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China Electric Appliance Manufacturer SPECIAL EDITION Washing Machine www.ChinaIOL.com The GLOBAL Display Platform for China Electric Appliance Manufacturer 2011 Overview on China washing Machine Industry Development Washing Machine China Exports Situation Global Market and China Industry Development of Drying Machine

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Report on CHINESE Home Appliances & the market trends.

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Page 1: China - Home_appliances

China Electric Appliance Manufacturer

SPECIAL EDITION Washing Machine www.ChinaIOL.com

The GLOBAL Display Platform for China Electric Appliance Manufacturer 2011

Overview on China

washing Machine Industry Development

Washing Machine

China Exports Situation

Global Market and China Industry Development of

Drying Machine

Page 2: China - Home_appliances
Page 3: China - Home_appliances
Page 4: China - Home_appliances

Contents November 2011

Inserted Front: Midea

Inside Back Cover: EPG

Back Cover: SAM SUNG

Index of Advertisements

Washing Machine

8 Overview on China Washing Machine

Industry Development

14 Washing Machine

17 China Exports Situation

20 Global Market and China Industry Development

of Drying Machine

25 Midea

29 Lesli GROUP

33 Xinle

Upstream

38 Brief Description on the Current Motor Application

Situation of Washing Machine

42 Washing Machine Draining Pump:

Easy but not Simple

P1: COPRECI

P3: APPLIED

P5: Lesli

P6: Galanz

Global market and China industry

development of drying machine

2 CEAM - November - 2011

Page 5: China - Home_appliances
Page 6: China - Home_appliances

Chief Editor: Jie Yang

Associate Editor: Lizhe Zhang

Editor/ Reporter(AC):

Xiaofang Suo Xiaolan Fan Zheng Sun Yinghan Wang

Editor/ Reporter(HVAC):

Yanfang Yu Run Yang

Editor/ Reporter(Upstream):

Jinhua Zhang Yuxin Pang

Editor/ Reporter(Refrigeration):

Ping Yang Juan Wang Jingjing Li Ying Liu

Editor/ Reporter(Household Appliance):

Xi Wang Ling Zhang Qin Liu

Art Editor: Yang Zhou

Edition and Publishment: China Electric Appliance Manufacturer

Address: 619B xinyijiayuan, Chongwenmen Waidajie,

Chongwen District, Beijing

Zip Code: 100062

Website: ChinaIOL (www.ChinaIOL.com)

Editorial Phone: 010-6708 1838/1920 -821

Advertisement Phone: 010-6708 1838/1920 -822

Fax: 010-6708 1718

Beneficiary: Beijing Zhixindao Consulting Co., Ltd.

Account Bank:

Branch in Xuanwu District of Beijing Rural Commercial Bank

Bank Account: 1901000103000003388

Issue Date: 18th of each month

Price: 5$

CEAM

Page 7: China - Home_appliances
Page 8: China - Home_appliances
Page 9: China - Home_appliances

PART1: Washing Machine

Overview on China Washing Machine Industry Development

Washing Machine

China Exports Situation

Global Market and China Industry Development of Drying Machine

Main Manufacturers

Page 10: China - Home_appliances

Washing Machine

I Overview2010 is a very exciting year for

China washing machine industry. On the one hand, China good macroeconomic environment provides a stable, positive environment for washing machine industry; on the other hand, China has promulgated favorable policies which greatly contributed to the development of home appliance industry, including washing machine industry.

There is home appliance old- change new policy in Beijing, Shanghai Chengdu and so on. This policy promotes the urban market washing machine product upgrading demands. In rural areas, China has introduced home appliances to the countryside policy, which plays a great role in promoting mining and developing rural market consumption potential.

Benefit from good macro economy

and favorable policies, China washing machine industry in 2010 has experienced rapid development, production and sales both flourish, and have big growth. Chinaiol data shows, in 2010, overall production of China washing machine industry amounts to 50,180,000 units, up 25.98% compared to the same period of last year, industry sales volume reaches 50820000 units, up 28.79% year on year, of which the domestic market sales volume is 33,900,000, up 28.09% compared to the same period of last year, export volume is 16,920,000, up 30.23% year on year.

Since entered 2011, based on the demand of upgrading and popularity in rural areas, China washing machine market is still in a better and better environment. But the global economy has a slowdown, and the economic situation

is complicated and changeful, which bring china washing machine industry uncertainty factor. Therefore, reflected in the data , in first half of 2011 China produced a total of 26,273,000 units, up 18.2% year on year, total sales volume of washing machines is26,439,000, up 15.23% year on year, of which domestic sales volume 17,742,000, up 18.43%year on year, total export volume is 8,698,000, up only 9.21%year on year. Compared to the same period of last year, the growth of washing machine market of the first half of 2011 especially the export market, is slowing down obviously.(Figure 1)

The market scale development and expansion promote the washing machine enterprises to invest in order to expand capacity as well as promoting the whole industry upgrading as the same time.

As the key city's consumption level

Figure 1 Overall situation of China’s washing machine industry in the first half of 2005-2011(unit: 10,000)

Year procuction volumesales volume

total domestic exportthe first half of 2011 2627.3 2643.9 1774.2 869.8

Y-Y growth 18.20% 15.23% 18.43% 9.21%2010 5018.0 5081.9 3389.7 1692.4

Y-Y growth 25.98% 28.79% 28.09% 30.23%2009 3983.0 3945.9 2646.3 1299.5

Y-Y growth 6.27% 5.26% 11.08% -4.87%2008 3748.1 3748.5 2382.4 1366.1

Y-Y growth 11.07% 10.98% 11.61% 9.91%2007 3374.5 3377.7 2134.7 1243.0

Y-Y growth 12.43% 16.36% 25.38% 3.57%2006 3001.3 2902.7 1702.5 1200.2

Y-Y growth 8.47% 5.98% -7.17% 32.63%2005 2766.9 2739.0 1834.1 904.9

Data source: chinaiol.com

Overview on China Washing Machine Industry Development

8 CEAM - November - 2011

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Washing Machine

higher and higher and the scope of home appliance old-change-new policy in the city wider and wider, China washing machine industry products consumption structure get further adjustment - the proportion of high-end consumer im-proved signifi cantly and market share of drum washing machine surge.

II layout of production capacityIn 2010, China washing machine

industry total production capacity is about 81200000. From the production area layout features, Chinese washing machine industry production line is mainly concentrated in Shandong, Jiangsu, Anhui, Zhejiang, and Guangdong. These large areas are the traditional Chinese white home appliance production base. Haier, Midea, Siemens and other mainstream production lines launched in these main areas, therefore, the total production capacity of these main areas is 65300000 units, accounting for about 80%. Other areas, such as Jingzhou, Ji'nan, Jiangxi and other places also have washing machine production lines, but relatively speaking, its capacity is less, and total production capacity is 15900000, accounting for about 20%. Thus, China washing machine industry production capacity layout in the region shows a high concentrated feature. (Figure 2)

From the enterprise characteristic of production capacity, the expansion of China washing machine industry production capacity is relatively stable and each enterprise’s production capa-city keeps relatively stable, so China washing machine industry layout shows restively stable feature. Haier continue to rank No,1. Its annual production capacity of pulsator washing machine is 12,700,000 units, drum washing machine is 2,700,000 units, and total production capacity is 15,400,000 units. Midea with two branches of Royalstar and LITTLE SWAN ranks No.2. Its annual production capacity of drum washing machine is 2,000,000 units, and total capacity can reaches 12,000,000 units. Hefei Sanyo with huge capital investment, completed its production line construction and put into operation, and the total annual production capacity can reach 5,600,000 units in the future. Panasonic ranks No.4 with 4,000,000 units total annual production capacity. The four enterprise

production capacity is about 37,000,000 units, account for 46%. (Figure 3)

III Characteristic of production out-put and sales

3.1 Scale characteristic

3.1.1. Production scale expands year after year

Under the better and better mac roe-conomic environment, benefi t from the home appliance to the countryside policy and stimulated by home appliance old-change-new policy, the domestic demand of washing machine is exuberant. In addition, the main international economy recovers, export situation improves and the export demand also keeps a high

growth. The growing consumer demand of domestic market and international market promotes the growing production output of China washing machine as well as production scale. Monitoring data shows that China washing machine industry production output scale reaches 26,270,000 units in the fi rst half of 2011, which is far more than the level of 22,330,000 units of the same period of 2011, up 18.2% year on year. (Figure 4)

3.1.2 Sales scale exceeded 50,000,000 units

In 2010, China's economy is faced with favorable international economic environment, the opportunities outweigh the challenges and the world economy decrease a little in a stable status. On

Figure 2 Regional characteristic of China washing machine production capacity

Note: Main areas refer to Shandong, Jiangsu, Anhui, Zhejiang, and Guangdong

Data source: Chinaiol.com

Figure 3 Enterprise characteristic of China washing machine production capacity

Data source: Chinaiol.com

CEAM - November - 2011 9

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Washing Machine

the one hand, it slows down the China’s economic growth. On the other hand it helps to reduce the risk of China’s economy becoming overheating form growing too rapid, promotes the adjustment of China’s economic structure, and provides washing machine industry development with a more favorable economic environment. The home appliance to the countryside policy and old-change-new policy introduced by government play an im-portant role in stimulating the washing machine industry. So china washing machine industry sees a rapid growth in 2010, and overall sales volume climbs to a new level-exceeds 50,000,000 units, and annual sales volume achieves 50,820,000 units, up 29% compared with 2009. The growth rate is even larger than the level of before the fi nancial crisis outbreak. In 2011, although the export market growth rate is not as good as last year, up until June, the fi rst half of the year sales reaches 26,440,000 units, up 15% year on year. (Figure 5)

