상품DB/이집트 양날 면도날 시장동향(2013.3)/안전면도날(면도날의 브랭크로서 스트립상의 것을 포함한다)

[수봉]

제목

이집트 양날 면도날 시장동향(2013.3)

게시일

2015-11-04

국가

이집트

작성자

오새봄(카이로무역관)

품목

안전면도날(면도날의 브랭크로서 스트립상의 것을 포함한다)

품목코드

821220

작성일자: 2013.3.20

작성자: 카이로 무역관 김효근(nabeel@kotra.or.kr), Pakinam Hassan(pakinam.kotra@gramail.com)

1. Export and Import Trend

 ○ According to the Central Agency for Public Mobilization and Statistics(CAPMAS), which is based onPresidential Decree 2915 for year 1964, is the official source for provision of data, statistics, and reports. The following table demonstrates the current status of imports and exports of double edge blades:

HS Code	8212201000
Item	Finished safety razor blades

Rank	Country	Import Value ($)			Growth Rate (%)	Import Share (%)
		2008	2009	2010	2009~2010	2010
1	Germany	344,065	1,101,105	1,684,295	53	48.5
2	China	239,908	768,435	824,589	7	23.7
3	Egypt	─	─	723,930	─	20.8
4	Italy	─	44,418	106,245	139	3.1
5	Poland	110,288	315,366	61,085	-81	1.8
6	Turkey	─	─	30,464	─	0.9
7	India	309,336	56,043	23,431	-58	0.7
8	Spain	25,020	─	10,881	─	0.3
9	Syria	─	─	8,951	─	0.3
Total Imports		1,509,682	2,720,141	3,473,871	28

Year 2010

HS Code	8212202000
Item	Unfinished safety razor blades

Rank	Country	Import Value ($)			Growth Rate (%)	Import Share (%)
		2008	2009	2010	2009~2010	2010
1	Egypt	─	─	184,328	─	100
2	China	250	9,701	─	─	─
3	United Arab Emirates	─	162	─	─	─
Total Imports		250	9,863	184,328	1769

Year 2010

HS Code	8212203000
Item	Razors blanks (including unfinished razors blanks in strips)

Rank	Country	Import Value ($)			Growth Rate (%)	Import Share (%)
		2007	2008	2009	2008~2009	2010
1	Pakistan	4,944	7,080	4,982	-30	62
2	China	─	6,947	1,581	-77	20
3	Germany	─	─	1,238	─	15
4	Rep. of Czech	─	─	266	─	3
Total Imports		108,059	14,027	8,067	-42

Note: Egypt did not import razors blanks (including unfinished razors blanks in strips) in year 2010.

Year 2009

HS Code	8212201000
Item	Finished safety razor blades

Rank	Country	Export Value ($)			Growth Rate (%)	Export Share (%)
		2008	2009	2010	2009~2010	2010
1	Brazil	172,964	1,488,037	1,771,193	19	18
2	Sudan Republic	─	232,427	1,497,507	544	15
3	North Vietnam	─	1,196,951	1,080,920	-10	11
4	Afghanistan	─	1,306,228	906,748	-31	9
5	Kingdom Of Jordan	1,263,875	1,868,074	902,412	-52	9
6	United Arab Emirates	511,483	680,579	807,181	19	8
7	Pakistan	─	367,380	553,937	51	6
8	Kingdom of Saudi Arabia	219,130	35,658	360,975	912	4
9	Algeria	─	1,726,439	314,812	-82	3
10	Brazil	─	─	311,925	─	3
Total Exports		2,965,722	10,710,290	9,762,518	-9

Year 2010

HS Code	8212202000
Item	Unfinished safety razor blades

Rank	Country	Export Value ($)	Export Share (%)
		2008	2010
1	Morocco	67,707	32
2	Japan	56,585	27
3	Djibouti	52,001	25
4	Kenya	30,404	14
5	U.S.A.	4,139	2
Total Exports		210,836	100

Note: Egypt did not export unfinished safety razor blades in year 2007, 2009, and 2010.

Year 2008

HS Code	8212203000
Item	Razors blanks (including unfinished razors blanks in strips)

Rank	Country	Export Value ($)	Export Share (%)
		2010	2010
1	Kingdom of Saudi-Arabia	4,220	100
Total Exports		4,220	100

Note: Egypt did not export razors blanks (including unfinished razors blanks in strips) in year 2007, 2008, and 2009.

Year 2010

2. Import Tariff

 ○ Reference to the Egyptian ‘Customs Tariff Book’, the customs duty rates imposed on the imported HS codes 821220 are demonstrated below:

Import Tariff Rates

HS Code	Description	Import Duty
8212201000	Finished safety razor blades	30%
8212202000	Unfinished safety razor blades	20%
8212203000	Razors blanks (including unfinished razors blanks in strips)	10%

3. Competition Trend

 ○ Generally and in terms of domestic companies, Lord, which focuses on blades and razors, is a significant player in the local and regional blades, razors, and shaving machines market. It is headquartered in Alexandria and it also has offices in Port Said besides the ones located in Alexandria.

