Ceramic crafts

	Quanzhou Mayflower offers model MC8051903ED, a three-piece terra-cotta candle holder set. It is painted and sprayed with crystal sand.

Experiencing a slump in exports, suppliers boost R&D efforts and focus on models with enhanced intricacy.

Hampered by the global economic slowdown, reduced export tax rebate and continuing appreciation of the yuan, ceramic and porcelain craft suppliers in China are moving upmarket to stay afloat.

According to customs statistics, the country shipped about 560 million pieces in 2007, down 9 percent from the previous year. Revenue also declined 17.5 percent, from $800 million to $660 million.

For January 2008, overseas orders shrank by 11.3 and 17.3 percent in volume and value, respectively, compared with the same month in 2007. The export downturn is projected to linger amid the current global economic crisis.

Compounding the situation for ceramic and porcelain craft manufacturers is the lower tax rebate. The government cut the rate from 13 percent in 2005 to just 8 percent in 2007.

In response, the China Ceramic Industry Association lobbied for a raise in the export rebate, which was successfully increased to 11 percent in August 2008.

This adjustment, according to the association, is expected to inject more than $180 million back into the industry.

Meanwhile, the majority of makers are also boosting R&D to produce more-intricate crafts for upscale markets in Europe and North America. In fact, many are now catering to large retailers such as Metro in Germany, and US-based Kohl’s and Pier 1.

	Xiamen Yangtse offers a white porcelain craft that serves as a tealight and LED candle holder.

Although many China suppliers invest no more than 5 percent of revenue in R&D, a number have started devoting a greater portion to boost their design-making capability.

One company interviewed for this report, Shenzhen Always Houseware Co. Ltd, allocates about 30 percent of annual sales to product development.

Increasing competitiveness further, the majority of local and foreign-invested manufacturers are now working with Taiwan- and Hong Kong-based design firms. Some have even hired experienced R&D personnel from the US and Australia.

Another supplier interviewed, The Great Wall Group Co. Ltd Guangdong, has established a partnership with the Guangzhou Academy of Fine Arts to create special styles. It has a 100-member product development team.

China makers are also expediting pattern creation by limiting manual work and employing computer software. New shapes require between 20 and 30 days to complete, while versions with existing molds take seven to 20 days.

Some companies patent their designs under efforts to combat rampant piracy.

R&D in coming months will focus on new colors and patterns. Models in bright tones, for instance, will be released in greater numbers especially for the spring and summer seasons.

At the same time, some companies will be combining clay with other materials such as wood, fabric and beads to increase product differentiation.

To save on time and transportation costs, China makers procure clay, pigment and glaze locally. The last may also be purchased overseas, specifically in Taiwan, Spain and Italy. This, however, pushes up product prices by about 50 percent.

Clay is sourced from the provinces of Guangdong, Fujian, Hebei, Jiangsu and Jiangxi. Raw materials from these hubs contain high amounts of kaolin, a layered silicate element known for its superior plasticity. Good kaolin has low iron and titania content.

Kaolin is obtained mainly from Jingdezhen city in Jiangxi.

Terra cotta and dolomite are typically purchased in Guangdong and Fujian.

For the ceramic and porcelain crafts segment, different firing temperatures are applied, depending on the type of product. Terra-cotta models are processed at 800 to 1,100 C, while stoneware is fired at 1,160 to 1,120 C. Porcelain versions are baked at 1,200 to 1,450 C.

The firing treatment itself has a major effect on product durability. Models processed at above 900 C, for example, are dense and rigid. Those fired below this temperature level, however, turn out to be more prone to chipping and breaking.

Terra-cotta and dolomite models dominate China’s selection of ceramic and porcelain crafts. The first type can be glazed or unglazed, and have a matte or antique finish. Earthen- and stoneware are also available.

Both indoor and outdoor products are offered. The former includes tabletop and floor figurines, decorative dinnerware and plaques. The latter encompasses garden sculptures, flowerpots and planters.

Handpainting and decal printing are the two most commonly applied design methods in the line. For the first technique, special materials such as crystal sand and gold pigment may be utilized. The paint adopted is mainly formulated from acrylic acid. On request, it can be tested by third parties such as SGS or ITS for lead content.

Electroplating is likewise employed, mostly for upscale porcelain models. The method imparts a metallic appearance.

Some versions also feature carved details. These, however, are 30 to 50 percent more expensive.

Products may come in Western holiday themes, including Valentine’s Day, Easter, Halloween, Thanksgiving and Christmas. Animal-shaped models are available as well, with bird, fish, pig, horse and frog figurines as best-sellers.

Additionally, some crafts are designed in functional forms. This segment includes cash and trinket boxes, candle holders, vases and food canisters. Several companies have even launched tealight-style figurines with built-in LEDs.

Products range from 5 to 150cm in length or height. Floor and garden models generally measure 20cm tall.

Prices depend mainly on the size and design intricacy.

Under efforts to satisfy safety-conscious markets such as the US and the EU, most suppliers are sending finished products to SGS or ITS for lead and cadmium content evaluation. Further, the LEDs employed in some models are UL-listed and bear the CE mark.