Among them, from the beginning of 2007 China washing machine domestic market maintained a relatively stable growth rate, maintained at about 11.5%. In 2010, the stability was broken, industry suddenly surges. Driven by favorable policies such as the home appliance to the countryside policy and old –change –new policy, the demand of China washing machine domestic market is exuberant, and total domestic sales reaches 33,896,600 units, up 27.63% compared with same period of 2009. The growth rate increases dramatically. In 2011, it continues to maintain growth momentum and the fi rst half of the year sales reaches 17,741,600 units, more than the level-14,980,300 units of the same period in 2010. (Figure 6)

In international market, during 2005-2007, total export volume of China washing machine increased but the growth rate decreased rapidly. In 2008, exports maintained a relatively stable growth. In 2009, due to the economic crisis, foreign market demand declined, China washing machine exports was prevented, and the exports fell instead of grow, down 5% year on year. In 2011, as the international economic situation improved, export demand was exuberant, the total exports reached 16,920,000 units (including Haier separate parts), up 30.5% year on

Figure 4 Production scale of China washing machine in the fi rst half of 2004-2011 (unit: 10,000)

Data source: Chinaiol.com

Data source: Chinaiol.com

Figure 5 Sales scale of China washing machine in the fi rst half of 2004-2011(unit: 10,000)

Data source: Chinaiol.com

Figure 6 Total sales volume of China washing machine in the fi rst half of 2004-2011(unit: 10,000)

year. Entered 2011, although the growth rate has declined, the export market still maintained upward growth. The total exports of the fi rst half of the year was 8,700,000 units, up 9.21% compared to

the same period of last year. (Figure 7)

3.2 Seasonal characteristic

3.2.1 Seasonal characteristic of

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Washing Machine

production outputWashing machine industry output

seasonal characteristics is mainly in-fl uenced by two factors, one is the consumer s’ actual using demand for washing machine, the other is washing machine sales. On one hand, the con-sumers’ actual using demand can promote the washing machine sales, on the other hand, fl uctuation in sales of washing machine shows the changes in consumer demand for washing machine from a certain aspect. Therefore, the demand and the actual sales are interdependent and mutual infl uence production seasonal characteristics of washing machine industry.

From the consumption demand for washing machine, generally, the demand decreases in summer, because the laundry is light and easy to clean, the water temperature is also more appropriate and people can wash the clothes by hands. From the autumn, the water temperature decreases gradually, the clothes become thicker and thicker and it is diffi cult to wash them by hand, so the demand for washing machine begin to increase.

View from the washing machine sales, the holiday effect is more obvious. Chinese domestic consumers are accustomed to shopping and buying home appliance during holiday, so the annual New Year's Day, May Day, and National Day will form the traditional sales boom season. In order to increase sales volume and sales amount, washing machine manufacturers must ensure adequate supply in sales boom season, and increase production output and are active in stocking pre-holiday. Therefore, China washing machine industry seasonal characteristics can be summed up as follows: Spring increases, summer’s stable, autumn rises and winter’s high.

Considered for stocking for Spring Festival, in January, washing machine manufacturers increased the output and formed a small peak production. Then the washing machine output fell in February. Benefi t from the golden period of May Day holiday, the output in March and April began to increase, while from the beginning of May to the end of the summer, output remained stable. Since the beginning of September, on one hand, infl uenced by the increasing demand for washing machine entered into autumn,

on the other hand being faced with upcoming of the National Day golden week, each manufacturer produced with full capacity, and was active in stocking. Washing machine industry overall output increased, and reached annual production peak in December. (Figure 8)

3.2.2 Seasonal characteristic of domestic sales

For domestic market of China wa-shing machine, in general, the sales of second half of the year is better than the fi rst half. In March and April, infl uenced by the decoration season" Golden March, silver April”, the home appliance demand including washing machine demand increase, and washing machine domestic sales appears a small peak. From May to August, washing machine industry enters off season and domestic sale is

stable. Since September, benefi t from the decoration trend “Golden September, silver October” and stimulated by long holiday consumption coupled with the climate becomes cold and heavy clothes increases since enter Autumn, the demand for washing machine is increasing. All these factors form a joint force to promote China washing machine domestic market sales continue to rise and achieve annual sales peak in December. (Figure 9)

IV Changes in domestic and export sales

China is a major exporter of washing machine, and washing machines depe-ndence on exports has been high. Since 2006, exports proportion began to decline from 41.5%, and to 2009 reached the bottom due to the dual role of global fi nancial crisis and Chinese government

Figure 7 Export volume of China washing machine in the fi rst half of 2004-2011(unit: 10,000)

Data source:China Customs

Data source:China Customs

Figure 8 Seasonal characteristic of production output of China washing machine in 2007-2011(unit: 10,000)

CEAM - November - 2011 11

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Washing Machine

stimulus policy, exports accounted for only 32.8%, decreased nearly 10 percentage points. In 2010, the global economy recovered and major developed economies economy recovered, so China washing machine industry export situation improved, export volume restored stable, and export proportion picked up somewhat and reached 33.3%, but the proportion change range was not very great. This because infl uenced by the favorable policies such as home appliance to the countryside policy and old-change-new policy, the upgrading demand of domestic major urban markets increased and the popularity demand in grade 3 and grade 4 market also have been developed; the domestic demand was exuberant and domestic sales increased signifi cantly year on year. Entered 2011, due to global economy slowing down and global excess liquidity leading to declining foreign demand, the washing machine export volume growth slowed and export proportion also declined slightly. The fi rst half of 2011, export proportion was 32.9% and domestic sales proportion increased to 67.1%. (Figure 10)

V Characteristic of product

5.1 Drum washing machine market share improves

In recent two years, in domestic market of China washing machine industry, pulsator washing machine still occupied the mainstream of the domestic market. Haier’s nearly 90% of the domestic sales was created by pulsator washing machine, and pulsator washing machine occupied almost the whole in domestic sales constructer of Royalstar of Midea series. But with the implementation of the urban areas' home appliance old-change-new policy, and consumers’ increasing demand for upgrading the washing machine, the market proportion of drum washing machine increased accordingly. Haier, Little Swan, Panasonic, Hefei Sanyo, LG, Siemens and so launched new products of drum washing machine in order to seize the drum washing machine market share. Siemens targeted in high-end market, and its washing machine products were all drum washing machine, accounting for the largest proportion. LG followed, and drum washing machine accounted for more than 50%. Little

Swan has a more comprehensive high-end technology. In 2010, with the help of the strong channel advantage of Midea, Little Swan developed drum washing machine sales with great efforts, and the proportion accounted for more than 20%.

View from the monitoring data, the drum washing machine market share in domestic washing machine increased obviously. In 2006-2008, the Chinese domestic drum washing machine market share remained at about 10.5%; from 2007 the drum washing machine market share began to increase continuously and the growth rate became larger and large gradually. In 2010, in Chinese domestic market, the market share of drum washing machine has already reached 13.3%, and increased 2.2 percentage points compared with 2009. While in the fi rst half of 2011, drum washing machine market share also

achieved a breakthrough-reaching 16.1% and increasing nearly 3 percentage points compared with 2010. (Figure 11)5.2. Gradual popularization of Var-iable-frequency washing machine product

Although Variable-frequency Tec-h n o l o g y has been applied to washing machine a decade ago, constrained by publicity and price, variable-frequency washing machine has failed to become the market mainstream. In the back ground of deteriorating ecological environment, driven by the national energy-saving and emission reduction policy, people’s energy-saving and environmental aware-ness increased continuously and made higher energy effi ciency requirements on home appliance including washing machine which largely accelerated the popularization of low-carbon, high

Figure 9 Seasonal characteristic of domestic sales of China washing machine in 2007-2011(unit: 10,000)

Data source:China Customs

Data source:China Customs

Figure 10 Proportion of domestic and export sales of China washing machine in 2005-2011

12 CEAM - November - 2011

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Washing Machine

energy-effi ciency washing machine popularization. Variable-frequency was-hing machine, as a representative of low-carbon and energy-saving washing machine, is expected to spread rapidly with recent two years. And compared with the ordinary washing machine, as a result of adopting frequency conversion motor, variable-frequency washing machine is not only excellent in water-saving and energy-saving, but also particularly prominent in mute effect. Its revolving speed could be adjusted according to the quantity of clothes, with higher cleanliness and lower wear rate. Variable-frequency washing machine with a variety of technical advantage makes washing machine manufacturers intensify the popularization rapidly. Haier, Hefei Sanyo, Little Swan, Panasonic, and LG raised variable-frequency conversion to brand strategy height. We can expect that washing machine frequency will become a mainstream trend.

5.3 Obvious trend of large capacity of washing machine product

There is a obvious trend-washing machine product develops into large-capacity drum type in China domestic market. As the major channel of Chinese home appliance, domestic home appliance store mainly displays the 6 kg and above large-capacity washing machine products. With the improvement of consumers’ living condition, Requirements to en-hance the quality of life are bound to make consumers demand larger-capacity washing machine, which making the washing machine market mainstream capacity improving continuously and also contribute to the continuous increasing of large-capacity drum washing machine sales and market share. The washing machine mainstream enterprise has strengthened the introduction of large-capacity washing machine products. For example, LG launched a new super large-capacity washing machine, whose capacity reaches 9kg. This product fi lled the capacity blank in the market.

5.4 More user-friendly and fashio-nable appearance design

In the case of certain function of washing machine, its appearance design becomes an important factor in attracting consumer. In order to create a harmonious,

comfortable living environment, washing machine has increasingly become a part of overall living design. When buying washing machine, consumers are increasingly considering its suitability for the overall living style. Therefore, consumers have put forward higher requirement on its appearance shape as well as color. Blue, purple and other color panels are increasingly applied to the washing machine product, streamlined, round type, inclined drum shape design are also increasingly used in washing machine products-washing machine appearance design is more user-friendly and fashionable.

