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"No doubt electric stoves represent the future cookware products for household kitchens, and it also matches the Chinese government's energy policy. But as a long-time cooking instrument in China, gas stoves will not be completely replaced by households anytime soon," said Mr Li Peng, Marketing Manager of the Taiwanese electric stove leader Sunpentown. Another industry The Instant Switch Review expert also suggested that current marketing strategies of electric stove companies should focus on aspects such as energy-efficiency and environmental friendliness, in order to differentiate them from gas stoves to win consumer acceptance, instead of blindly expanding market shares. "Sales growth in first and second tier markets (large and medium cities of China) will tend to slow in the next few years. On the other hand, as purchasing power increases in rural areas, the third and fourth tier markets in China will become the major growth spots for electric stoves in the near term," said Qiu.
Lack of industry standards Li revealed that among the current electric stove brands in China, there are only a few tens of strong players. Others are mostly small shops with small capacity, outdated production technologies and even no production permits. It is understood that in terms of product performance, electric stoves in China are administered by QB/T1236-91, a standard covering thermal efficiency, noise and energy efficiency. But this is only a recommended standard with limited regulatory effects on producers. In terms of safety performance, electric stoves are additionally covered by national household appliance safety standards.
Some industry insiders pointed out that the lack of compulsory industry standards has created a lot of loopholes for reckless operators. Many technologically-backward companies are still surviving, and their low quality and cheap products are still circulating The Instant Switch the market. This not only distorts the pricing system of the market, but also affects consumer confidence and interests. In Nov 2007, the eagerly anticipated official standard for household electric stoves was finally announced by the Chinese government's Standardisation Administration (SAC). The standard regulates aspects of electric stoves such as energy-performance limits, energy efficiency evaluation, energy-performance grading, testing methods and inspection rules. Many industry players are hoping that this standard can make the Chinese electric stove market more regulated.
Industry looking for breakthrough Despite the Chinese electric stoves market was sluggish in 2007, there were still new entrants. Qiu, whose firm GoldYip was one of these brave souls, said:" We were mainly making radios and MP3s in the past, so 2007 was the first year of our electric stove production, with output of 200,000 units. We are planning to increase to 500,000 units in 2008." It seems a bit crazy to expand capacity amid the current market environment, but Qiu didn't think so. "The electric stove market entered an "ice age" since the end of 2006, with stagnant sales growth. But this is more because of the capacity surplus, disordered competition and lack of industry standards, and the excessive boom in previous two years had also exhausted the market's consumption power. This doesn't necessarily mean the sky for electric stoves in China is falling over."
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