Ceramic dinnerware

	Tangshan OV produces model VS4901, an underglazed set that is microwave- and dishwasher-safe.

Faced with several growth-hindering challenges, suppliers of ceramic and porcelain dinnerware in China are adopting measures to stay competitive.

The continuing appreciation of the yuan against the US dollar is among the top industry concerns. In fact, the local currency is projected to rise further by 9 percent in the next 12 months.

Affirming its role in ceramic and porcelain dinnerware quotations, the yuan’s revaluation accounted for about one-third of the total export price in the first two months of 2008.

Aggravating the situation for manufacturers are tax rebate cuts, and rising material, labor and oil costs. The last has prompted companies to allocate a greater portion of revenue for shipping, limiting profitability.

Further, the global financial crisis is taking its toll on China’s shipments in the line. Orders from the US and the EU, two of the country’s major markets, declined significantly in the past few months due to a shrinking customer base.

Most suppliers are forecasting the export downturn to continue in the next 12 months, with sales decreasing by about 10 percent.

Trade restrictions in other destinations add to the woes of manufacturers. Turkey, for instance, imposed in July 2008 a limit on the volume of imported dinnerware from China.

Under efforts to overcome such hurdles, the majority of makers are reducing administrative expenditure by streamlining manufacturing processes. This speeds up design sampling and order delivery as well.

A number of established companies in Guangdong province have also relocated production north to Shandong province, where oil used for running kilns is abundant and less expensive.

Moreover, some manufacturers have started offering flexible MOQs to attract new customers and retain existing ones.

Other suppliers, meanwhile, are left with no choice but to push up product prices. They have raised quotes by 5 to 10 percent under efforts to stabilize margins.

	Shenzhen Hawkin offers a 20-piece porcelain set that includes a bowl, saucer, cup, and salad and dinner plates.

The line can be classified as earthenware or stoneware. The former, which is less expensive, contains common and ball clay, and quartz.

Further, earthenware is completely opaque. Fired at 700 to 1,200 C, it is considered the least durable, chipping and crazing easily.

Models under this category are not suitable for oven and freezer applications. Most can come in bright colors.

Low-quality earthenware incorporates overglazed decals that are prone to peeling or fading after continued use. Some may even have unevenly applied colors and visible bubbles.

Upscale models, on the other hand, have a glossy finish, underglazed surface and intricate patterns painted by hand. These contain high amounts of clay and quartz, rendering them durable and dishwasher-safe. Prices start at $0.30.

Even though stoneware looks similar to earthenware, it is more dense, heavier, and suitable for use in convection and microwave ovens, and freezers. Products are generally processed at 1,300 C, and composed of potash, ball clay, sand and feldspar.

Quotes range from $0.40 to $0.80 per piece.

Low-end stoneware contains high amounts of ball clay, which imparts a rough texture. Models have a matte or glossy finish.

Upscale products are smooth and white in appearance because of their high kaolin content. Marketed as white porcelain, releases feature a gilded surface and handpainted designs.

Dinnerware made of hard-paste porcelain is also offered. The material is developed from a formulation of kaolin, feldspar and quartz. It is widely available in Guangdong, Fujian and Zhejiang provinces.

Bone china models are popular as well. Composed of calcined bone ash, petuntse and kaolin, these have an ivorylike appearance.

For differentiation, companies can give releases an embossed, depressed, cracked or gilded look.

To address the safety concerns of consumers, makers are testing products for lead content.

Those that outsource glaze, for instance, are ensuring the material has minimal or no amount of this hazardous element.

Some large suppliers have even started developing their own lead-free glaze.

China manufacturers are also striving to meet several market-specific standards, including those of the FDA and California Proposition 65 in the US, and the EU’s EEC.

R&D teams at most companies are working on new decal patterns, brighter colors and special shapes. The last is aimed at serving bowls and trays.

In the next 12 months, buyers will see more themed sets. Among these, collections in floral and holiday motifs are expected to top the country’s dinnerware selection.

Suppliers are also making plates, saucers and bowls according to the preferences of specific markets.

Classic plain white models, for instance, are being produced for EU-based buyers. Colored dinnerwarein various motifs, on the other hand, dominate US-bound shipments.

China is home to about 5,000 suppliers of ceramic and porcelain dinnerware. These are mostly small and midsize, and specialize in low-end and midrange models.

Small makers generate annual revenue between $1 million and $4 million, and have a monthly output of up to 600,000 pieces. Midsize companies post sales ranging from $5 million to $10 million, and employ 100 to 500 workers. They yield approximately 3 million dinnerware pieces each month.

The yearly revenue of large manufacturers reaches $40 million. The workforce totals 800, with monthly output hitting 5 million to 10 million pieces. The majority of suppliers in this category have strong R&D capability and can accept large-volume orders.

Privately owned enterprises dominate the country’s supplier base. Foreign-invested and state-owned companies account for the rest.

Because of its well-developed network of raw material providers, Guangdong is the primary hub for the line. In fact, the coastal province contributes 40 to 50 percent of China’s total dinnerware exports.

Specifically, Chaozhou city in Guangdong has the largest concentration of manufacturers.

As a result, the prefecture-level city has gained recognition from the China Ceramic Industrial Association as the porcelain dinnerware capital of the country.