VI Development forecast Judging from the market demand

for washing machine, in 2011, China washing machine industry will continue the increasing trend in 2010, but the growth rate will be gentle. Viewing from the domestic market, in 2011, it will continue the favorable policies such as home appliance going to the countryside policy, trade-in policy, energy-saving and subsidies policy. City residents’ demand for upgrading the washing machine will maintain and continue to expand and the demand for high-end washing machine such as pulsator and drum washing machine is exuberant. As the national income level enhancement, especially the rural dwellers income level rise, the requirements on the quality of life improve. Washing machine, as a necessary good of

family life, will continue to spread in rural areas. In addition, the “Twelfth Five-Year Plan" proposed that in the next 5 years, the government will build 36000000 units of guarantee housing and only in 2011 it will fi nish the 10000000 units, while in 2010, it has completed 3700000 units. Completion of housing guarantee will bring a lot of demand for home appliance, which will provide strong protection for domestic demand of washing machine. These demands will form an effective stimulation on washing machine domestic market, and promote the quantity increasing of domestic market.

However, since entered the second half of 2011, home appliance favorable policies have come due, the policies withdraw effect emerged gradually, and the stimulation on domestic market is weaker. Together with the international market, the complicated international economic situation will bring uncertain factors on China washing machine export volume. Therefore, in general, in 2011 China washing machine industry will show a steady growth. Conservative estimates, in 2011, the domestic sales will reach 38,000,000 units and the overall market scale will be more than 57,200,000 units. For the products, frequency conversion technology upgrading, intelligent app-lication, user-friendly and fashionable appearance design, the comprehensive and detailed functional requirements will remain the development direction of washing machine industry.

Figure11 Market share of domestic sales of drum washing machine in the fi rst half of2006-2011

Data source:Chinaiol.com

CEAM - November - 2011 13

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Global productionIn 2010, the world economy is

recovering and still wandering in many uncertain factors. Though it has spared no efforts to break from the shadow of recession, the shock has not completely over, and economic recovery in Europe and America still needs some time. With this tone, washing machine trade shows recovery sign and moderate growth trend. (Figure 1)

In 2010, global washing machine production is 142000000 units, up 3% year on year. Because the washing machine current production and sale is multi-center production, and have a f regional radiation and low-cost radiation combination feature, washing machine production continuously transfer. And transferring to lower labor cost countries and areas is the characteristic of industry. The rise of emerging market and relatively stable demand in developed European and American countries brought about the largest proportion of washing machine production and demand in Asian areas. While traditional household appliance manufacturing bases such as Europe, North America and Japan were declining, accordingly foreign invested brand is gradually shift to emerging markets.

At the end of 2010, there were nearly 60 counties manufacturing washing mac-hine. Washing machine production has a high concentration of country and mainly concentrated in Asia. In 2010, Asian total production is 79100000 units, accounting for 55.64% of global output; European is 34290000 units, accounting for 24.12%. European production is ma-inly concentrated on Italy, Germany and Turkey; American is 20750000 units,

Washing Machine

50.2

9.5 7.0 6.9 6.4 5.8 5.6 3.7 3.6 3.5

40.2

35.30%

6.68%4.92% 4.83% 4.50% 4.05%3.90% 2.57%2.53% 2.46%

28.25%

0.00%

10.00%

20.00%

30.00%

40.00%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

China

USA

ItalyThailand

Germany

S.Korea

Turkey

Japan

India

Mexico

Others

production volume market share

Figure 1 Continents distribution of Global major washing machine production (Unit: million units)

Data source: Chinaiol.com

Data source: Chinaiol.com

Figure 2 Country distribution of global major washing machine production (Unit: million units)

14 CEAM - November - 2011

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accounting for 24.12%; Oceania and Africa occupy the least market share. (Figure 2)

In 2010 there are 18 countries whose production is over 1 million units. Production of the top 10 countries ac-co unted for 60% of global production. China is also a leading global producer. In 2010, total output is 50180000 units, accounting for 63.4% of Asian production and 35.3% of global output. In 2010, the annual output of USA is 9500000 units, accounting for 45.78% of American output, and 6.68% of global production. The total capacity of top three -China, United States, and Italy has accounted for nearly half of the global total production, which formed three major washing machine production areas- Asia, America, and Europe.

In 2010, washing machine production layout still shows characteristics of the shift from developed to the developing countries; Asia remains a transfer trend to Thailand, India and Indonesia; America remains a transfer trend to Mexico and Brazil; European transfer to East Europe such as Poland and Russia from developed region increases the proportion of OEM products from other manufacturers.

At present the world washing machine market has three main schools: European drum washing machine, Asian rotary washing machine and American stirred washing machine. Global drum washing machine production accounts for more than half of the total output of washing machine, but is mainly popular in the European market.

Global salesIn 2010, the total production was 140

million units, up 8.54% year on year. In 2011 the global washing machine production will reach to 145 million units, up 3.28% year on year. And in 2012, he total will reach to about 149 million units.(Figure 3)

In 2010 the global economy is generally upward development, developed countries washing machine upgrade needs continue to maintain the washing machine market quantity; parts of the developing countries’ high economic growth promoted the rapid increase of washing machine consumption. In addition, washing machine market distribution has

obvious regional features, there is also a higher permeability rate and retention rate trend; many underdeveloped coun-tries economic conditions improved, and gradually started washing machine consumption.(Figure 4)

In 2010, the growth points of global washing machine were mainly in Asia and South America, and Asian sales was 58000000 units, up 14.85% year on year; South American sales was9640000 units, up 4.5% year on year.

View from the consumption situation, Europe is mainly drum washing machine; North America was drum washing machine except that USA is mainly

stirred washing machine; Asia and South America is mainly full-automatic rotary and twin-tube washing machine and the proportion of drum washing machine is improving continuously; Africa, Asia, South America and other Third World countries are mainly twin-tube washing machine; Middle East is lack of water, and in mainly assembled with import spare parts of drum washing machine and consumption type is mainly drum washing machine. (Figure 5)

The current major washing machine consumption countries are China, USA, Japan, Russia, Germany, Britain, and Italy. In addition to these several consumption

6.48%

4.56%

9.09%

5.00%

2.99%

8.54%

3.28%

2.14%

0.00%

10.00%

0.0000

0.2000

0.4000

0.6000

0.8000

1.0000

1.2000

1.4000

1.6000

2005 2006 2007 2008 2009 2010 2011* 2012*

Volume Y-Y growth

Figure 3 Global annual sales and predicted production output of washing machine

16.32%

6.84%

17.76%

12.78%

24.07%

17.05%

3.59%1.60%

0%

5%

10%

15%

20%

25%

30%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

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North A

merica

South Am

erica

Western Europe

Eastern Europe

China

Asia

Africa

Oceania

volume market share

Unit: 100 million units (*refers predicted production output)

Data source: Chinaiol.com

Figure 4 Regional distribution of sale market of washing machine in 2010

Data source: Chinaiol.com

CEAM - November - 2011 15

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countries, there were also some emerging washing machine consumption markets. In these markets, some were with larger development space because the popularity rate of washing machine in its domestic market was low, such as India. Some countries’ purchasing power improved driven by the improvement of income coming from the increasing of consumption materials, such as Brazil and Venezuela.

market characteristic –according to type

Washing machine market overall condition and type change trend has been obvious, although rotary washing machines developed rapidly with development of emerging market, the drum washing machine, with its own features-microcomputer control all functions, without clothes winding, and without loss of clothes washing mode, and with emerging market growth and economic growth, will eventually become a trend. The other manifestation of high-end trend is consumers’ function pursuit. Washing –drying machine, as a representative, the concept of life quality has penetrated into all aspects of people’s lives. Especially young consumer groups grow quickly contributed to the washing and drying machine market demand. Washing and drying machine will be the main trend of the development of washing machine in the future. To develop a washing machine with drying function is a specifi c manifestation of multi-functional, and adapted to the consumer demand. At present, in Japan, this type machine production has more than 30%. Frequency conversion technique application in washing machine has achieved rapid development. Under the leadership of low-carbon vane, washing machine opened a new era of frequency conversion. It is reported that, the application of the frequency converter technique not only has the advantages of energy saving, but also has a lot of advantages such as good stability, low noise, adjustable speed, high cleanness and high cleaning evenness. Frequency conversion washing machine is still at an early stage in our country, however, through the application on the high-end products, the next fi ve years will be the

Data source: Chinaiol.com

Data source: Chinaiol.com

33.9

18.5

6.7 6.7 6.7 5.4 4.2 4.1 3.7 3.5

47.6

24.07%

13.12%

4.78% 4.76% 4.76% 3.80%2.98% 2.90%2.60% 2.48%

33.76%

0.00%

10.00%

20.00%

30.00%

40.00%

0.00 5.00

10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00

China USA Russia JapanS.KoreaSouth AfricaGermanyBrazil Britain Italy Others

SALES MARKET SHARE

Figure 5 Country distribution of global major washing machine sales in 2010

Figure 6 Product type of washing machine in 2010 (According to capacity)

rapid development period of variable-frequency washing machine. In addition to the satisfaction of basic washing demand, the demand of people not only gradually turned to the higher cleaning ratio, less abrasion, more energy, but also began to pursue more beautiful and fashionable appearance and more humane functional design products.

In 2010, full-automatic washing machine remained the largest market shares, accounting for 63.1% of global sales. Twin-tube washing machine occupied 20%. The proportions of full-automatic drying machine and full-automatic washing-drying machine were

12.1% and 4%; single-tube washing machine was least, only accounting for 0.6%. (Figure 6)

Full-automatic washing machine, as the mainstream product, occupied the major parts all over the world. Relatively speaking, Asia and Western Europe occupied the most of market share. Twin-tube washing machine sales mainly concentrated in some Asian emerging markets and Asian countries whose purchase power relatively poor, such as India, Indonesia, Iran and so on; the major markets of full-automatic drying machine was still the South America and Western Europe.

