Desk fans: Changes spur positive outlook |
| Monday, 17 August 2009 | |
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Rising demand in emerging markets, lower material costs and higher tax rebates are enlivening the industry.
Industry conditions are again becoming favorable for China's electric fan suppliers after a period of difficulty resulting from the global economic slowdown. This has prompted upbeat projections, with companies anticipating a 20 to 30 percent increase in sales this year.
At some companies, shipments to the last two destinations have risen 20 percent over 2008 figures. To cater to the needs of these markets, makers are shifting their focus to low-end models with basic features. Several suppliers are even setting up design centers in emerging economies. Large manufacturer Homstar Electrical Appliances Co. Ltd, for example, has established a product development facility in Iran in cooperation with Alooni. Reduced material costs, meanwhile, are enabling suppliers to minimize spending and, consequently, keep a tight rein on prices. Another factor driving optimism in the line is the recent increase in the export tax rebate to 15 percent. Prior to this adjustment, companies received a refund of only 9 percent. Range of products Desk and stand models dominate China's exports of electric fans. Wall, box and tower types are also available. The common sizes for desk versions are 6, 14 and 16in, while stand fans are offered in 12, 14, 16 and 18in versions. Prices are mainly determined by the housing and blade material, with typical products employing plastic for both. Operational capability and extra functions also impact quotes. Most low-end units have blades in locally sourced PP, which is more prone to cracking and deformation than other types. Some releases only perform horizontal oscillation. Prices are between $3 and $8. Such models generally have motors made of cold-rolled steel or silicon steel plate. Components are usually purchased from domestic specialists. Some versions employ tinplate motors, which have inferior magnetic permeability and a shorter service life. For these parts, companies can also combine copper with aluminum to reduce costs. The majority of midrange products adopt plated iron or ABS grilles and housings, while blades utilize ABS or transparent AS. PP, which may be procured domestically or overseas, is an alternative for shells and blades. Motors come mostly in locally sourced cold-rolled steel. Small components such as timers and switches are often plated. The models are multispeed, wide-angle units capable of horizontal and vertical movement. Remote controls, LED screens and low-noise operation can be added. Quotes are $9 to $15. For high-end electric fans, housings and grilles come in ABS or C25 steel sourced from Taiwan. Blades are made of imported AS or ABS. Prices may top $40. Five speed settings and timer functionality are typical, as are horizontal and vertical oscillation. Futher, some upscale units are equipped with an LCD or VFD, ionizer, ozone generator, and digital and remote controls. Warm air can be released as well. Demand for tower fans has been growing in recent months. These compact products boast a sophisticated wind curve profile that provides maximum air distribution. To boost sales further, a number of suppliers are now offering a five-year limited warranty. Typical units have three low-noise speed settings. Some are capable of simulating a natural breeze in different strengths. They are 32 or 40in tall and are fitted with a recessed carrying handle. Most are priced above $10. Models may incorporate touch-sensitive LCDs, a programmable digital thermostat, ion-generation capability and timers for 1 to 12 hours. The addition of a washable filter, which helps reduce airborne dust and pollen particles, is also a growing trend. The remote controls of some products have a built-in flashlight to facilitate operation in the dark. Multifunction tower fans are being offered as well. These can employ adjustable thermostat controls that enable use as a heater. Select high-end versions boast air purifier functionality. Further, some suppliers are releasing miniature units suitable as gift and promotional items. Most tower fans require two motors that operate simultaneously. As such, the line is often manufactured by midsize and large companies capable of investing more in R&D. Homstar, however, has patented a system that enables models to use only one motor. China-made electric fans meet various international safety standards. These include CE and EMC in the EU, GS of Germany, Japan's PSE, CSA of Canada, and ETL and UL for the US. In addition, export products must come with testing results obtained from local inspection agencies for examinations performed according to domestic parameters. An electric fan reaching 125W in power, for example, must comply with GB 4706.27-92. This article "Desk fans: Changes spur positive outlook" is originally posted in Global Sources. Contact suppliers in this article
Ningbo Homstar Electrical Appliances Co Ltd Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed. Disclaimer: 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. 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.
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