The MP-228 from Shenzhen Nicelyinfo is a 9-band radio with an alrm clock.

Housing designs range from conventional to novel, and functions
from basic to digital.

Clock radio manufacturing in China is a longstanding and mature line. It has been thriving mainly in the gifts market for the past three years. Entry-level, midrange and high-end models are available, with features varying from traditional to novelty housing designs, and from basic to digital functions.

Demand is stable but fierce competition in this segment and component cost increases are causing suppliers to drop out of the line, a trend that is expected to continue through 2008. Many of these makers are small and medium-scale enterprises.

The region has between 70 and 80 clock radio manufacturers. Eighty percent of these makers are based in the cities of Shenzhen, Guangzhou, Dongguan and Zhongshan in the Pearl River Delta. The industry has become centralized with more than 60 percent of total clock radio output coming from China’s top five makers.

Beyond stable demand, some manufacturers are eyeing the high-end market, seeing trendy designs and digital technology as potential growth drivers.

The majority of makers offer OEM services to overseas clients, while some large suppliers develop their own brands for both domestic and export markets.

Manufacturers of clock radios in China align their product development efforts with their target markets. The majority of these suppliers mainly cater to the gift market, for which they offer basic models in a variety of housing designs from traditional to novel shapes and motifs. Other companies aiming for a wider market reach are producing clock radios that appeal to the high-end segment.

In line with the trend to produce environment-friendly products, Shenzhen Kailong Electronics Co. Ltd has developed a clock radio that runs on a rechargeable Li-ion battery, replacing traditional batteries normally used in conventional clock radios.

Shenzhen Kailong provides more than 150 models of advanced radios, including multiband, digital and PLL models. It employs 40 R&D engineers who can release one or two clock radio models each month.

Targeting mainly the gift market is Shenzhen Nicelyinfo Electronic Co. Ltd, which has introduced clock radios in mini and cartoon character shapes. The company has also released a water-resistant clock radio.

For 2008, interviewed makers intend to develop new models depending on market developments.

Pressure from rising raw material costs and the appreciation of the yuan forced many clock radio suppliers to slightly increase prices of their basic models this year. The prices of midrange and high-end models have remained relatively stable or may have even decreased. Shenzhen Nicelyinfo increased its prices by 5 percent this year. This pricing trend is expected to carry over to 2008, as raw material costs and the currency situation show no signs of stabilizing.

Current FOB quotes range from $3 to $5 for basic clock radios, $6 to $12 for midrange models and $18 to $45 for high-end models with PLL tuning and USB port.

Interviewed makers include radio specialists and gift product manufacturers that mainly market their products overseas. They produce 200,000 to 800,000 clock radios a month—about 70 to 80 percent of their utilization rate—proving the line remains buoyant.

Shenzhen Kailong produces about 800,000 clock radios a month out of a production capacity of about 1 million units. Sixty percent of its output is exported worldwide, mainly to Southeast Asia, the Middle East and South America. About 90 percent of overseas shipments carry the in-house Kailong brand.

The Shenzhen-based company, established in 1988, is one of the largest manufacturers of radio products in China. It has an 80,000sqm factory and employs about 7,000 production workers, 450 QC staff and 40 R&D engineers. It has 40 production lines and facilities for radio cabinets, PCBs, hardware, speakers, switches, coils, color printing, silkscreen printing and spraying. Shenzhen Kailong plans to obtain an ISO 14000 certification for its ISO 9001-certified factory.

Shenzhen Nicelyinfo has been producing clock radios since 1992. Its monthly production capacity is about 500,000 clock radios and monthly production output is about 400,000 units. The company mainly adopts Sony and Philips chipsets in its clock radio products.

Aside from clock radios, Shenzhen Nicelyinfo also produces a range of gift products at its 3,000sqm factory. It has a total of 300 employees, including five R&D staff mainly involved in PCB layout and structure design. All of its products are exported, with Europe and North America among its major markets.

Shenzhen Guanghua Electronics Fty, established in 1992, specializes in the development and manufacture of various gift products. The privately owned company has been making clock radios for more than 10 years. It can produce about 300,000 clock radios and currently turns out about 200,000 units. About 80 percent of its models are for export, mainly to Southeast Asia, Europe and South America.