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In 2010, the global economy recovered, major developed economies economy recovered, and the export situation improved. Our country is big washing machine exporter. Washing ma-c h ine has high dependence on exports. The export proportion declined con-tinuously from 2006. Due to the dual effect of global fi nancial crisis and governmental stimulation policies, the proportion was lowest in 2009. In 2010, exports recovered and export proportion picked up. (Figure 1)

During 2004-2007, total export vol-ume of washing machine increased, but the growth rate declined rapidly. In 2008, exports volume maintained a relatively stable growth.. In 2009, due to the impact of economic crisis, foreign market demand became smaller; and washing machine export was restricted, and export volume declined 12.5% year on year; in 2011, with the improvement of international economic situation, export demand was exuberant, and annual export volume was 18090000 sets(including Haier spare parts), up 28.7% year on year. (Figure 2)

In 2009, the international demand for washing machine was in a slump. Most washing machine enterprises exports were restricted by the bad economic situation. Samsung, LG and Haier export volume declined in different degree. In 2010, the export situation improved. The export volume of mainstream washing machines except Xinle and Sharp was large and achieved varying degrees of growth. Midea series and Samsung grew fastest, was 96.34% and 49% respectively.

View from the export market share of each brand, Midea series, Samsung, and LG are the top three, and their market shares are 12.6%, 12% and 10.3% respectively.

China exports situation

Figure 1 Comparison on total volume of washing machine industry from 2004 to 2010(10,000 sets)

Data source: Chinaiol.com

Data source: Chinaiol.com

Figure 2 Brand exports year on year trend of washing machine in 2010 (10,000 sets)

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Drum washing machine has gradually become the mainstream product of wa-shing machine export. Samsung, LG, Panasonic exports are mainly full-automatic drum washing machine, and full-automatic rotary washing machine only accounts for little proportion. Haier export products are relatively rich, that is, it involves full-automatic rotary, drum and twin-tube washing machine, and proportion is balance. Royalstar and Little Swan, belonged to the same series-Midea, show different characteristics in export product types. Royalstar’s full-automatic rotary occupied the largest proportion. And its export volume was 5 times as large as drum washing machine. While Little Swan –located in high-end products, is opposite, and drum washing machine is the main export product. And its export volume is nearly 6 times as large as full-automatic rotary washing machine. Xinle, Chenjia. Cixi Haili, and Cofl y are the main products of twin-tube washing machine export. (Figure 3/4)

Japan and Russia were still the main target areas of China washing machine export in 2010. The volume exporting to Japan increased 19.5% year on year, and export amount increased 29% year on year, accounting for 25.1% of total export amount. Russia followed, and in 2010 the export volume and export amount both increased signifi cantly, occupying 8.7% of export amount and increasing 2.5% compared to the same period of 2009. This shows that Russia has been out of the credit problem during fi nancial crisis, and import and export step into right track.

In 2010 Indian demand for our washing machine increased obviously, and growth rate of export volume to India reached to 98.59%, export amount growth rate was larger, reaching to 119%, and achieved doubled and redoubled growth. The demand for washing machine in India increased obviously, and at the same time, our country is the major export country of washing machine, which becomes the strong supplier to Indian demand. In addition, driven by Midea and Haier export trade, the growth rate of exports to Germany and France reached 107% and 112%. The share of export amount to Germany and France also increased, and reached to 2.7% and 2.25 from 1.8% and 1.4%.

In contrast with Germany and French,

in 2010, exports to USA and Indonesia both declined. The export amount to USA declined 14% year on year, and market share declined to 3.7% from 5.8%; the export amount to Indonesia declined 5% year on year, and the market share declined to1.3% from 1.8%.

View from the washing machine brand, Midea exports maintained leading position, Samsung, LG, Haier followed, and opened the export market in Russia, India, Iran, the UK, Italy and so on. Most

washing machine products of Hitachi, Sharp, Panasonic, and Toshiba exported to Japan, and export volume to Japan accounted for more than 88%, Sharp, Panasonic, Toshiba exports volume to Japan accounted for more than 95% of the total export volume. Hefei Sanyo also took Japan Sanyo orders in 2010, and most of washing machine products sold back to Japan, exports to Japan was 81830 sets, accounting for 31% of total exports. (Figure 5)

Data source: Chinaiol.com

Data source: Chinaiol.com

Figure 4 Exported countries Year-on-Year trend of washing machine in 2010 ( 10,000 sets)

Figure 3 Exported countries year on year trend of washing machine in 2010

18 CEAM - November - 2011

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Washing MachineFigure 5 C

ountry volume chart of w

ashing machine enterprise exports in 2010 (set)

Brand

JapanR

ussiaIndia

IranB

ritainU

AE

IndonesiaU

kraineA

lgeriaVenezuela

Others

Total

Midea

611474

18891828755

8486127534

5213715055

852127562

17499682287122

Sam

sung867818

38702154530

2973037956

11926208388

38890782754

2170694

LG32124

6795596211

23440133809

14622917955

7842212120

90661130138

1858430

Haier

13562430960

9488135173

13152914410

559780

8106461313008

Xinle

377369865

2162138274

1172522143

142101073

606261874472

Panasonic

6905072396

175704206

14661982

776807

Hitachi

724615396

125425192

751457

Jinshuai149189

246624472

4548618486

93199395

73118398474

730405

Chenjia

4620695563

36776570

29009152

63273151860

30298245794

682392

Sharp

5929881374

5436599798

Jinling148

2582195298

1331562

107461491

365342577500

Cixi H

aili4997

83325173763

243681558

2606173

908198080

489778

Cofly

70398

153015754

5513816

23344289404

347179

Toshiba338070

48338118

Sanyo

10850624951

3241033

333934

143652311863

More

1796548167

1759614003

14607241

134772241204

Feilong home

appliance5439

9007512

31313421

64045252

28902354

191107235592

Ningbo

Changfeng

14675215974

206010113

873497

49834981

211748

Lesli4290

1001842771

85882

10285108

44990166961

DA

EW

OO

2371124188

19561392

368106956

158571

Others

28123111620

123570122363

69336105029

15853437650

16439446927

20027312970277

Total2679271

15803891010130

775486566634

485676447885

434128409773

375296341064

18093376

CEAM - November - 2011 19

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Drying machine, as a kind of home appliance that could upgrading quality of life, because of its convenience and practicality, become popular among consumers, especially among the Eu-ropean and American consumers. View from the global market, annual drying machine sales is over 15000000 sets and the sales increase steadily along with the increasing of consumption demand.

I Global development of drying machine

1.1 well-known home appliance manufacturers capture global market of drying machine

View from the 2010 terminal data, Whirlpool Home Appliance Group is undoubtedly the enterprise who occupies the largest market share of global market of drying machine. Whirlpool as fl agship brand, distributes in North America, Latin, Europe and Asia, and occupies 14.9% of global market share. Maytag - the other brand of Whirlpool, also sells well in North America, Latin, Asia and Europe. The market share of Maytag follows the Whirlpool, reaching to 9.4%. Total maker shares of Whirlpool Group are 24.3%. Siemens Group is the enterprise occupying the second largest market share. Its two brands Bosch and Siemens occupies 5% and 3.2% market share respectively. The other well known home appliance enterprise Electrolux has three famous brands: Frigidaire, Electrolux and AEG. Their market shares are 3.9%, 2.1% and 2.0% respectively and total market share is 8%, ranking No.3. GE and LG ranks No.4 and No.5 and their market

Global Market and China Industry Development of Drying Machine

Figure 1 Global market share of drying machine enterprises in 2010

Data source: Chinaiol.com

Figure 2 Technical changes of drying machine

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shares are 7.4% and 5.2%. Germanic famous home appliance enterprise Miele occupies some market share, about 2.3%. ( Figure 1 )

1.2 Drying machine global product technology continuous escalating

Based on the changes of consumers’ actual using demand and the need to capture market share, each drying machine enterprise continue to develop new technology. Therefore, drying machine has gone through a number of technical upgrading from its birth. From the initial vertical type drying machine developed into condensing drying machine; from the traditional condensing drying ma chine upgraded to mort developed air condensing drying machine. ( Figure 2 )

New condensing drying machine not only breaks through the original water condensation drying method, using air condensing technology, energy saving and environmental protection, but also with other more advanced technology, so that the drying machine products function is more perfect. For example, Siemens launched a new blueTherm drying machine in 2009. This type drying machine is the fi rst product launch by Siemens, aiming at the over 900 Euro high-end condensing drying machine segment market. The special of blueTherm is its automatic lint removal system - a Spray device used to condenser. For the traditional condensing drying machine, the user must personally wash the lint fi lter which is diffi cult to access to by hands. The lint gathered in the condenser or fi lter will block the heat transmission, thereby reducing the effi ciency of the system. This new technology will pump condensate water into a tank at the top of drying machine, being used for lint washing during each drying process (4 times). The lint gathered in the tank could be automatically washed away when tank is empting. This makes the drying machine can maintain a low level of energy consumption in the entire life cycle.

1.3 Global regional distribution of drying machine

From regional distribution charact-eristics of drying machine global market, America, including the United States of American and Canada, is undoubtedly the

world’s largest regional market. The total drying machine consumption of USA and Canada is 6000000-7000000 sets, that is, nearly half of the annual global sales is in USA and Canada market. Europe followed, Britain, Germany, France and other countries are the main areas of consumption of drying machine. But by the environmentalists thought infl uence, some European countries are still prone to adopt traditional drying method to dry clothes, which is one of the reasons for Europe drying machine sold less than North America. Asian areas, Japan and South Korea are main consumption areas. Among them, Japanese drying machine popularity rate is higher. However, different from European and American market, Japanese drying machine is washing-drying machine, while European single dying machine.

