Affected by the global spread of the COVID-19, the rapid growth of overseas "housing" economy has brought more opportunities for the export of Chinese household appliances, among which the export of small kitchen appliances is particularly impressive.
During the investigation and interview process by the Daily Economic News reporter, it was found that in the household appliance industry, some enterprises that produce kitchen appliances such as coffee machines, microwaves, ovens, and bread makers have a particularly noticeable sense of recovery in external demand, with a significant increase in the second half of the year.
"Since the second half of the year, the export of kitchen small appliances has basically been in a 'explosive' state, especially coffee machines. The demand in the European and American markets is very high, with a year-on-year growth of at least 20%." Ms. Mai, who is responsible for overseas business at Guangdong Xinbao Electric Appliance Co., Ltd., told a reporter from Daily Economic News.
"The company operates at full capacity."
Ms. Mai told reporters that at the beginning of this year, due to the impact of the epidemic, the company's export business was quite difficult, especially due to logistics congestion, resulting in customer refunds. "At that time, we had goods, but we didn't ship them in containers. Some customers needed to consolidate their shipments, and drivers had to go to different places to pick up the goods. The waiting time was too long, and there were also situations where there were temporary fees or even tips added."
"Since April, some overseas merchants have reported to us that they have insufficient inventory and demanded that we accelerate our order making and placing. That is to say, since April, the company's export orders have shown a year-on-year positive growth. Since June, the production lines of small kitchen appliances such as coffee machines and ovens have basically been operating at full capacity." Ms. Mai told reporters that in the first three quarters, the company's revenue increased by about 33% compared to the same period last year, Overseas sales revenue increased by 25% compared to the same period last year.
Ms. Mai also shares a similar feeling with Manager Lu of Guangdong Galanz Group Co., Ltd.
Manager Lu stated in an interview with the Daily Economic News that the company's export orders in May had already increased by over 40% year-on-year, and since the second half of the year, some months have even seen a growth rate of 60%, indicating a clear trend of recovery.
Manager Lu said that after the outbreak of the epidemic, the company started construction in mid February, which was also one of the earliest companies to start construction in Zhongshan City. In mid March, overseas customers placed orders one after another, but the volume was not large. Nevertheless, the company still began to recruit from the public, including arranging charter flights to bring back employees from other provinces. It took nearly a month to overcome the difficulties in the resumption of work structure.
"Another issue is that the external factories in the supply chain have not started construction. 80% of the materials supplied by Galanz are supplied by itself, which is also an important reason for the company's rapid increase in production capacity after the domestic epidemic situation improved." Manager Lu introduced that in the first and second quarters, the external factories had insufficient manpower, difficult capital operation, and the materials could not be transported. The company settled on a monthly basis, and all payments were made in cash, To a large extent, it ensures the smooth supply of the industrial chain.
Microwave ovens set a record for export value
The Daily Economic News reporter analyzed customs data and found that, taking microwave ovens as an example, monthly exports have basically shown a trend of monthly recovery since March this year. From March to August, the monthly export amount all ranked in the top ten of historical data, with historical records of export amount set in April, July, and August.
"The significant rebound in overseas orders came after April, especially for microwave ovens. Although the epidemic was severe in the United States, the situation of home appliance consumption was still very good. From April to June, microwave oven export orders achieved a significant increase, with the entire North American market growing by over 40%, while the proportion in the United States exceeded 50%." Manager Lu said.
According to statistics from iMedia, the frequency of household appliances usage has significantly increased during the epidemic, and overseas demand for various products has significantly increased. For example, in the first half of the year, China's exports of electric fryers, bread makers, juicers, and other products increased by 62.9%, 34.7%, and 12.1%, respectively, becoming a growth highlight.