle response. A new streamlined inner casing helps reduce the product’s overall weight and allows air to flow smoothly into the engine.
Another product, the 1223A model, has a carbon fiber shell. This feature makes the design lighter than metal counterparts.
G&W International Co. Ltd utilizes fabric from bamboo fiber in its model GC-CU2897 cabin air filter to boost filtration efficiency. For the GC-07010 model, activated carbon is adopted. Releases for oil and fuel employ South Korea-made paper.
Ningbo Saire Machinery Manufacture Co. Ltd provides air filters that can screen 0.1•m particles with 99.998 percent efficiency, in contrast to the 99.7 to 99.9 percent rate of other models.
These developments, along with growing demand from the local market, will support the industry’s already booming sales. According to the China Association of Automobile Manufacturers, 1.16 billion filters will be required annually by 2020.
Exports are also on the upswing. Based on customs statistics, China sent abroad $401.6 million oil, petrol, air filters for internal combustion engines during the eight-month period ended August this year. This figure represented 20 percent growth YoY. Shipment volume, meanwhile, increased 14 percent to exceed 245 million pieces.
Italy was the top export destination, with deliveries to the area generating $76.3 million. The US was the largest market in terms of volume, absorbing more than 47 million pieces.
To sustain growth further and keep an edge over competitors, some suppliers are preparing to boost sales to the OEM segment.
Okiya Group Co. Ltd and Rodeo Auto Parts Group are among the enterprises doing so. The former began to supply the sector in 2005 and now counts FAW as one of its major customers. At Rodeo, 10 percent of output goes to carmakers.
As regards pricing, China-made filters are 5 to 10 percent more expensive than they were six months ago due mainly to the increase in raw material rates. For instance, PP utilized in the end discs and shells of air filters reached $1,900 per ton in August, rising 2 percent from June 2010 levels.
In the next six months, suppliers plan on keeping current quotes. Some companies, however, forecast a 5 percent adjustment if the upswing in raw material costs continues. The appreciation of the yuan will also be a major influence. There are more than 1,000 automotive filter makers in China, clustered mainly in Anhui, Zhejiang, Guangdong and Hebei provinces, and Shanghai. Output from these hubs constitutes 70 percent of the country’s turnout.
Read the full report on R&D on eco-friendly automotive filters at our Asia Sourcing business. Globalsources is a leading B2B portal and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
Suppliers are building core competence to reduce dependence for components on foreign companies.
LED chip suppliers in China are slowly advancing core technology in a bid to catch up with foreign makers. At present, the country obtains 80 percent of upscale chips overseas as local production is hindered by high equipment and raw material costs.
Huazhong Science University has reached an agreement with Guangdong Real Faith to develop the technology to produce semiconductor lighting chip equipment. The $77.5 million project is scheduled to begin trial operation this year. This comes as China’s LED industry ventures into the upstream chain and boosts large-scale production. Daunted by steep manufacture costs, enterprises currently limit output and focus on the low end. For instance, MOCVD equipment, which is key to producing semiconductor lighting chip, is typically sourced from foreign providers. A unit is valued at $2 million.
The major suppliers are US company Veeco and Germany’s Aixtron. Their combined MOCVD shipments are forecast to hit 662 units in 2011, equivalent to overall deliveries in the past three years. The supply, however, is inadequate given strong demand, with orders for 2012 now settled.
The shortage of equipment and rising raw material expenditures pushed up LED chip and epitaxial silicon costs.
With continued advancements in local technology, however, production outlay may decrease, allowing makers to pursue high-end variants. This, in turn, can reduce China’s dependence on imports. Guangdong province accounts for 70 percent of domestic LED packaging.
The local LED display industry is also on the upswing as indicated by continued advancements in the line spurred by a growing user base. In 2010, the sector rose 35 percent YoY, with total sales value hitting $3 billion. The annual growth rate for the past five years is pegged at 40 percent.
Demonstrating the segment’s rapid expansion is the adoption of homegrown LED applications in international events hosted by China. These include the 2008 Beijing Olympics and last year’s Guangzhou Asian Games and Shanghai World Expo. Beijing Century Chengtong’s Harmony Central featured in the last highlights a double-ring LED display screen. Shanghai Advanced Photonics also showcased its transparent LED panel at the event. The model was developed using LED display and architecture technology.