II Drying machine development in China market

2.1 Independent drying machine meets resistance in China

Compared to the market scale steady growth in the global market, drying machine development is not very smooth in Chinese market. On one hand, Chinese consumer spending habits impede popularity of drying machine in Chinese market. Unlike the European and

American consumers, Chinese consumers are more accustomed to drying their clothes in the sunshine, which makes the consumer to the drying machine’s actual demand weaken signifi cantly. Without a strong consumption demand, there are a lot of diffi culties in promoting the drying machine in China. On the other hand, Chinese consumers’ living space is another factor restricting drying machine spread in China. A relatively narrow housing space makes independent washing-dying machine not suitable for Chinese consumers’ real life environment and level. Therefore, subject to the consumption habits and living space the drying machine market in China is relatively small.

In addition to Haier, Sanyo and other domestic brands launched a few drying machine products in Chinese market, whirlpool, Electrolux, Siemens, Bosch and other foreign brands also have drying machine product sales in China market, but they all are imported products. According to the General Administration of Customs statistics, from January to September in 2008, China import and export volume of drying machine are 513 sets and 45835 sets respectively, and export amount rose 14.89% year on year. The gulf between imports and exports refl ects the Chinese market demand for drying machine is weaker to a certain extent and refl ects

Figure 3 Comparison on import and export volume of drying machine in China market from January to September in 2008 (unit: set)

Data source: General Administration of Customs

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smaller market scale of drying machine. ( Figure 3 )

2.2 Washing-drying machine re-placing independent drying mac-hine and getting better

The so-called washing-drying integrated machine is a new type of washing machine products- the drying washing integrated to traditional washing machine. It not only has the traditional washing function, but also can dry the clothes automatically after washing them, achieving washing immediately and wearing immediately effect. Washing-drying machine is a product responsive to China market demand, and it integrates the washing machine and drying machine advantages of saving space. Therefore, washing-drying integrated machine develops smoothly in China market.

With the improvement of living standards, people demand on the high quality of life increases, China washing machine market facing the core requirement is not a simple technical point, but a comprehensive systematic complete technology solution of life laundry washing. That is, the consumer s’ pursuit is the enhancement on quality of life coming from the washing methods. The washing-drying machine achieves the washing- dehydration– drying one-stop function and can bring consumers more convenient way of life. It is undoubtedly in line with the Chinese high-end consumer interests demand for washing machine products and becomes the product promoting quality of life. In addition, in high humidity areas of the south, cold and humid rainy season and winter weather will also stimulate the actual demand for drying machine to a certain extent. Therefore, we can say that China washing machine market has huge washing and drying integrated machine consumption demand.

Based on the good and huge market demand for washing-drying machine, washing-drying integrated machine has become the key product for many Chinese enterprises to capture the high-end drum washing machine market from2009. On one hand, they have launched their own washing-drying integrated machine products, and enhance value-added space with the help of this new product and establish a high-end brand image; on the

other hand, washing-drying machine, as a high-end product, its thousands price can bring more profi ts, thereby increases enterprise overall gross profi t. The popularization trend of washing-drying machine is seen by enterprises, the enterprises have increase drive strength for washing-drying machine.

Driven by the joint force of washing machine mainstream enterprises, since 2005 China’s fi rst washing-drying mac-hine production line offi cially put into operation in Haier, demand for washing-drying machine in China market is warming up gradually. Chinaiol.com data shows that high-end drum washing machine with drying function product sales accounts for more than 75%. In recent two years, the domestic washing-drying machine sales growth is about 40%. Washing-drying machine is quick access to Chinese consumers’ family. ( Figure 4 )

2.3 The main market of washing-drying machine—tier 1 and tier 2 market in south areas

The washing-drying integrated mach-ine sale in the Chinese market has obvious regional characteristics: southern tier one and tier two market sales are far higher than in other regions. It is mainly determined by weather factors and practical life level. On one hand, weather in South China is

more humid, and the clothes is not easy to dry after washing, which may infl uence people’s life, therefore, consumer demand for washing-drying machine in this area is relatively exuberant. On the other hand, the washing-drying machine is not cheap, generally speaking, the price is above 5000 RMB. It is a big fortune for most Chinese customers, especially the customers in rural areas, which restricts the washing-drying machine popularization in all Chinese regions to some extent and thus the south tier one and tier two market popularity rate is high. Chinese washing machine manufacturing enterprises, whether domestic brands or foreign brands, brand, are much more likely to develop southern tier 1 and tier 2 market. For example, China household electrical appliances leader brand-Haier, its washing-drying integrated machine products are mainly for tier 1 and tier two market in East China and South China areas. The demand in tier 3 and tier 4 is smaller and regional characteristic is obvious.

2.4 Washing-drying machine pro-ducts continuously upgrading and condensation drying technology popularity gradually

Similar to dying machine class-ifi cation, according to different drying techniques China washing-drying mac-

Figure 4 Market share of washing-drying machine in China high-end drum washing machine market

Data source: Chinaiol.com

22 CEAM - November - 2011

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hine is also divided into three categories: Natural air drying, heat drying and condensation drying. Heating drying also divided into galvanothermy tube heating, PPC heating and so on. At first, China most washing-drying machine products used heating drying technology, but this kind of washing-drying machine has two inevitable drawbacks: one is that whether the galvanothermy tube heating or PPC heating, drying time and degree are not easy to control and easy to damage the clothes; the other is that during drying process it produces high temperature and high humidity air and the air exhausts directly from the machine, which is easy to bring machine surrounding environment negative influence-high temperature and humidity.

Comparing with heating washing-heating machine, condensation washing-drying machine can protect the clothes. The hot and humid air produced during drying process became condensing water and exhausted outside machine, which does not have any negative infl-uence on machine surrounding env ir-onment. Therefore, condensation dry-ing technology is more advanced and more used in products. Condensation washing-drying machine is divided into 2 categories: one is water condensation washing-drying machine. It adopts water condensation technology, i.e, using water as the medium, first cools the water vapor and waste air, and exhaust outside machine after becoming water. Such condensation drying technology needs a larger quantity of water, even ten times as large as washing water.

In recent two years, some Chinese washing machine enterprise launched new washing-drying machine with more advanced condensation drying technology—air condensation washing-drying machine. Such kind products adopted natural cold and hot dual air exchange principle, using air as the medium, cool the circulating air through dry-wet switch. The whole drying progress does not consume a drop of water-achieving drying without water. Different from the traditional washing-drying machine-needing a large quantity of water to cool down, the obvious characteristic of this kind product is that it can save more water, more suitable for using in water-deficient cities and more in

line with today’s Chinese domestic energy conservation and emission reduction direction.

2.5 Enterprises spare no efforts to promote new product of co-ndensation drying machine

Since 2005, with the washing mac-hine high-end products’ robust growth

continuously, Chinese washing machine mainstream enterprises, such as Haier, Sanyo, Toshiba, Midea, Panasonic, Siemens, Candy and so on, in order to capture segmented market share, have launched their own new products of washing-drying machine. Panasonic in 2009 and Haier in 2010 also applied drying technology to rotary washing-

PanasonicRotary variable-frequency washing-drying machineModel: XQB80-GD810

Samsung LCD variable-frequency dying seriesModel: WD7602R8W

Bosch“drying in the beach sun” washing-drying machineModel:WVH28468TI

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drying machine, and treat it as the difference products in order to occupy the high-end washing machine market. Because rotary washing machine is different from drum washing machine, their technical characteristic determined that rotary washing machine is difficult to embark upon drying function. Enterprises’ breakthrough in such technical difficulties makes the washing-drying function is no longer “the patient” of drum washing machine, and rotary washing machine also can apply.

Beginning from 2009, in recent two years, along with the condensation drying technology becomes mature and expansion of application scope, there emerges a lot of new products of condensation washing-drying machine in China market. The following lists several representative products.

Panasonic XQB80-GD810 rotary vari-able-frequency washing-drying machine. Highly efficient condensing drying has been Panasonic leading technology and Panasonic is proud of this leading technology. The biggest characteristic of such kind of rotary washing-drying machine is its successfully application of Panasonic inclined drum washing-drying machine Alfa series condensation drying technology. It uses the fresh air. The fresh air heat by the Panasonic special intelligent PTC electrical auxiliary heating device and form a large area warm who could taking away the water in clothes. Moist

air became water through the condenser and exhausted from drain pipe, which achieves truly washing im m ediately, drying immediately and wea ring immediately convenience realm. Meanwhile, according to the different clothes drying requirements, it also has a variety of intelligent drying program selection.

Samsung WD7602R8W washing machine is a 6 kg capacity drum wa-shing machine belonging to Samsung Liquid Crystal Display (LCD) variable frequency drying series. Its body is white, dehydration speed is 1200 RPM (rotation per minute), and drying capacity is 3 kg. The most worth mentioning of Samsung LCD variable frequency drying series is that it uses high efficient condensation drying technology. When drying, dry air comes into the tube, through the heat exchange with wet clothes, wet air becomes water after cooling and then exhausts through the drain pipe. High efficient condensation system can fully cool down the vapor generated during drying inside washing machine. Therefore, when drying, we will not feel the water vapor generated in the washing tube outside machine and it will not create hot and humid external environment. Meanwhile, when drying clothes, ordinary frequency function makes the machine could frequency regulate rotation speed and rotation strength according to the quality and quantity of clothes, so as to achieve the effect of clothes protection.

Bosch “drying in the beach sun” washing-drying machine applies wash-ing machine compressor, unique air condensation technology, and the special ‘drying in the beach sun” uses natural cold and hot dual gas exchange principle, through wet and dry heat exchanger cool the temperature by circulated air, and achieve drying without water. It can save 30L-90L water compared to traditional washing-drying machine. In addition, By monitoring, of 3 sensitive NTC sensor and PID temperature-controlling techniques, this product can automatically identify the laundry humidity and temperature changes in the drum and automatic select drying power, supply heat according demand--green environmental protection as well as saving family expenditure.

