As a result of efforts by the EU funded, Trade Related Technical Assistant programme (TRTA II), implemented by UNIDO, 17 Pakistani electric fan models have achieved CE marking and are now in a position to export worldwide, based on the use of the EU’s “CE” conformity assessment marking. The CE marking is compulsory for many products sold in Europe, and same is the case for electric fans, a sector where TRTA has concentrated its efforts.
In order to tap into high-end markets, it is necessary to have an understanding of supply channels. For this reason, the Programme supported an 8-day study tour to China, consisting of seven personnel from the CE conformed electric fan companies, including the IE. The study tour participants visited Hong Kong Electronics Fair and Canton Fair China. These two locations are the major source of export to EU and other appliances markets around the globe.
Under the guidance of the IE, the study tour participants established an in depth understanding, in terms of exposure, on how to market fan products internationally, in order to compete in the global market. In addition to this, they learnt how to identify opportunities and potential for Electric Fan Products and appliances to high-end markets, especially the EU. They also learnt how to identify and approach new potential markets of Fans, to develop appropriate strategies to market to distribute Pakistani electric fans throughout the EU and to strive for Excellence in the Export Business.
In view of this study tour it is observed that Pakistani fan manufacturers sell domestically and export regionally. It serves the mid-end market for use in tropical climates (fans with higher air displacement). It is also observable that China is the biggest competitor in all segments as far as global sales are concerned.
As a result of this study tour, Pakistan Electric Fan Manufacturers Association (PEFMA) has developed a two stage market entry strategy for the fan sector in order to develop it into a global supplier:
- Exhibit the mid-price products (existing product mix) for the mid-end market segment in Guangzhou, Dubai and South Africa to increase market penetration. At the same time, restructure production processes, based on the workings of TRTA-II in the sector, to improve competitiveness in terms of price and quality and obtain CE marking (it is advised to do so as other non-EU countries may start requiring CE marking).
- Develop new high quality products and production processes to secure CE marking for the High-end market segment. Exhibit the newly developed high quality products for the high-end market segment in Hong Kong and in addition, also consider exhibiting in USA and South America.
Use the acquired expertise from Stage I to produce low cost new products for the low-end market segment. Exhibit the low price products for the low-end market segment in Guangzhou, Dubai, South Africa.