Shenzhen Tide, from mainland China, offers battery holders suitable for toys, recorders, lamps and digital products

The robust market for batteries in the Greater China region offers strong opportunities for makers to offer accessories such as battery holders, battery snaps and battery adapters along with their products. Despite the large number of battery makers in the region, however, the battery accessory industry is still in the initial stages of development.

In mainland China, the manufacture of battery holders began in 2000, when the first battery holder line became available through Shenzhen Tide Hardware & Electronics Mfg. So far, the industry has gathered about 10 major makers, mostly located in Shenzhen and Dongguan in Guangdong.

"The battery holder industry is a new sector and is still attracting new investors," says Deng Ren-long, director of Shenzhen Tide. Established in 1997 by Megawell Co. Shenzhen Tide specializes in the production of electronic sound generator cases, battery adapters and battery snaps.

Demand for battery holders should remain stable throughout the rest of the year, according to Maxwell Zhou, sales manager from Changzhou AVI Electronic Co. Ltd. "We expect total sales this year to be along last year's levels," says Zhou. Based in Jiangsu, Changzhou AVI produces battery holders, A/V connectors and cables, remote controls, antennas and telephone accessories.

Most of the makers say their current capacities will remain on-level throughout the year, as there is enough room for orders during the peak season. "As the industry entry level is low and almost every maker runs at high capacity, there is no need for any expansion," notes Yang Shao-min, chief engineer of Guangzhou Lingmin Electric Appliance Fty.

Shenzhen Tide has a monthly capacity of 500,000 units and utilizes 80 percent of its production capacity. Dongguan Yongfei Ind. Co. Ltd is utilizing almost full capacity at 600,000 battery holders per month. Changzhou AVI has a monthly capacity of 800,000 units.

Taiwan has about 20 to 30 active makers of battery holders. These companies have facilities both in Taiwan and mainland China. According to the Taiwan Bureau of Foreign Trade, the production value of rechargeable batteries exported from Taiwan reached $38.6 million in 2004 and $21.3 million in 2005. The Bureau claims that the main reason for the decline is that most Taiwan makers have moved production to the mainland. However, battery accessories, such as holders, snaps and adapters, remain contained in Taiwan for these makers, as they market these accessories along with their high-end batteries.

In Hong Kong, the few companies that produce battery accessories, such as battery adapters or upsizers, battery chargers and transformers, are all involved in the power supply sector. These companies produce these accessories as part of their product mix.

While no other enhancements can be expected in terms of primary functionality, these makers do find ways to modify the products to enhance their practicality. To gain a larger market, these makers target the AAA to D battery sector, rather than just the AA or AAA sector.
Value-added accessories
Customized designs top R&D
Raw material costs, RoHS hike up prices

	Battery upsizers from Everfast, Hong Kong, come in total-solution packages with up to 10 batteries, a 15min charger and a lighter adapter

Techworld Ind. Ltd regards its battery adapters as value-added accessories and only provides them to buyers upon request. It packages its adapters along with rechargeable AA batteries.

EverFast Rechargeables Ltd likewise treats battery adapters as accessories marketed together with their battery chargers. The company claims that these products provide a way of reaching markets that predominantly use C and D batteries in consumer electronics. For instance, AA NiMH battery capacities breaching 2,600mAH can address the needs of D battery-operated appliances.

EverFast began offering its battery converters only as complimentary accessories, but consistent positive buyer feedback pushed the company to include the products as standard add-ons.

According to EverFast, the market for C and D type batteries has been decreasing as the majority of consumer electronic devices on the market use more AA or AAA batteries with higher capacities.

Techworld agrees that AA and AAA batteries will remain mainstream due to the proliferation of portable digital electronic devices. It also believes that the market share for C and D batteries is on a continued downturn.

Battery holder makers now produce a complete range of products for C, D, AA and AAA batteries, with units that can hold one to eight batteries. Products may come with or without a cover, or with or without a switch. At present, holders for the AA size batteries are the mainstream accessory.

High OEM service ratios are pushing makers to produce more customized designs. Some makers are also shifting to high-end units and prioritizing R&D in the areas of casing, function and structure.

Dongguan Yongfei developed 10 new products last year. The company says its R&D now focuses on structure and functions. "We are now developing units with switches on top, as opposed to existing battery holder models that have switches at the bottom," says Deng Ju-Jun, sales manager.

Changzhou AVI also focuses its R&D on OEM designs. Its 20-member R&D team releases 10 new products every year. For Shenzhen Tide, six to seven new products are released annually.

Comfortable Electronics Co. Ltd also has a number of patents for battery holders and battery snaps, mostly obtained in the United States, Germany, the UK, Thailand, Taiwan, Vietnam and mainland China.

Established in 1976, Ace Sound Ent. Co. Ltd emphasizes the development of smaller battery clips, snaps and holders. Main applications for its products include mobile phones, computers, toys and automotive products. However, the company can also produce battery holders for medical equipment and military devices.

Battery upsizers are an ever-present component in EverFast's total-solution packages. A typical package includes about 10 rechargeable batteries, one fast charger, four AAA to C and four AA to D converters.

Battery adapters from Techworld involve simple functionality innovations. Its upsizers are distinct from other models on the market, since their models also double as carrying cases, apart from adapting AA batteries to the C and D sizes. Each adapter snaps tightly shut over one AA battery and has connecting grooves that allow putting several converters together.

Prices of battery accessories depend on the type of accessory, or whether they are marketed separately from the battery products themselves. Quotes for battery holders are determined by the number of batteries held, battery size, and whether they come with or without holder cover and switch. Currently, a two-AA battery holder has quotes of at least 25 cents FOB. In the case of Shenzhen Tide, battery holder prices are likely to remain stable in the coming six months, according to Deng.

The cost of raw materials and the additional cost of producing RoHS-compliant products may also affect the pricing for battery holders and other accessories. With costs of copper and plastic on the rise, quotes may continue to increase throughout the year. Most battery holder makers in Taiwan project price increases of about 10 percent in the next six months, with Acs Sound predicting a price increase of 15 percent to 20 percent within the rest of the year.