Midea introduced Van Tai Lo variable-frequency drum washing machine this year. There are deep blue, aurora green, crystal violet and black truffles four series. Van Tai Lo new washing machine not only uses steam washing and spray washing water recycling technology which dramatically improves the laundry cleaning effect. More importantly, the product also applied the principle of condensing, with a high efficiency condensing system and intelligent temperature and humidity sensing system, condensing effect has also been significantly improved, and achieves full intelligent drying.

Midea introduced Van Tai Lo variable-frequency drum washing machine

truffles black crystal violet deep blue aurora green

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Little Swan, which was established in 1958, is one of the top washing machine manufacturers in China. In 1978, China's first full-auto washing machine was born in Little Swan. In 1990, Little Swan got the unique award of gold medal of the State Quality Prize and received gold medal of "Trustworthy Brand" awarded by the U.S "Reader's Digest" for the third time in 2009.

Little Swan established the national class enterprise technical center as well as nationally-authenticated laboratory. Based on strategic technology alliance and persistent innovation, Little Swan owns international-advanced core washing technologies like frequency conversion technology, intelligent driving control, construction and industrial design etc.

Every year, more than 100 new products are launched into market by Little Swan who owns 596 washing machine patents. Through the cooperation with international well known brands, Little Swan keeps improving company's international operation management and passed the National Free Inspection Product Authentication and Inspection-free Authentication for washing machine export prior to the other washing machine manufacturers.

Midea, who is the largest white electronic appliance manufacturing and export enterprise, acquired Hefei Royalstar washing Equipment Manufacturing and entered washing machine industry in 2004. In 2008, Midea further stepped and became largest stakeholder of Little Swan. Midea enhances and strengthens its washing machine business by utilizing the cooperating effects of Midea and Little Swan on product capacity, R&D, marketing channel, supply chain, operation system.

In Feb 2010, Midea brand became "World Top 500" valuable brand , and is the only one China appliance company who won the honor.

Today, Midea has developed to one of the world's largest washing machine manufacturer which is capable of researching and producing all types of fully-auto impeller type, rolling type and agitator type.

It's estimated that Little Swan Wuxi and Royalstar Hefei production bases are capable of producing over 10 million washing machines annually, with more than 2 million for oversea market, winning the favor of 35 million customers all over the world.

Wuxi Little Swan Co., Ltd

ADD: No.18 SOUTH CHANGJIANG ROAD WUXI CHINATel: 86-510-81082527Fax: 86-510-83703143Zip: 214028E-mail: [email protected] / [email protected]://www.littleswan.com

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Front-loading

Series:Sicily

Capacity Range: 4.5/5/6/7KG

Spin Speed Selection: 4.5kg:600/800/1000;

5kg:600/800/1000/1200;

6kg:600/800/1000/1200/1400;

7kg:600/800/1000/1200/1400;

Features: "15’ quick wash

LED Indicator

Drum clean

Power-off memory

Spin speed selection

Temperature selection"

MFS45-S1003/A0812 MFS50-S1004/A0912 MFS50-S1005/A0712

MFS50-S1006/A1012MFS50-S1007/A0712

Front-loading

Dryer

Series:Explorer

Capacity Range: 7kg

Product Type:Condensing Type

Features: "Condensing Type, LED, Electrical

Humidity Level Sensor

ChildrenLock, Opoque Door"

MDE70-C11/E0209E-EU18 MDE70-C12/E0316E-EU18

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Washing Machine

Dryer

Series:Sicily

Washing Capacity:MAS50-S0611G/F(5kg)

MAS60-S0711G/F(6kg)

MAS70-S1411G/F(7kg)

MAS50-S0612G/F(5kg)

MAS60-S0712G/F(6kg)

MAS70-S1412G/F(7kg)

Features:"Memory of Power Interrupt

(Power-OFF Memory)

Fuzzy Logic Controls

Tub Clean

Transparent Plastic Window Lid

Series:Jade

Washing Capacity:

6kg

Features: “Air Dry, LED Display

Memory of Power Interrupt

(Power-OFF Memory)

Fuzzy Logic Controls

Transparent Plastic Window Lid

Magic Cleaning Filter”

MAJ70-S501EGMS

MAS50-S0611G/F,

MAS60-S0711G/F,

MAS70-S1411G/F

MAS50-S0612G/F,

MAS60-S0712G/F,

MAS70-S1412G/F

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Twin Tub

Series Washing Capacity Model NO. Pic Features

Jade 7KG MTJ70-P1403S

1.Double Waterinlet2.Water&Power Separation3.Big Stalinite Lid4.Fully Plastic Cabinet 5.New Deisgn Knob

Jade 10KG MTJ100-P1103S

1.Double Waterinlet2.Water&Power Separation3.Big Stalinite Lid4.Fully Plastic Cabinet 5.New Design Knob

Jade 10KG MTJ100-P1104S

1.Double Waterinlet2.Water&Power Separation3.Stalinite Lid4.Fully Plastic Cabinet 5.New Design Knob

Explorer 12kg MTE120-P1201Q

1.Waterinlet Selection2.Water&Power Separation3.Optional Transparent Lid 4.Optional Chrome-Coated Knob5.Fully Plastic Cabinet 6.Air Dry Lid7.Optional Waterinlet filter8.Optional Ag+ Pulsator

Explorer 6kg MTE60-P1302S

1.Double Waterinlet2.Water&Power Separation3.Optional Transparent Lid 4.Optional Chrome-Coated Knob5.Fully Plastic Cabinet 6.Air Dry Lid7.Low Power Motor

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Lesli Group was established in1993 and now is an integrative industry enterprise that specializes in developing, manufacturing and marketing various types of home appliances, electronic product and industry project.

Lesli Group has been one of the leaders in the Chinese washing machines industry for 20years.The new Lesli factory is located in Ningbo, the second largest seaport city in China. Our manufactory has a capacity of producing more than one million washing machines per year.

Lesli Group has a complete quality management system and has received the ISO9001:2000 quality system authorization certificate and ISO 14001:2004 environmental system authorization certificate. Our products have successively passed international certifications such as CE,SASO,CB etc. And we have received many international patents for our practicability, innovation and design.

Lesli Group products sell worldwide. Lesli has successfully entered more than 50countries in Asia, Middle East, Eastern European, Latin America and Africa. We have registered our LESLI brand in more than 10 countries.

In 2009,LESLI CANADA was established as the first overseas subsidiary company in Toronto, Canada. The mission of LESLI CANADA is to serve to the North, Central and South American Market

Ningbo Lesli Import and Export Co., Ltd is another international trading company in the Lesli Group. On top of the regular washing machines exportation, this branch company also imports raw material, commercial laundry machines, dry cleaning machines, etc.

NingBo LESLI Industry CO.,LTD

ADD: NO.68 DongWu Stretch, YinXian Avenue, YinZhou Distribution, Ningbo, ZheJiang Province, China . Zip: 315113Tel: 0086-574-88356276Fax: 0086-574-88355526Email:[email protected]://www.lesli.com.cn/english/main.asp

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Washing Machine

Founded in 1980, Ningbo Xinle Household Appliances Co., Ltd. (previously Ningbo Washing Machine Factory) is a company which has obtained National Production Permit and self-support export right with 27 years brilliant history of manufacturing washing machine. Moreover, Xinle brand washing machine is one of the earliest washing machine brands.

With a total capital of 1 billion RMB, the company boasts of 250,000 square meters of production site, 215 professionals of 1252 well-educated staff; annual production capacity of 3,000,000 sets; develops 20 series of more than 200 types of products whose middle and high class machines meet the needs of various consumers; thousands of marketing branches spreading across China except Taiwan and Tibet, exporting its products far to more than 80 countries and regions in Eastern Europe, South America, West Asia and the Middle East; its sales indexes ranks top in the industry and becomes a powerful one of household appliances manufacturers in Zhejiang Province.

Offering high quality products to customers is the firm belief and constant goal of Xinle’s Staff and the key competitiveness of our company. The quality system established by our company passed the certification of ISO9001:1994 of German Rhine Techonology Co.,Ltd. in 1999, and the certification of ISO9001:2000 of the company again in 2000. Our company also introduced the advanced management modes such as “5S” and “6 σ”.

All of our products have been certified by national CCC, part of our products by various international standards such as CE, CB and SASO. In 2002, our products were entitled as “National

NINGBO XINLE HOUSEHOLD APPLIANCES

ADD: 661 Yinfeng Road, Haishu District, Ningbo, ChinaTel: 0574-87491486Fax: 0574-87494954 87494948Zip: 315012E-mail: [email protected](International), [email protected](Internal)Http: //www.xinle.com/en-index.php

Free-inspection Product”, and “Zhejiang Famous Brand Product” and “Zhejiang Famous Trademark” for many times. Also, our products as the first batch in the industry passed the certification of China’s “5A” system in April 2003. Xinle washing machine was entitled as National Famous Brand Product and became one of the five famous brand products in 2004.

With the corporate spirit of “innovation and devotion” and the work style of “perseverance and innotation”, Xinle’s Staff have been devoted to building Xinle brand, developing China’s machine industry and creating more value for customers.

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Washing Machine

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Washing Machine

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Washing Machine

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PART2: Upstream

Brief Description on the Current Motor Application Situation of Washing Machine

Washing Machine Draining Pump: Easy but not Simple

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Motor, as the major motive power of washing machine, its performance largely determines the operating performance, that is, determines the quality of washing and drying, noise, vibration and so on. Drum washing machine motor is the Class A key accessory of household full-automatic drum washing machine, and the drive accessory of washing machine operation. With the continuous development of drum washing machine technology, the requirement for its motor is also rising, which promotes motor technology development. At the same time, the cooperation of motor and control system provides a reliable guarantee for the technology progress of drum washing machine.

