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Wednesday, 13 May 2009 19:37

Kitchenware suppliers in China are taking a number of steps to keep export sales afl oat 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.


Sourcing Report: Kitchenware  
Release Date: Apr 2009

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Executive Summary

Kitchenware suppliers in China are taking a number of steps to keep export sales afl oat 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 in novelty 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.

This report covers cookware, bakeware, food storage containers, and kitchen utensils and knives' China's major kitchenware segments.

For each product, the report details the latest design trends, materials and surface treatments employed by makers. It also highlights key factors that influence the export price and quality of low-end, midrange and high-end releases. The industry composition and export hubs of each product category are likewise discussed here.

Projections for the next six to 12 months on prices, overseas sales, capacity expansion plans and R&D focus are detailed in the Supplier Survey.

The Industry Overview section stresses the key issues affecting China kitchenware exporters, and their means of coping with these challenges. It also provides information on Guangdong and Zhejiang provinces, the key sourcing centers.

Reflecting the industry structure, nearly 60 percent of makers interviewed for this report are located in Guangdong, while about 30 percent come from Zhejiang.

The majority of these companies are manufacturers with direct export rights.

Further, close to 90 percent of the featured suppliers are mainland Chinaowned, and the other are publicly listed, and US- and Hong Kong-invested. Many of them have been offering kitchenware and related home products for 10 to 20 years, and are OEMoriented.



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All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.

 

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Apr 2009
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