Little Candles Huge Market Bonanza

For many people, candles only come in handy when they are out of power. But don't underestimate the candle. It can have a big market. It is understood that there are more than 12 billion U.S. dollars worth of candle products in the world each year. Only countries like Europe and the United States account for more than 75% of the total, while candlesticks and other decorative accessories derived from candles account for about 37% of the market. Insiders pointed out that due to cultural, religious and living needs and other reasons, the global consumer demand for candle products will exist for a long time and continue to improve.

China is the world’s largest candle-producing country. Over the years, it has been recognized by all countries in the world for its high-quality and inexpensive candle products. In recent years, with the rapid growth of Chinese candle exports, the share of domestic candles in the international market has gradually increased. “In the past 10 years, the development of the candle industry has shifted from the traditional handicraft workshops of thousands of years to the production of modern industrial industries. It has evolved from the single lighting candle of the past to the craft candles of today. A large part of the candle manufacturing industry is Product development, production technology, product quality, delivery service, marketing and other aspects have reached the international level." Ankerkuan, secretary general of the Chinese Candle Association, said.

It is understood that the Chinese candle industry is an emerging industry. There are currently more than 1,500 production companies, employing more than 100,000 people, forming a certain size of about 400, mostly labor-intensive industries. The candle industry has a greater influence in foreign trade and light industry. "Candles are paraffin wax deep processing products, solve the problem of exporting a large number of paraffin wax raw materials, while increasing the added value of the products, the development of the candle industry, has also led to the vigorous development of the packaging industry related to light industrial products, glass and ceramics and other processing industries. "Anke wide said.

As the leader of the Chinese candle industry, Qingdao King Group has established itself as the world's largest candlelight product manufacturer in the production and sales of candles, relying on the concept of continuous innovation and the belief in building its own brand in China. It is understood that 95% of the company's candles and related products exported to Europe and the United States, and for many years occupy Wal-Mart and other hypermarkets in Europe and the United States top supplier status. “We cannot use technological means to innovate, we cannot have a core part of independent intellectual property rights and we cannot have a brand of 100 years.” Chen Sobin, president of Qingdao Jinwang Group, often uses this phrase to encourage employees. The new type of polymer matrix composite wax product and material independently developed by the company is a new generation of environmentally-friendly candlelight products that combines a fine polymer matrix with organic compounds such as plant wax, and has a promising market prospect.

It is understood that in 2004 China's candles exported to the United States reached 139 million U.S. dollars, and 6 percent of the country’s total exports of candles. Because Chinese candles are beautifully produced and inexpensive, they are extremely popular in the U.S. market. Whether they are shopping malls such as Wal-Mart or “one dollar” convenience stores, even the most prosperous Fifth Avenue in New York has Chinese candles. Become America's largest candle exporter. However, the fact that can not be ignored is that, although there are currently more than 1,500 companies engaged in candle-related production in China, 80% to 90% of them are all OEMs, and they are small in scale, have no own design and patents, and their profits are very low. . The development of enterprises in the industry is still unbalanced, and some companies are still relatively backward. Moreover, the main raw material of candles is paraffin wax, which is made from petroleum processing. At present, only China's petroleum is rich in paraffin. Candles made by domestic companies in the United States use paraffin wax and are mainly imported from China. Due to China's export tax rebate policy, the price of Chinese paraffin used by US companies is lower than the Chinese paraffin purchased by Chinese companies.

In recent years, the impact of factors such as the appreciation of the ***, rising raw material prices, anti-dumping duties of 108.3% imposed by the United States, anti-dumping duties levied by the European Union by 37.1%, various trade barriers and the global financial crisis have further hampered the development of candle manufacturers. The industry's living environment is extremely harsh. Some candle manufacturers have stopped production or closed down on the verge of bankruptcy. “Traditional candle products have no market competitiveness. It is the only way to open up and innovate, improve the management level of enterprises, and adjust the product structure to adapt to the new situation,” said Anke Kuan.

Therefore, industry experts suggest that candle manufacturers can use their own raw materials and other resources, in addition to the production of traditional candles, but also from the candle shape, product structure and other aspects of appropriate innovation. It is understood that candles are an indispensable product in religious culture. Candle manufacturers in the religious industry also account for a relatively large share. However, many manufacturers who focus on the production of candles for religious purposes are relatively single and their products are more traditional. It is not new enough, so the markets and buyers targeted by the export will be relatively limited. According to experts, candle products have an indispensable role in the religious rituals and home decoration in the United States and Europe in the world candle market. Moreover, due to the influence of economic development, it leads the consumer trend of the world's candle products and becomes the region with the strongest candle spending power. According to the calculation data provided by the American Candle Association, the current global sales of candles and related craft products are more than US$10 billion, of which European and American markets account for more than 70%. Therefore, Chinese candle manufacturers can use this as a stable target market. In addition, Chinese goods have always been famous for Togo and West African markets at a fair price. Because of the backwardness of the power industry in West Africa, the shortage of electricity is also very serious. Candles and flashlights are obviously necessities of people's daily lives, and flashlights require batteries. Therefore, candles occupy a large market in West Africa.

Exporting three candles will allow one refrigerator to be exchanged. Such expensive candles do not seem to be plausible to the Chinese. However, in Europe and America, one in every four families uses Chinese candles made by Qingdao King. The small candle is a big cause. In this industry, American companies have spent more than 100 years becoming the top in the world, and Chinese candle companies are still on the road.