Average annual growth of application market is 21.5%

Rotary washing machine has occupied the absolute advantage in the Chinese market for many years, but with the social progress and the development of times, the demand for drum washing machine increased year by year as well as market shares. According to Chinaiol.com, during 2007-2010, the household washing machine production reached to 50000000 units from the nearly 34000000 units in 2007. And drum washing machine annual output reached rapidly to 11180000 units in 2010 from the 6240000 units annual output of 2007. The growth rate was 21.5% and market share reached to 22.3% in 2010 from 18.5% in 2007. Drum washing machine market expansion also promoted the development of variable-frequency drum washing machine. With the wide application of frequency conversion technology in the fi eld of

home appliances, variable-frequency drum washing machine as a new thing is gradually accepted by consumers and developed rapidly. According to Chinaiol.com in 2010, the drum washing machine was 2607000 units, up 90% year on year. In the fi rst half of 2011, China drum washing machine was 1654000 units, up 70% compared to the same period of last year. ( Figure 1 )

Series motor is still the mainstream and frequency conversion motor develops rapidly

The sales fl ourishing of domestic drum washing machine promote the development of drum washing machine motor market. People pay more attention

to drumming washing machine motors’ model, performance features and desi-gning and reforming technologies. The motors for drum washing machines have several types such as dual-speed motor, series motor, 3-phase frequency-variable motor and brushless motor.Early non frequency drum washing machine is mainly dual speed motor and, series excited motor, while now most are drove by series excited motor. According to Chinaiol.ocm, the drum washing machine with series motor occupies 75.7% of overall drum washing machine. Driven by the domestic sales fl ourishing and leading by home appliance Technical Innovation, The three-phase frequency-variable motor, DD brushless motor gradually applied

Brief Description on the Current Motor Application Situation of Washing Machine

Figure 1 China washing machine production

Data source:ChinaIOL.com

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to drum washing machine. Such drum frequency conversion motor occupies 24% of drum motor demand and grows rapidly. For drum washing machine, each motor has its own feature and according to different demand of overall machine clients, motor enterprises reforms the technology continuously in order to coordinate. ( Figure 2 and Sheet 1)

1. 1. Series motorCurrently drum washing machine

assembling in China is absolutely dominant by series excited motor, which is beyond doubt whether viewing from the data or form consumer acceptability. Series motor on the rolling washing machine has good effect and very good control performance, the rotation speed thereof can be easily changed by means of adjusting voltages, and the torque- rotation speed curve thereof has hyperbolic characteristics, which is very useful for self-protection of the washing machine, especially in the high-speed spin-drying period, because the rotation speed of the motor can be automatically adjusted to protect the motor and the washing machine when the washing machine loads are changed, which is cannot be achieved by the induction motor and the brushless motor. The washing machine torque is very large at low rotation speed, and suitable for operation of the washing machine, and the rotation speed is very high and suitable for dewatering operation of the washing machine, it can be said that the load requirements of the rolling washing machine are well matched with output of the series motor.

The series motor is low-cost, convenient to control, even in Europe, there are still a considerable number of drum washing machine adopts series excited motor. Stable technology and machine’s relatively low price are the most important factors. While the fundamental reason is: European and American enterprises whose drum washing machine technology is more advanced have not yet transfer their its core technology to China. The brands like Siemens, whirlpool, and Candy that has already entered the Chinese market, their core product is drum washing machine which still used series excited motor, and from the technology, accessories application, and materials application

are also more advanced compared with domestic washing machine brands. In short, this kind of drum washing machine is still the mainstream of Chinese market. In t China, Aopulai, Welling, Sanjiang, Haier and other motor enterprises possess the ability of mass production, in addition, the enterprises who mainly producing rotary motor in the past ,such as Weikang and Jingma, also assembled series motor production lines. The completed machine enterprises, only LG fully gave up the series excited motor, the applications of series motor is still common in Hefei Sanyo, Haier, Samsung, Little Swan and other enterprises, and some completed machine enterprises such as Toshiba who has popularized the DD motor are considering producing some drum washing machine with series motor in order to achieve market share growth.

Series motor also exposed shortcomings caused by its own structural characteristics during using process: fi rst, the series motor structure is complex, rotor current can be performed mechanical commutation through the commutator and the carbon brush, sliding friction between the commutator and the carbon brush is easy to generate mechanical wear, noise, sparks and electromagnetic interference,

enabling motor reliability to be reduced, which limits application of the series motor to a certain extent, especially for noise problems occurred due to friction of the commutator and the carbon brush at high-speed spin-drying period, and becomes the most fatal fl aw of the series motor.Now the motor manufacturer has made a lot of research to improve the series motor noise, such as Aopulai motor company, it launched a mute motor through the improvement of design and improvement on process, and it could reduce 3 Decibel (Db) sound power when working at high speed and has successfully achieved mass production. The majority of drum washing machines launched by Siemens in China are driven by series excited motor, but the washing machine noise control and shock mitigation system are in a higher level, so the noise is relatively low. It proves that series motor noise disadvantage can be improved through technical upgrading. And this is one of the reasons why series motor remains longstanding charm for many years.

2. The three-phase frequency-variable motor

The three-phase frequency-variable motor is the early driving system of

Figure 2 Proportion of mainstream drum washing mac-hine motor in China

Data source:ChinaIOL.com

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variable frequency drum washing machine, and is mature in technology. The first variable frequency drum washing machine motors are mainly the three-phase frequency-variable motor. WUXI LITTLE SWAN GENERAL APPLIANCE CO., LTD bears the United States General OEM business, as early as 2004, the company began to produce big capacity drum washing machine with the three-phase frequency-variable motor for American market. Samsung launched drum washing machine applied the three-phase frequency-variable motor in China market in 2005.

The three-phase frequency-variable induction motor can be classified into two types according to the structure: integrated motor, which means that the motor control panel and the body are assembled together; split-type motor, which means that the motor body is installed on the outer drum of the washing machine, but the motor control panel is separately installed on the case of the washing machine. Integrated motor is relative cheap, but the demand for motor control board’s reliability is high (the most representative is the motor assemble in Little Swan from GE). Nevertheless, integrated frequency conversion motor

is dominate in domestic market, such as Aopulai integrated frequency conversion motor has been supplied to Haier and other washing machine manufacturers in a large quantity. Because the research and development of The three-phase frequency-variable motor and the corresponding controller was by European and American enterprises initially, European and American motors are dominate in the field of such kind of motor. The representatives of the foreign-funded enterprises are Emerson, GE, and Aopulai. After years of market cultivation and development, the cooperation of the three-phase frequency-variable motor and its controller has reached to a higher standard, and becomes mature gradually.

In recent years, Haier, Panasonic and other enterprises have launched drum washing machine with the three-phase frequency-variable motor. Along with a number of domestic and foreign brands introducing the variable frequency motor, Siemens and other brands launched a variable frequency drum washing machine products. Compared to DD motor and its controlling system, the three-phase frequency-variable motor and the corresponding controller supporting

technology developed earlier and has a greater power output (can drive more than 10kg capacity, which is DD motor is difficult to achieve),and technology is more perfect; the top rotation speed of series motor is not more than 16000 RPM when dehydration, while the top rotation speed of the three-phase frequency-variable motor can reaches to 18000 RPM, and because there is no friction between carbon brush and commutator, the noise is lower. In China, the three-phase frequency-variable motor favored by the most washing machine manufacturers, and has been assembled in drum washing machine in a large quantity.

3. DD motorDD is short for direct driver, so the DD

motor is also called direct driver motor. Drum washing machine assembled by DD motor is high-end product in China.

The appearance of DD motor technology breaks the convention-drum washing machine consumes more water than rotary washing machine, and it also the drum washing machines’ vibration problem and noise problem. Drying drum washing machine with DD motor, the thinnest is only 44 cm, providing effective

Sheet 1 Product layout of major washing machine motor enterprise in China

series excited motorthree-phase frequency conversion

motorDD motor

Welling ●Sanjiang ●

Haier ●Aopulai ● ●

GE ● ●Emerson ● ● ●

F&P ●SHIBAURA ●Amotech ●

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premise for development of embedded washing machine. DD brushless motor mounted in the outer barrel of washing machine direct drives drum rotation, and omits a belt drive. At the same time, because the DD motor is highly efficient permanent magnet brushless motor, compared with the common motor, it can save about 35% energy, the DD motor drum washing machine in energy consumption are not inferior to rotary washing machine. However, as it involves washing machines’ overall structure, it needs to re-design and change is big. In addition, there also exists the belt drive brushless motor in the market, which can direct replace the existing series motor and without any change in structure, and because the belt drive brushless motor efficiency is high, therefore the efficiency of such brushless motor produced by Askoll can reach 70%, and it has supplied to customers in a large quantity.

Comparing with The three-phase frequency-variable motor, DD motor also has technical difficulties in application, for example: corresponding matching controller has not been fully resolved; drum washing machine driven by DD direct-drive motor in the 10kg is a bottleneck, now there is little enterprise can achieve above 10 kg driving; comparing washing machine with The three-phase frequency-variable motor, DD motor is more expensive (not only the motor system, the controlling system is more complicated). Now this kind of washing machines’ core technology was mainly controlled by Japanese and Korean enterprises, some domestic enterprises, such as Haier, and Little Swan have introduced the drum washing machine with assembly DD motor, but the motor and controller are mainly purchased from overseas, and their mastery of technique is still at researching stage. As far as the author know, some Chinese enterprises are developing this kind of motor, but they are still in small scale level, and do not achieve mass production.