     On the other hand, some Egyptian importers may import blades and razors from foreign countries. Some of these foreign countries include Germany, China, Italy, Poland, Turkey, India, Spain, Syria, United Arab Emirates, Pakistan, and Republic of Czech. However, the market of blades and razors are dominated by the foreign countries. The Egyptian consumers are not aware about any of the foreign brands, consequently the Egyptian market of imported blades and razors are not classified by brands or in other terms are not ‘brand oriented’.

     Hence, the market of double edge blades, here in Egypt, is considered to be a ‘pure monopoly’; there is a specific enterprise which is the only supplier of blades or razors called ‘Lord’ and it is well recognized among Egyptian consumers. Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. A monopoly is a market structure in which a single supplier (Lord) produces and sells a given product (blades and razors).

     Since Lord is a single producer and seller of blades and razors and there are not any close substitutes for the product, the market structure is that of a ‘pure monopoly’ as previously mentioned. Lord is the only seller of blades and razors that produces all the output, therefore the whole market is being served by a single company, and for practical purposes, the company is the same as the industry.

4. Retail Price and Distribution Structure

□ Retail Price:

 ○ Over the past couple of years, the prices of blades and razors are considered to be stable in Egypt. The prices of blades and razors differ and vary according to various attributes or variables such as the purpose, size, and quantity bought.

 ○ The average price of blades and razors, especially those which are supplied by Lord, is approximately 50 piastres per double edge blade. The blades and razors, here in Egypt, are sold separately and it is also sold in packs by which each pack contains 10 double edge blades. The pack of 10 double edge blades is sold for 4 EGP.

Brand	Country of Origin	Size / Quantity	Price
Lord	Egypt	1 Double Edge Blade	50 piastres (EGP)
		10 Double Edge Blades	4 EGP

□ Distribution Structure:

 ○ The main channel of distribution regarding double edge blades may include several options or in other words possible channels of distribution. The distribution structure of the local manufacturer ‘Lord’ will differ from that of the importers. The local manufacturer or importers may use different strategies in the process of making the double edge blades available for use or consumption by consumers.

 ○ The local manufacturer ‘Lord’ is using the ‘level one channel’ which has one intermediary; this flow is typically from manufacturer to retailer to consumer. This is the widely and commonly used distribution structure by which Lord is applying.

     On the other hand, importers apply a different strategy concerning their distribution structure. The foreign manufacturers export their double edge blades to the Egyptian importers or agents and then the Egyptian importers or agents may include distributors or even exclude distributors from their distribution structures. In case Egyptian importers will include distributors from their distribution structure, the distributors will be responsible for delivering the double edge blades to the end users. In case Egyptian importers will exclude distributors from their distribution structure, the importers or agents will be responsible for delivering the double edge blades to the end users themselves.

5. Usage of Products

 ○ The basic and commonly known usage for the double edge blades is ‘shaving’; as many barbers use shaving brushes, shaving soaps/creams, and double edged safety razors. The majority of the people prefer finds traditional wet shaving is the promise of healthier skin to avoid ingrown hairs, redness, and bumps. Moreover, they believe that wet shaving using double edged safety razors is better for the economical benefits.

     Also, it is more environmental friendly to use double edged safety razors because the only waste is the lather you wash down the drain and a simple metal blade, which is easily recycled. Furthermore, some barbers believe that the double edged safety razors are more effective and efficient than the electric shavers, because the double edged safety razors reach some facial angles that electric shavers may not be able to reach.

     Besides the basic and commonly known usage for the double edge blades which is shaving, some tailors also use the double edge blades for other purposes. Some tailors use the double edged blades to cut the threads or stitches while they are sewing and tailoring clothes. These tailors use the double edged blades instead of the scissors as a substitution.

6. Production Trend

 ○ Lord is the only producer and supplier of double edged blades and by examining Lord’s production trend, Lord is always keen about the customers’ demands as they are the most important. Lord believes that knowing the customers’ minds and demands is considered to be very important in order to be able to satisfy the customers’ demands. Lord is always emphasizing on understanding its customers’ desires, through forever analyzing the buyer-seller relationship, the matter that leads to regularly deliver products and services that fully meets consumer needs and expectations.

 ○ Lord is aiming to maintain the achieved customers’ loyalty, right through increasing the likelihood that current customers will buy its products or brands for their next and future purchase occasions. This is sustained by means of conducting a true "dialogue" with customers by tracking interaction over time, identifying changes in purchasing, and allowing the company to anticipate future changes.

 ○ Concerning the production capacity of Lord, in year 1930 Lord established the first blades factory in the Middle East with an annual production capacity of 72 million blades. The used technology by that time delivered carbon steel blades. In year 1978, Wilkinson Sword acquired the factory forming a joint venture with Alexandria Metal Products under the name of Wilkinson Sword Middle East and its capacity increased to 325 million carbon and stainless steel blades per year. By year 1981, Al-Soliman Group acquired 51% of the factory’s shares. Al-Soliman Group had more than 63 years of experience by that time and it is considered to be one of the experts in the field of trade and distribution of the fast moving consumer goods in Egypt. The factory’s name changed to be Alexandria Cutting Tools Company. By controlling the company management by Al-Soliman Group, Lord started a new era for the blades and razors industry in the Middle East by using state of the art quality management policies. By year 1984, the production capacity increased to 485 million carbon and stainless steel blades annually.

