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Appliances with multiple functions are in demand. |
Small electrical appliances are finding a promising market in Wuhan. For a start, the city has huge capacity, with over 100,000 households replacing their kitchen equipment each year over the next 10 years.
Compared with the cut-throat competition for big ticket electrical items, small appliances have the advantage of greater diversity of brand, lower production costs and prices, and short replacement cycles.
More important is that these appliances represent a high profit margin. Although small appliances account for only a tenth of total electrical sales, margins are nearly double those of large appliances.
People also tend to aspire to kitchen systems they can use easily after they decorate their homes.
Kitchen systems that have gas rings, hoods, sterilisers, microwave ovens, dishwashers and other small appliances or utensils form kitchens which are convenient to use and attractive to work in, with enhanced design and colour.
Wuhan people are much more demanding than they were. Their lifestyles are also more diversified.
In summer, office workers like a humidifier to protect their skins while working in an air-conditioned environment.
Chinese breakfasts take too long to prepare. Many office workers simply prefer toast, a boiled egg and a glass of milk.
The more trendy types also go for electrical appliances like steam irons to look neat in the office and electric rollers for their hair.
There are many Hong Kong manufacturers of small electrical appliances and their products have both an enviable reputation and design.
Factors such as price, trading habits and complicated 3C certification procedures on the Mainland have up to now not been particularly attractive to these producers, but as Mainland consumers increase their spending power and trade procedures become more simple, conditions are increasingly more inviting for sales.
from Linda Li, Wuhan Office
(Image courtesy of Xinhua News Agency)
