February 13, 2008 -- Market analysts are expecting a wave of price hikes of home electrical appliances in China after the Chinese lunar New Year holidays (Feb. 6-12) due mainly to greater cost pressures.

It is learned that the general manufacturing cost of home electrical appliances manufacturers in China has been rising owing to hikes of steel, nonferrous metals and other raw material prices, crude oil and labor cost.

A recent report by China Securities Journal said foreign brand Siemens has already adjusted up its product prices at the beginning of 2008, with the price hike so far reaching 5-10 per cent.

The report quoted a sales person of Gome, a leading electrical appliance retailer in China, as saying that a new round of price hikes of Siemens products may take place after Feb. 13.

Some other foreign brands have raised their prices of washing machines, refrigerators and color TV sets.

Leading domestic home electrical appliance makers still resort to indirect ways to lessen cost pressures, such as reducing discounts and other preferential treatments.

But market observers estimate that they may raise their product prices after the Chinese New Year holiday, a traditional peak season for selling home electrical appliances.

Source: Asia Pulse