Desk fans: Changes spur positive outlook

Rising demand in emerging markets, lower material costs and higher tax rebates are enlivening the industry.

Industry conditions are again becoming favorable for China’s electric fan suppliers after a period of difficulty resulting from the global economic slowdown. This has prompted upbeat projections, with companies anticipating a 20 to 30 percent increase in sales this year.

The US and the EU, for example, continue to offer long-term growth potential, while Southeast Asia and the Middle East are proving viable export alternatives.

At some companies, shipments to the last two destinations have risen 20 percent over 2008 figures. To cater to the needs of these markets, makers are shifting their focus to low-end models with basic features.

Several suppliers are even setting up design centers in emerging economies. Large manufacturer Homstar Electrical Appliances Co. Ltd, for example, has established a product development facility in Iran in cooperation with Alooni.

Reduced material costs, meanwhile, are enabling suppliers to minimize spending and, consequently, keep a tight rein on prices.

Another factor driving optimism in the line is the recent increase in the export tax rebate to 15 percent. Prior to this adjustment, companies received a refund of only 9 percent.

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