Manufacturers have likewise introduced models boasting better performance and specifications. Beijing Leyard has launched large-size and high-brightness LED TVs, while Shenzhen Ledman unveiled its Black Beauty series with an enhanced contrast ratio. Shenzhen Unilumin, on the other hand, has improved the power-saving features of its LED display lamps. Regarding production processes, SMD stick technique has become popular for indoor LED display units.
China makers are also actively securing patents for their models. Applications have already reached more than 1,000, about 800 of which have been approved.
The country has more than 1,000 LED suppliers, with 300 accredited by the China Optics & Optoelectronics Manufactures Association. Aside from LED display, most companies offer related products. Manufacture is chiefly conducted in the southern and eastern parts of the country, particularly in Shenzhen, Guangdong.
Read the full report on LED chip sector at at our import export business. Globalsources is a leading B2B marketplace and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
I have a query regarding payment terms in China. Is it normal to pay 50% with purchase order and the balance prior to dispatch?
ANSWER:
This is very normal for a first order with a new supplier. But everything is a negotiation and there is no fixed payment format that is applicable nationwide or industry wide. Sometimes buyers get better terms (for example, 30 up front and 70 upon delivery) but I suspect the unit price would reflect this.
In other words, if you are paying one supplier a bit more upfront and another supplier less upfront, all other things (quality, lead-time, service…) being equal, you can expect to pay a bit more per unit for better payment terms.
Couple of tips.
1. If you don’t ask for better terms they will not be offered to you. So go ahead and ask for something better, it can’t hurt. If this is your first order, then the supplier may also be concerned about you defaulting on payment, just like you are concerned they will mess up your order. Build trust over time and with each order ask for better and better terms. For example, on this order you may say something like “I’ll accept your 50-50 terms for this initial order, but I plan to pay on time and I plan to order regularly. So on the next order I want 30-70 and the order after that I would like 30-70 net 15.”
2. Far more important than worrying about 50-50 vs. 30-70 on the first order is to make sure you have a plan for linking payment to performance. If you catch quality problems after the final payment has been made, it really doesn’t matter what the payment terms were as it is too late to fix things. It is essential that you or a trusted 3rd party (called an “inspection agent” or “3rd party QC”) visit the production line to inspection the goods BEFORE you make that final payment. If you have not done business with this supplier before, then it is a good idea that you or a trusted 3rd party conduct an audit on the supplier to ensure they can produce what they have promised.
Read the full report on Payment terms in China at our import export business. Globalsources is a leading B2B marketplace and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
Food processor suppliers step up product features to match diverse food preparation requirements.
Performance enhancements in China’s food processors are yielding multifunction types with specialized blade mechanisms and larger capacity backed by an increased power output. Suppliers are boosting user convenience with low-noise, ergonomic and handheld versions, and boosting visual appeal via colorful housings.
Some releases utilize interchangeable disc blades for various preparation and cutting options, including julienning, grating, slicing, shredding and dicing.
The SHGL800 and SHGL805 models from Ningbo Shunhui Electric Appliance Co. Ltd have components yielding portions of a particular size. The maker also incorporates two double-blade systems in its upside-down twin-bowl design. Additional plastic cutters in the middle of the shaft are detachable and help push food to the bottom faster.
Double- and quad-blade mechanisms are suitable for mincing.
Many of the latest versions have dual power bases with individual work bowls to support simultaneous functions. These deliver between 800 and 1,000W, at least double the usual 300 to 500W.
One example is Gemboo Electrical Appliances Mfg Co. Ltd (Huizhou)’s 1,000W GM-7080 model. It comes with a 2.5L bowl and a 1.8L blenderjar.
Releases featuring less noise adopt an upright construction. Blue Era Electric Appliances Ind. Co. Ltd’s food processors now deliver 70dB from the previous 80dB. This is despite the units’ increased power output of 250 to 600W.