     In year 1986, Lord stopped producing the carbon blades and focused on achieving the highest quality level with the stainless steel blade manufacturing. In year 1990, Lord started to produce the disposable twin blade at the Lord Precession Industries Factory. Two years later and specifically in year 1992, the production capacity expanded to reach 1 billion blades annually. Moreover, Lord diversified its business scope to include wet shaving disposable razors and systems produced by Lord International Company.

     As previously mentioned, Lord succeeded to acquire the Bureau Veritas ISO 9001 certification in year 1996 and it also succeeded to acquire the Bureau Veritas ISO 14001 certification in year 2002. Finally, the latest expansions took place in year 2003 and Lord succeeded to expand its production capacity to reach 2.5 billion blades annually.

7. Market Outlook

 ○ As previously mentioned, Lord is the only producer and supplier of double edged blades in the Egyptian market. Lord is not only producing under the umbrella of its registered brands (i.e. Lord, ASCO, Big BEN, Triple, etc…), but it also satisfies on a custom-made basis the demand of a substantial figure of the superlative retailers in Switzerland, United Kingdom, Germany, Brazil, and other countries to possess their own ground-breaking privately labeled products, using the paramount approachable raw materials, essentially the stainless steel obtained from its supreme manufacturers in United Kingdom, Sweden, Japan, and other countries as well.

     In 1930, the first blades mechanized factory in the Middle East region was established in Alexandria, under the name of "Alexandria Metal Products Company".  In 1978 a joint-venture was formed with the former Wilkinson Sword U.K., the matter that boosted the improvement and the modernization of the manufacturing systems, procedures and quality controls. In 1981 and due to the Wilkinson's restructure for its global functional areas of existence, the company was fully sold, which resulted in changing the company's name to "Lord Precision Industries". Lord is currently considered as one of the six major operating market players, due to the proficiency of its management, along with the perfectionism of more than 2200 employees, through conducting on-going innovations strategies, which endures the key factors of maintaining such global success. LORD is continuously investing in quality researches and development, proven by the Bureau Veritas ISO 9001, and ISO 14001 certifications.

 ○ Lord is cordially upholding a wide flexible spectrum of products for both sex including traditional double edge, single, twin, and triple blades systems, cartridges and disposables, and shaving focused cosmetics. Lord possesses a marketing acumen that along with the strictly adhered quality assurance processes can be considered as the driving force behind the international recognition for its full range of products.  Lord is producing under its registered brands, as well as fulfilling the need of a considerable number of the world class retailers on a tailor-made basis, using the best raw materials, acquired from A-class manufacturers. Lord is exporting its range of products to more than 75 countries, due to the interaction of the previous factors over 75 years of track record, and to Egypt's geographical location at the crossroads of the African and the Asian continents. Lord furnishes its products at competitive rates, along with its outstanding expertise and responsiveness without trading off between the price and the quality, and in parallel to sustaining the delivery punctuality.

 ○ The market outlook of double edged blades will be described by looking to the bigger picture which is the research and development that took place in regards of the double edged blades. The research and development, conducted by the local manufacturer Lord, analyzed the importance of the coating system, image analysis and machine vision research, metallurgy system, and finally the surface roughness texture system.

  - The coating system is interested in blades cleaning from any impurities on edge of blades, adhesion of lubricant coating by the measurement of adhesion of lubricant coating on edge of blades by using special friction test in certain substrate by using powerful hardware and software programs to analyze of resultant data which indicate:

   · Eval‎uation of adhesion of lubricant coating on edge of blades

   · Life of lubricant coating after many shave

   · Research in chromium plating to enhance and improve the corrosion resistance of the blade edges and aids in the adhesion of lubricant coating to the steel substrate

   · Research in coating applied materials is to enhance blades shave ability.

 ○ The image analysis and machine vision research is about capturing and grabbing life image using high resolution camera on the production line using a powerful software, where a quality control and measuring dimensions, etc… are to be done on-line during manufacturing process, this system decided very fast on the measurements and the decision made very fast to correct for the manufacturing parameters so the best quality is attained.

 ○ The metallurgy system includes microstructure investigation in metallurgical lab, using powerful hardware and software programs, for image analysis system to examine received steel and after heat treatment of steel. It is also important to conduct an investigation on different type of etchant to reveal the microstructure and carbide of steel before and after heat treatment.

 ○ Finally, the surface roughness texture system is responsible for the research on surface roughness texture to improve the performance of production processes and surface finish of blades using a powerful surface texture instruments for measurements. The total amount of exports ($) are the total exports' value to all countries, not the top ten countries only.