In addition to Japanese and Korean DD motor manufacture enterprises, the largest production enterprise in China is Hefei Sanyo Motor Industrial Park; SHIBAURA and Amotech also have mass production and supply to Haier, Little Swan and so on. Samsung and LG achieve supplying through producing

in China or importing from Korea. The whole machine, Samsung and Panasonic increased production significantly in 2011, washing machine applying DD motor replaced the series motor and The three-phase frequency-variable motor; LG achieved fully application of DD motor; Haier and Little Swan gradually stepped into recommendation status.

The future market anticipationWith the demand of consumers

improves, washing machine and its motor will develop into high power density, energy-saving, environmental protection (low noise), and intelligence. Despite the brushless motor increase its controller cost and the total cost is high, which is

the same as the three-phase variable frequency conversion motor, but with the rapid development of power electronics, controller’s manufacturing cost will soon fall, brushless motor and a three-phase variable frequency induction motor will gradually replace string stimulated motor and becomes the mainstream of drum washing machine motor. At the same time, driven by demand in the market, China motor enterprises will gradually achieve volume production of variable frequency conversion motor. Then the motor, as the important part of drum washing machine, its technology will continuous be breached, its price will be gradually reasonable, and the supply situation will be diversification.

DD motor

Series excited motor

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Washing machine draining pump is used for draining washing machine. It is applied to most of the drum washing machine and a small amount of rotary Washing Machine. It is one of the main components of washing machine. According to their driving mode, they can be divided into two categories: induction machine draining pump (asynchronous motor drive) and permanent magnet motor draining pump (permanent magnet motor drive). According to different capacity of drum washing machine, the specifi cations range from 25mm to 40mm. Compared to other parts such as motor, draining pump seem inferior in unit price, technical specifi cations and so on, but with the improvement of washing machine technology and standards, draining pump products attract more and more industrial attention.

Competition patternAfter years of competition and

company merger and restructuring, washing machine industry production and manufacturing tends to be concentrated, at the same time, draining pump industry also engaged in constant adjustment. The washing machine draining pump supply system presents such a situation--supply tends to be concentrated and technology constantly updated.

Now the world’s major brands include Electrolux, Whirlpool, Siemens, LG, Samsung, Fagor Brandt, Italian Indesit, arcelik, Panasonic, Haier, Midea series etc., and they occupy the most of market shares. While view from world’s draining pump market, it has been monopolized by a few large brands. The annual demand

for washing machine draining pump in global market is about 40 million sets, and fi ve enterprises-ASKOLL, Hanyu, HANNING, Copreci and LEILI-occupy about 85% market share.

Looking at the global mainstream draining pump enterprises in details, Italian ASKOLL undoubtedly occupies the largest market share and has strongest ability. ASKOLL builds factories and offi ces in Italy, Brazil, Mexico, USA, Romania, Slovakia and China. Supply: arcelik, Samsung, Whirlpool, Haier, Candy, Indesit and other global mainstream washing machine

manufacture enterprises. ASKOLL also occupies a larger market share in China with the help of its global accumulated market share. Chinese domestic clients are Haier, Candy, Siemens, Whirlpool and so on, and it also export to Europe, North America, Korea and so on.

Hanyu is China’s domestic enterprise, and develops rapidly in recent years. It has developed into a second largest enterprise in the world and the largest supplier of draining pump in China. Relying on China’s huge market demand, by virtue of its advantages in price, technology, and market, its sales occupy most of the

Washing Machine Draining Pump: Easy but not Simple

Figure 1 Global draining pump enterprise competition layout

Data source: Chinaiol.com

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drum washing machine market in china and also export to European, North American, Oceania and Asian markets; the main customers are Haier, Samsung, Midea, Electrolux, Toshiba, GE and so on so forth.

Copreci is Spain’s largest conglomerate Mondragon Corporation (MCC) subor-dinate components manufacturing com-pany. It has seven factories all over the world, and respectively located in Spain (Headquarters), Italy, Czech, Turkey, Mexico, Brazil and China. Copreci builds factory producing air valve and other parts in Zhuhai, China. While the draining pump mainly export-oriented in China, and major customers concentrated in Europe.

Germanic leili is the fastest growth enterprise. With its rapid growth in recent years, it has become the world’s fourth-largest draining pump enterprise. And well-known washing machine enterprises have become its customers, such as Electrolux, Panasonic, Samsung, Haier and so on. Since leili building factory in China in 2001, it develops rapidly. Its products not only supply to Chinese enterprises, but also export to USA, Italy, Korea and other countries and regions

In the Chinese market, in addition

to the previously mentioned ASKOLL Leili, and Han Yu doing well, Yuhua is China’s larger manufacturers. Compared with their powerful background, Yuhua is more simple and pleasant, but its products are still applied to Haier, Midea and other well-known enterprises.(Figure 1/2)

Technology and standardsThe relatively humid environment

of Washing machine using makes special requirements on draining pump products: mainly put forward relatively strict requirements on waterproof. To solve this contradiction--waterproof and heat dissipation, enterprises need to put forward more valuable research approach.

Along with the diversification of washing machine products, mini washing machine and large capacity washing machine market is gradually rich. Low power and high performance washing machine pump also allows an increasingly diverse product variety. In addition, drum washing machine, as a high-end product, needs draining pump to provide longer life requirements, while brushless pump becomes the development tendency of the industry.

In terms of Materials, The technical

improvement of enameled wire from copper to aluminum material leads to higher requirements on the overall performance of products. In addition, the improvement on the level of production line is very important for overall performance and noise control. In2010, ASKOLL replaced a new pump production line, in the factory in Qingdao, China, that is, automatic production line model. Its accuracy and efficiency are higher, and the overall performance of products has been greatly improved. And it also enhances the competitiveness of its products.

Because the draining pump products are relatively standardized, how to find out various differentiated market positioning in standardization and gain more market share, enterprises need to invest more costs, break the patent blockade, solve the bottleneck problem, develop a higher performance and meet the differentiated needs of the global market, which has become the main challenges of each major manufacturer.

Compared with Europe and the United States, there still are a considerable number of small and medium-sized pump manufacturers in China except mainstream enterprises.

Figure 2 China draining pump enterprises supply layout

Askoll Hanyu leili hanning Yuhua Copreci

Samsung ●LG ● ●

Haier ● ● ● ●Whirlpool ● ●

Candy ● ●Midea ● ● ● ●

Simense ● ●Beko ● ●

Panasonic ●Sanyo ● ●

Data source: Chinaiol.com

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Based on considering the washing machine components standards, in January 2011, China held washing machine parts industry standard validation meetings-” Technical Requirements for Inlet Valve of Washing Machine and Technical Requirements for Drain Pump of Washing Machine” in Shenzhen, Guangdong. The two standards examined and approved by the conference have been approved by Ministry of Industry and Information and are expected come into force formally in the late 2011 and early 2012. These two standards are the first standards that the made by washing machine industry aiming at parts. Although they are recommended industry standard, and are not particularly strict, they are of great significance for Chinese washing machine industry. The two components standards are not used to delineate the threshold of the industry, more important they want to regulate the production through a unified approach. According to the enterprise, before the introduction of these two standards, China’s washing machine industry standard is more focused on the machine, and there is no unified standard for parts. Parts enterprises produced the parts according to their own standards and machine enterprises’ procurement specification. In this process, machine and parts enterprises often dispute, and the introduction of these two standards will provide the necessary standards for resolving these conflicts and disputes.

Pressure and challenges The result of globalization of pro-

duction is that global supplying system of machine and accessories manufacturing is more and more complete, meanwhile, manufacturing production continuously transfer to the low-cost, high-potential areas. China is undoubtedly an important country with these two features. Low profit in household electrical appliance industry, labor-intensive, low technical barriers have been making global washing machine industry chain transfer to China.It is foreseeable that in the next decade, China’s washing machine draining pump industry will become the important supply source of global washing machine like control board industry. During the transfer process of capacity and internationalization process of sales, Exchange rate pressures is undoubtedly

one of the five mountains that Chinese manufacturing enterprises face (exchange rate, raw materials, labor costs soared, the tight monetary policy, weakening external demand). Because the current draining pump market is mainly in foreign market, the constant changing of export exchange rate makes the meager profits industry worse and worse.

In terms of cost, with fluctuations in the raw materials market especially the prices of steel and copper, draining pump product is facing enormous cost pressure ( the cost of copper accounted for 30% ~ 40% of drainage pump cost), coupled with the competition between the enterprise, in addition to performance and supporting, price is an important factor. In the fierce market competition, it will face the risk of quilt because of slight carelessness in procurement of raw materials and processing. Meanwhile, China’s household electrical appliance industry accessories supplying system has existed a variety of” hidden rules”, payment and cash flow is also the problems that enterprise must face.

Under the dual pressures of cost and continuous declining of draining pump prices, technological improvements is the challenge that enterprises have to face, with the completed machine enterprises’ more and more complex requirements, improvement needs for noise, life, mechanical properties, electronic

supporting and other will become more intense, and it also provides draining pump enterprise with opportunities and challenges of technological progress.

Having a complete industrial chain can effectively reduce costs and improve efficiency, so that enterprises have more right to speak and form obvious advantage in today’s fierce competition. Therefore, completed machine enterprises are all holding important parts supply, or independent research and development, or mergers and acquisitions, such as motor, control panels and other accessories. As the draining pump enterprise for washing machine also face erosion coming from completed machine enterprises. Anyway, drum washing machine industry, as the important downstream draining pump industry, its development is still good. Global washing machine industry is developing steadily, at the same time, the drum washing machines market share in the Afro-Asian and Latin regions is increasing gradually. Because the drum washing machines’ efficient energy-saving, low wear characteristics, more and more Chinese and Southeast Asian consumers are bound up in drum washing machine, which is an important stimulant undoubtedly for the current global relatively insipid washing machine market, and also provides the washing machine draining pump enterprises more vast space.

Washing machine draining pump

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