Compared with upside-down twin-bowl designs, the vertical configuration generally utilizes fewer materials, resulting in price markdowns. In the case of Blue Era’s models, prices are 8 percent lower. Foshan Gales Electrical Appliance Co. Ltd, on the other hand, offers versions of the former type only, branching out from its line of juicers and blenders earlier this year.
For increased user convenience, several upright alternatives highlight ergonomically shaped power bases as well. Instead of front or sideswitches, operating knobs are placed on an inclined panel. In addition, some units have built-in drawers for storing accessories such as extra disc blades.
Meanwhile, food processors in a handheld configuration are being produced in greater quantities. These releases may run on DC batteries. Similar upcoming models from Ningbo Shunhui will feature lower rotation speeds, which would aid in preserving nutrients, reducing noise and lengthening product life span.
To achieve better aesthetics, makers are applying pearl coatings on work bowl handles and power base housings. Colors may vary.
Foshan Gales uses yellow on two models. Another supplier has a red option with four wheellike feet in a similar finish. The latter resembles a car.
As for materials, companies are increasingly employing high-end variants in upscale food processors. Stainless steel replaces ABS for housings in the category, raising prices
20 percent.
One out of the four 2011 releases from Foshan Gales comes in the former material. The metal will also be utilized in more units from Guangdong province-based Blue Era to add to its current 250 and 1,000W selection. The maker likewise offers an alternative in plastic that features a decorative stainless steel switch panel.
Transparent plastic is being replaced in high-end work bowls as well. Tempered glass is now preferred. This matches housings in stainless steel as seen in Global Union’s latest releases.
Despite the increasing popularity of upscale materials, several manufacturers are utilizing low-end alternatives to avoid rising raw material costs, particularly for their entry-level models. Gemboo, for instance, is employing PP instead of ABS in casings, while substituting AS with GPPS in work bowls.
Configurations & materials
China suppliers offer food processors with single and dual power bases, and upside-down versions that have none.
The first category dominates output. Products in this segment come with a set of interchangeable cutting discs, a blender jar or both. Such releases utilize Sabatier blades that are S-shaped.
Featuring increased functionality, units with two power bases accommodate a work bowl and a blender jar. These releases may include replaceable metal discs on top of double- or quad-blade systems, which are likewise incorporated in upside-down models. The latter versions do not run on power bases because their motors are installed in the lids of one or twin bowls.
For the housings, companies utilize ABS the most. Low-end versions adopt PP, while upscale counterparts are in stainless steel of several grades, including 201 and 304. A number of makers employ die-cast aluminum, which is even more expensive.
Food-grade transparent plastic is often used for the work bowls. Examples in ascending order of cost are GPPS, AS and PC. The second type dominates. High-end designs are made of tempered glass.
The popular material for metal blades is 304 stainless steel. Some manufacturers, including Foshan Shunde Shun Ling Refrigeration Kitchenware Equipment Fty prefer the 420 variety. A sharper, lighter and more upscale option is titanium alloy.
Read the full report on Food processors at our import export business. Globalsources is a leading B2B marketplace and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
Light and audio functions, and nontraditional motifs invigorate the line.
Electronic features are increasingly adopted in China’s holiday decorations sector, particularly in the high end, as suppliers boost profit margins. Meanwhile, modified shapes and themes spice up traditional designs.
In line with the former trend, more upscale models pack audio functions such as built-in voice recorders and music playback. Lighting effects are found in several jack-o’-lanterns and ghost figurines. Some utilize LEDs and double as lamps.
Electronic features, however, push up costs and are therefore limited to high-end releases. Because of this, companies predict traditional adornments, including ghosts, skeletons, pumpkins and hearts, will still dominate owing to their competitive prices. For such products, suppliers concentrate on aesthetic variety instead to stir interest and expand buyers’
options.
To illustrate, diverse facial expressions enhance the visual appeal of typical ghost pieces and jack-o’-lanterns. Besides the expected scary and angry countenance, and black or bloody clothes, a number of versions look happy and are smiling. For other occasions, models in the shape of kiss marks, eggs, rabbits and Cupid are increasingly being offered.
