Research in China http://www.marketresearch.com/ResearchinChina-v3266/ Publisher Sample Phone: 800.298.5699 (US) or +1.240.747.3093 or +1.240.747.3093 (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST Email: [email protected] MarketResearch.com Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 4. Export 4.1 Export Scale The increasingly rising labor cost in developed countries brings with massive industrial restructuring in global terms, with the manufacturing and production transferring from developed economies to developing ones. At present, China has become a major production base and exporter of stainless steel tableware and kitchenware in the world. In 2006-2009, low-end stainless steel tableware and kitchenware were increasingly eliminated from the market with the export volume witnessing downward mobility. In 2010, the global economy rebounded following two-year-long heavy blow. Thanks to pump-priming packages released by governments of all countries, the market demand was greatly boosted. As a result, China’s export volume of stainless steel tableware and kitchenware witnessed a massive year-on-year rise of *** in the year. However, as more demanding food safety standards have been launched in many countries since 2011, safety criterion targeting stainless steel tableware and kitchenware becomes more critical. Coupled with the positive effect of stimulus polices on the demand promotion fading away, the export volume in 2011 and 2012 dropped again. Export Volume and YoY Growth Rate of Chinese Stainless Steel Tableware and Kitchenware, 2006-2015E (kt) Source: China Customs 2 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 In 2006-2012, the fluctuation in export value of stainless steel tableware and kitchenware went hand in hand with that in the export volume in the main. The slight difference was that the year-on-year growth in export value surpassed the year-on-year rise in export volume due to the rising cost and growing export proportion of high-and mid-range products. Export Value and YoY Growth Rate of Chinese Stainless Steel Tableware and Kitchenware, 2006-2015E (USD mln) Source: China Customs 4.2 Major Export Destinations China’s stainless steel tableware and kitchenware are mainly exported to Europe. In 2012, the tableware and kitchenware import volume of the UK and France from China dropped to some extent, but the rising demand from Holland, Russia, Belgium and other countries filled the gap. In 2012, the export value contributed by China’s top 10 stainless steel tableware and kitchenware export destinations amounted to USD***, accounting for *** of the total. In particular, the export to the US amounted to USD***, standing at *** of the total, followed by Germany’s USD *** or ***. Among Asian countries, Japan and Hong Kong of China moved into the front ranks, with the proportion in export value standing at *** and ***, respectively. 3 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 Top 10 Export Destinations of Chinese Stainless Steel Tableware and Kitchenware by Export Value in 2012 (USD mln) Source: China Customs In terms of export value, South Korea and Japan are among the largest Asian importers of stainless steel tableware and kitchenware from China. Also, Saudi Arabia and UAE in the Middle East have become large export destinations due to their strong spending power. Stainless steel tableware and kitchenware made in China exported to the US are required to meet CMA standard, UL authentication, etc. In addition, European countries set up a series of demanding industrial standards and product authentication system such as CE safety certificate, EN 12983-1, ENEC, etc. For Germany, in particular, additional LFGB authentication and GS marking are also required. 4 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 6. Chinese Enterprises 6.1 Supor 6.1.1 Profile Zhejiang Supor Co., Ltd. Website www.supor.com.cn Establishment 1998 Registered RMB634.5 mln Workforce 6,782 Capital Address Yuhuan, Zhejiang Listing 2004; Shenzhen Hit Kitchen appliances, cooking Stock Code 002032 Products utensils, etc. Supor has five major production bases in Yuhuan, Hangzhou, Shaoxing, Wuhan and Vietnam. Supor's cookware and home appliances are sold to many countries around the world. With the gradual expansion of the product line, Supor has been involved in three major fields, namely cookware, small appliances and kitchen appliances, with 800 categories of products. Supor has ranked first in market share of pressure cookers, woks and stainless steel pots in China for many years; it also has acquired significant market share in rice cookers, electric pressure cookers and induction cookers. Supor’s Five Major Production Bases and Major Products Production Base Hit Products Market Orientation Wuhan Supor Cooking Utensil Cooking utensils Primarily domestic market Zhejiang Supor Household Electrical appliances - Appliance Manufacturing Zhejiang Shaoxing Supor Small household 1/3-1/2 domestic Household Appliances appliances for kitchen market and bath Supor (Vietnam) Cooking utensils, Southeast Asia household appliances Yuhuan Production Base Cooking utensils Mainly for export Source: Zhejiang Supor Co., Ltd. 5 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 6.1.2 Operation Due to depressed global economic situation, the revenue of the company dropped by *** year-on-year in 2012, with the net income falling by *** year-on-year. In Feb. 2012, its stainless steel cooking utensils were claimed to be tainted with excess manganese. But the rumors were ruled out following the release of the test results by China National Center for Food Safety Risk Assessment. After the incident, the company’s market position in the cooking utensil field was quickly restored thanks to its responsible brand image. As of Feb. 2013, its market share drove up to a record high of ***. In 2012, the company speeded up its channel layout in the third-and fourth-layer markets, and built up ***-odd new outlets in regions at county and township levels. Meanwhile, it made intensified efforts to develop modern channels. In 2012, its e-commerce sales surged by *** year-on-year. In 2013, the company’s competitiveness in the small household appliance market is becoming much stronger. In Feb. 2013, the market occupancy from its electric appliance business realized a record high of ***, thanks to the backup from SEB. Revenue and Net Income of Supor, 2009-2013 (RMB mln) Source: Zhejiang Supor Co., Ltd.; ResearchInChina 6 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 6.1.3 Revenue Structure The primary businesses of the company are small kitchen appliances and cooking utensils. In 2012, the revenue from cooking utensil business made up *** of the total, while the revenue from electric appliance stood at around *** of the total. Compared to 2011 revenue structure, the proportion from electric appliance business rose by two percentage points, while that from cooking utensil business fell by one percentage point. And it is projected that the company’s position in China’s electric appliance market will get further boosted with the technology and order support from SEB. Revenue of Supor by Product, 2009-2012 (RMB mln) Source: Zhejiang Supor Co., Ltd.; ResearchInChina Due to the global macro-economic recession, Supor hit a twin drop both in domestic and foreign trade value in 2012. In particular, the revenue from the domestic market dropped by *** year-on-year to RMB***, while the revenue from overseas market fell by *** year-on-year to RMB***. Despite of the sluggish foreign demand market, the company’s export to SEB maintains stable growth, up *** year-on-year all the year round. Thanks to SEB, the foreign trade business performance of Supor continued with stable progress, and the competitiveness of its domestic bases are greatly improving. 7 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 Revenue of Supor by Region, 2009-2012 (RMB mln) Source: ResearchInChina 6.1.4 Gross Margin Great efforts were made to follow the product innovation concept and improve the products’ sales mix in 2012. As a result, the product profitability of the company has been further consolidated. In addition, the gross margin of the company rose by *** percentage points year-on-year benefiting from the raw material cost slash. Gross Margin of Supor by Product, 2009-2012 Source: Zhejiang Supor Co., Ltd.; ResearchInChina 6.1.5 Performance Prediction In 2013, along with the recovery of global macro-economy, the domestic and overseas businesses of the company are expected to see restorative growth. According to the estimations, the company will resume its double-digit growth pace in 2013. 8 Global and China Stainless Steel Tableware and Kitchenware Industry Report, 2013-2015 Revenue and Net Income of Supor, 2012-2015E (RMB mln) Source: ResearchInChina 9 .