China exports 1.29 million electric blankets a month.
Autumn has arrived in the northern hemisphere, and Europe with higher latitudes has already felt the coolness of autumn. With natural gas supplies limited and prices skyrocketing, Europeans have to look for other heating methods to cope with this year’s cold winter, such as purchasing wood and coal. At the same time, a large number of Europeans are also turning their attention to China. Even though winter is relatively cold, most places do not yet have centralized heating equipment. Various heating equipment produced in China have become their new choice.
Any ripples in the international trade market may be sensed by keen capital. Recently, Caihong Group (003023.SZ), a long-established listed company of small home appliances, suddenly became popular. On September 22, the stock rose straight up in early trading and hit the daily limit again. It achieved its second consecutive daily limit, closing at 23.84 yuan/share, a record high in the past year. new highs. In fact, in the past three months, Rainbow Group’s cumulative gains have exceeded 40%.
Rainbow Group Co., Ltd. responded
On the evening of the 22nd, Rainbow Group issued an announcement on abnormal stock trading fluctuations. The announcement stated that there have been no major changes in the company’s operating conditions and internal and external operating environments recently, and the company’s production and operations are normal. The company’s products mainly include household flexible heating appliances such as electric blankets and electric hand warmers, as well as household hygiene and insecticide products such as electric mosquito repellent liquid and electric mosquito coil sheets. The products are mainly for the domestic market. In order to promote export business, the company has established an overseas market development department and service team to engage in product export business. This year, some export orders for electric blankets were obtained. The number of individual orders was low and the overall amount was small, which did not have a substantial impact on the company’s revenue.
Information shows that Chengdu Rainbow Electrical Appliances (Group) Co., Ltd. is a company that develops, produces and sells a series of household flexible heating appliances such as electric blankets and electric hand warmers, as well as a series of household sanitary and insecticidal products such as electric mosquito repellent liquid and insecticidal aerosols. A sales-oriented enterprise group, it is the leading enterprise in my country’s electric blanket industry and a key backbone enterprise in the household hygiene and insecticide industry.
Data from the China Household Electrical Appliances Association shows that against the backdrop of declining exports of most home appliances to Europe in 2022, categories such as air conditioners, electric water heaters, electric heaters, electric blankets, and hair dryers have bucked the trend, with cumulative exports from January to July The sales scales were US$1.99 billion, US$130 million, US$490 million, US$33.4 million, and US$160 million respectively, among which electric blankets outperformed others with a growth rate of 97%.
According to the Securities Times, data from the General Administration of Customs also confirms the surge in demand for electric blankets in Europe. In January this year, the monthly number of Chinese electric blankets imported by the 27 EU countries was 189,000, which increased to 521,000 in June, and quickly climbed to 1.29 million in July, a month-on-month increase of nearly 150%.
On September 13, Caihong Group said in an interactive exchange on the Shenzhen Stock Exchange: “At the current time of the European energy crisis, electric blankets will have certain opportunities as energy-saving and environmentally friendly products. Since May, the company has received many export orders for electric blankets.”
The background of the hot sales of heating equipment in China is that Europe is about to face a new round of energy challenges for winter heating. As energy prices soar, unaffordable bills force consumers to look for more energy-efficient methods. There are even reports that some European buyers have begun hoarding firewood for winter heating as early as the summer, causing firewood prices to soar in many places in Europe.
European importers are filling orders one after another
According to CCTV Finance’s report on the 22nd, Cixi City, Ningbo, Zhejiang Province is one of my country’s heater production bases, accounting for 30% of the country’s export volume. In previous years, the peak season for export heater production ended around mid-September. This year, affected by factors such as the Russia-Ukraine conflict and the energy crisis, the use of natural gas in many European countries has been restricted. The demand for various heaters has continued to increase. Many importers have temporarily placed additional orders, resulting in a wave of “replenishment orders.”
In Guanhaiwei Town, Cixi City, Ningbo, Zhejiang, a company is working overtime to produce a batch of portable home heaters. The person in charge of the company said that the customer for this batch of products is from Germany. The US$1 million order originally signed at the beginning of the year has been shipped, but in August this year, the customer requested an additional order of US$330,000.
It is understood that this company exported a total of 1.5 million heaters last year, worth approximately US$17.8 million. In the first eight months of this year, the company has exported 2 million heaters worth approximately US$22.8 million, an increase of nearly 30%.
Similar phenomena have also appeared in other heater export companies. A company in Xinpu Town, Cixi City exported heaters for about 160 million yuan last year, and this year it is expected to exceed 200 million yuan, of which new additional orders from customers exceed 20 million yuan.
Xu Songlie, general manager of an electrical appliance company in Cixi, Zhejiang, said, “European and American markets…��Our main market, the European market, accounts for a relatively large amount, accounting for about 70%-80%. Heaters of this type currently account for the first place in the export volume of the entire market. ”
Currently, there are more than 100 heater manufacturers in Cixi City, and their export volume accounts for 30% of the country’s total. According to customs statistics, heater exports increased significantly in the first eight months of this year, with exports to the EU increasing by more than 50%.