These items are often produced using machines, but several manufacturers are releasing manually crafted holiday decorations to widen selections. Wreaths are fully or partly handmade, while pumpkin lamps and Easter eggs may be painted manually.
Prices are greatly influenced by the design. Halloween ornaments in the low end comprise simple pieces such as stickers, pendants and keychains. They are smaller than 6cm and go for $0.30 to $1.20. Paper, PVC, and epoxy resin are among the material options.
Midrange versions are quoted between $1.25 and $2. These are 6 to 13cm and come as stickers, figurines and tabletop accessories.
High-end models are larger, and some may boast added functions and double as a light source, voice recorder or music player. Prices exceed $2.
For other holiday decorations, including Easter and Valentine’s Day ornaments, the low-end segment consists of small stickers made of inexpensive paper, acrylic, cotton, nonwoven fabric and epoxy resin. The items are suitable for windows, lamps, bags and cars, and come in solid or multiple colors. They list below $1.
Cups, mugs, shopping bags, tabletop accessories and manually crafted pieces belong to the midrange market. These go for $1 to $5.
Large handmade adornments such as wreaths, and Easter eggs and rabbits are common in the high end. Most use materials derived from nature, including pine branches and wheat straw. Quotes are above $5.
Although stiff competition curbs price increases, suppliers anticipate markups of between 10 and 15 percent in the following months due to rising costs. Besides continuing inflation, the yuan appreciated by more than 2 percent in the past half-year. In addition, labor outlay in the coastal areas, where production hubs for holiday decorations are located, climbed over 20 percent.
Since the line is highly seasonal, most industry players offer other items, including synthetic flowers and plants, keychains and printing services. Trading companies boast greater flexibility in catering to clients’ requests and account for 60 percent of the supplier base. More makers plan to obtain export rights to expand services.
Read the full report on Halloween decorations at our Asia Sourcing business. Globalsources is a leading B2B portal and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows.
New models double as MP3 players and mini speakers, and come in novelty shapes.
China makers are offering promotional digital clocks in a wider range of features and designs.
Typically, models have two to four functions, including date and day display, 12/24hr format and world time. Some versions show moon phases as well.
To expand usability, suppliers are incorporating ICs that enable releases to measure temperature and humidity, and double as radios and calendars. Such add-ons do not entail any modification in the housings’ structure, pushing up prices minimally. Each feature raises quotes by $0.50 to $1.
A number of timepieces can also work as MP3 players, mini speakers, flashlights and compasses. Digital clocks that serve as mobile phone chargers are often fitted with PV panels.
To integrate these features, however, companies need to change the shape of casings. This requires the creation of new molds, which costs $4,000 to $10,000, resulting in higher prices.
In terms of appearance, manufacturers are deviating from the conventional rectangular and square versions.
Many are launching designs in novelty contours such as cartoon characters and sports balls to break product homogeneity.
Desktop models dominate China’s output and exports of promotional digital clocks. Releases for travel and wall mounting are offered as well. The former are often foldable.
The materials, additional features and logo application method are the main price determinants.
Low-end versions go for $0.05 to $2. They tell only time, date and day, and come in small variants.
Housings are made of ABS, and available in a rectangular or square design. Patterns are often silk-screened or heat-transfer printed.
Besides the above functions, midrange items display temperature, relative humidity and moon phases, and boast alarm, snooze, world clock and countdown timer capability. Many models also double as AM/FM radios.
For casings, ABS and PC/ABS are utilized. The latter imparts greater durability and raises quotes by 30 percent. Silk-screening, heat-transfer printing and embossing are the common logo-placement techniques. Products list at $2.50 to $8.
High-end versions have the same features as midrange counterparts. To be different, MP3 players, mini speakers, flashlights and projectors are incorporated. Because of these features, the housing structure is often modified, adding to the final prices. Quotes for such designs exceed $8.
In the next six months, rates of China-made promotional digital clocks are expected to increase between 10 and 15 percent. Appreciation in the yuan’s value against the US dollar and other foreign currencies, and climbing labor expenses are the primary factors triggering this forecast.
Read the full report at Globalsources, a leading B2B marketplace and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines and trade shows. Read more on Asia Sourcing – How to do it right.