상품DB//이집트 가스오븐레인지 시장동향(2014.8)//가스연료용의 것 또는 가스와 기타 연료 겸용의 것

[trader]

제목	이집트 가스오븐레인지 시장동향(2014.8)
게시일	2016-03-23	국가	이집트	작성자	김주선(카이로무역관)
품목	가스연료용의 것 또는 가스와 기타 연료 겸용의 것
품목코드	732111
작성일자: 2014.8.7 작성자: 카이로 무역관 Mr. Roh Jungmin(rho.kotra@gmail.com), Ms Pakinam Hassan(pakinam.kotra@gmail.com) 1. Regulations and certifications □ Import and certification  ○ Local inspections or certifications for the import of products   - Process for inspection and certification  ○ In order to conduct an inspection for a new industrial consignment, the importer should head to the Central Directorate for Industrial and Engineering Imports which is located in the Industrial Imports Departments in all the General Organization for Export and Import Control (GOEIC) branches.  ○ Required documents:   - Application form for inspection, available at GOEIC different branches, complete and signed by the importer or his agent   - Invoice   - Certificate of origin   - Packing list   - Bill of lading   - Annex no. 11   - Technical data for some products such as filters, alloys, absorbers, etc.   - Power of attorney “if the person concerned is not available”.   - Note: The above mentioned documents shall be submitted in the original and a copy at the time of application.               The importer shall not receive the final results until all documents are complete. Any missing document shall affect the visual inspection process, the committee shall not proceed with the inspection unless all missing documents are complete.  ○ Service-Providing Measures:   - Submit the required documents attached to the application   - Technical review of documents and fee assessment   - Review financial documents “invoice, annex no. 11” and audit inspection fees   - Collect fees   - Register in the entry book and indicate the registration number on the inspection application form   - Form a committee for visual inspection   - Perform the visual inspection and sample-taking   - Sample-codification   - Sample analysis   - Issue of conformity certificate  ○ Time Span Required for the Completion of Service:   - Within the specific testing period cited in the standards or governing regulations concerning items respectively in accordance with Article 10 of Ministerial Decree no. 515/2003. Article 10 of Ministerial Decree no. 515/2003 states that banks operating in the Arab Republic of Egypt shall collect administrative charges determined by the Minister of Foreign Trade on the total value of goods and shall credit them, immediately upon collection, to the account of the Ministry of Foreign Trade at the Central Bank of Egypt.   - In cases where clearance is accorded directly by the customs, these charges shall be collected by Customs authorities on behalf of the Ministry of Foreign Trade and Industry. In all cases, the receipt indicating payment of these charges shall be regarded as among clearance-related documents   - Related regulations and standards    · Any additional or related regulations and standards are issued by the Egyptian Organization for Standardization and Quality (EOS). Concerning the household appliances operated with gas, EOS has two standards:    · 164 - 2 / 2008:    · Domestic cooking appliance burning gas fuel under 30 cm water of gas fuel 20 cm water part 2: appliances having forced convection oven and / or grills- safety    · 164 - 4 / 2008:    · Domestic cooking appliances burning gas fuel under 30 cm water pressure or natural gas fuel under 20 cm water pressure part 4: rational use of energy appliances having forced convection oven and/or grills.    · The reference for these standards is the European standards; the European standard ‘EN 30-1-2/1999’ is a reference for standard number 164 - 2 / 2008 whereas the European standard ‘EN 30-2-2/1998’ is a reference for standard number 164 - 4 / 2008. These standards are sold and they can be bought from EOS or GOEIC’s premises. Standard number 164 - 2 / 2008 is sold for 310 Egyptian pounds (EGP) and standard number 164 - 4 / 2008 is sold for 240 EGP.   - Conditions for exception    · According to the Egyptian Import and Export Law, there are no specific conditions for exception concerning   - Related organizations    · The related organizations are the General Organization for Export and Import Control (GOEIC) and the Egyptian Organization for Standardization and Quality (EOS).    · The General Organization for Export and Import Control is an executive body affiliated to Ministry of Trade and Industry; and works as a service provider. It aims at customer protection and maintaining the good image of Egypt worldwide through inspecting the quality of imports and exports; using the most recent techniques and methods; in addition to preparing exports and imports statistics and reports.    · The Egyptian Organization for Standardization and Quality (EOS) is the competent and official body responsible for standardization activities, quality and industrial metrology aiming at increasing the competitiveness of the Egyptian products in the international and regional markets along with consumer's and environment protection.  ○ Import and distribution process  ○ Import Process   - Importers should possess the following documents:    · An Import Card which is issued by the General Authority for Import/Export Quality Control at the Ministry of Industry    · Taxation Card, which is obtained from the Taxation Authority or any of its offices    · Three forms of Annex (11) of the import/export executive regulations issued by Ministerial Decree 275/91. Annex (11), the application to finance imports with convertible currencies, includes information on the type, quantity, price, and country of origin of the imported commodities. The importer retains one copy which he/she submits to Customs to release the shipment, the second copy is submitted to the Foreign Trade Department at the Ministry of Economy and Foreign Trade and the third copy is kept with the bank to follow-up on payment. The pro-forma invoice or final invoice should be stamped by the bank. (Note: Investment Law 230 companies must obtain approval from the General Authority for Investment to import material necessary for their operation.)   - The following documents should be presented to Customs to release imports:    · Bill of lading. The Bill of Lading must contain the terms "Consignee" and “Notify Party." The information should correspond with that shown on the invoices and packages    · Original invoice. There is no prescribed format to the commercial invoice. Should be issued in a minimum of three copies (additional copies may be requested by importer. Invoices must give all details normally provided and include full description of the goods, all price details, including freight, packing and other charges and discounts, net and gross weights, etc. Should state that goods are of U.S. origin and that they are manufactured in the United States. If products contain any foreign components, the country of origin and percentage must be indicated. The full name and address(es) of the U.S. manufacturer(s) should also be given    · Packing lists    · Certificate of origin. Should be issued in a minimum of three copies (additional copies may be requested by importer). The usual data should be given on origin certificates, including weights in Kilograms. Should state that goods being shipped are of U.S. origin and that they are manufactured in the United States. If products contain any foreign components, the country or origin and percentage must be indicated. The full name and address(es) of the U.S. manufacturer(s) must be included. (For natural products, the country of origin is that where the goods are grown or extracted; for manufactured products, where the products receive the form in which they are shipped, with the exception of repacking, resorting, or mixing.)    · Content analysis of the commodity, if required    · Delivery order from the carrier in return for the bill of lading    · Custom procedural certificate, which is a customs form that lists information and data including source and country of origin of imports, name of importer, type of product, port of delivery, value, and quantity of the shipment.  ○ Distribution Process   - Concerning the distribution, manufacturers and importers of consumer appliances [such as ovens and other white goods] are responsible for distributing their appliances. They usually distribute ovens and other white goods through grocery retailers, home appliance retailers, and manufacturers’ showrooms. Some traders resort to online retailing which is attributed to the popularity and deeper penetration of the internet. However, the channel continued to account for only a small share of sales, with many consumers concerned about their financial security when shopping online. In addition, many consumers prefer to inspect consumer appliances before purchasing them in stores.  ○ Customs regulation and tariff  ○ Customs Regulation   - A statement shall be submitted in respect of all goods entering or going out of Egypt and they shall be brought before the Authorities at the nearest customs branch as may be determined by the Customs Administration. As per a decree to be issued by the Minister of Treasury at the proposal of the Director General of the Customs Administration, the Customs Administration's branches may be established and their functions determined and so also the types of goods in respect of which formalities are permitted to be completed. All goods which are not allowed to be imported or exported shall be regarded as being prohibited. If the import or export of goods is subject to restriction by any authority whatsoever, they shall not be allowed to be brought in or sent out unless they are fulfilling the required conditions. The stoves, heaters, house cookers and parts and grates thereof, falling under the HS code 7321, are subject to imports quality control and their inspection fees are one piaster for each kilogram of the consignment.  ○ Tariff   - Reference to the Egyptian Customs Tariff, the tariff rate of importing gas oven range is 30%. □ Installation of gas equipments  ○ Laws and regulations  ○ The manufacturers or the authorized commercial agents are the ones responsible for the installation of gas equipments. They take important cautions when installing the gas equipments. They carry and install the gas oven ranges with care since it contains glass parts. They make sure that the following items are present:   - Dripping pan   - Oven grid shelf   - 2 top grids with the 4 and 6 burner cooker, while 3 with the 5 burner cooker   - 4 adjustable legs   - The rotisserie parts:    · 2 supports    · 1 spit  ○ They make sure that the gas oven ranges are well placed and positioned for proper operation of the cooker as they must be placed in a well ventilated place. They do not use any type of power supply (voltage, frequency) other than that specified in the specification label at the back of the gas oven range. Since Egypt is using 220 volt, if the gas oven ranges are operating through 220 volts, the technicians change the connections of the igniter and motor terminals to those of the desired power supply voltage and they make sure that the power cord is unplugged when changing the power supply specifications.  ○ Regulations regarding the installation of emission   - The emission differs according to the type of gas used whether the type of gas used is liquid petroleum gas or butane gas and there are no specific regulations regarding the installation of emission stated by the Egyptian Environmental Affairs Agency or even the Egyptian Ministry of State Environment Affairs.   - Users are just warned not to use any kinds of gas other than that specified in the specification label attached to the back of any gas oven range. The manufacturers or the authorized commercial agents’ technicians connect the gas oven ranges to the gas supply (bottle/cylinder or pipe) according to the standards after adjusting the cooker for the type of gas supply.  ○ Penalties for violation   - According to the Egyptian Consumer Protection Law, each supplier shall provide the consumer with valid information on the nature and properties of the product, and shall avoid anything that leads to creating an unreal or misleading impression with the consumer, or to his fall in confusion or mistake. The announcer shall be relieved from the responsibility once the information comprised in the advertisement is technical and it is difficult for the usual announcer to ascertain its validity and once it has been provided to him by the supplier. Thus, suppliers of gas oven ranges shall hand an operating instructions manual or user manual for the consumers.   - In case there is a defect while installing, the supplier, within seven days from his discovery or learning of a defect existing in the product, shall notify the Consumer Protection Agency of that defect and its potential harms. If that defect would result in a harm to the health or safety of the consumer, the supplier shall notify the Consumer Protection Agency of that defect upon discovering or learning of it, and shall announce discontinuing the production thereof or the dealing therein, along with warning the consumers against utilizing the product.   - In these cases, the supplier, upon the consumer’s request, shall replace the product, repair the defect, or return the commodity in addition to paying back its value without any additional cost. If a difference occurs in applying the two previous clauses, the matter shall be referred to the Consumer Protection Agency to issue a binding decision in this respect. In some cases and in the event of a breach, the Consumer Protection Law can suspend the suppliers' activities or seize defective products until investigations are concluded or court judgments are passed.  ○ Organization for permission or inspection   - The main regulating bodies, as previously mentioned, are the General Organization for Export and Import Control (GOEIC) and the Egyptian Organization for Standardization and Quality (EOS). In addition to GOEIC and EOS, Consumer Protection Agency is involved to protect the consumers and inspects and conducts investigation in case it receives a complaint from any consumer. Consumer Protection Agency as a governmental body, working under the Ministry of Trade and Industry, works on regulating the until now unbalanced consumer-trader relations, by monitoring trade transactions and enforcing consumer/trader binding laws and regulations, it has been decided to establish an agency to protect consumers, particularly that we are far behind many countries who have already acquired awareness and success in respect of regulating consumer-trader relations. 2. Market (demand) trend □ Local (produce/sell) trend  ○ Local market size (annual)   - Reference to the Central Agency for Public Mobilization and Statistics (CAPMAS), which based on Presidential Decree 2915 for year 1964, it is the official source for provision of data, statistics, and reports. The following table demonstrates the most recent published data about the market size and total trade of the given HS code (7321.11) for years 2010, 2011, and 2012:  ○ Popularization rate and number of products    · Reference to the white goods and appliances report prepared by the Industrial Modernization Center (IMC), working under the Egyptian Ministry of Trade and Industry, the popularization rate of gas stoves is not less than 96% approximately. The number of products and types of cooking appliances and related items include 9 products:    · Built-in large cooking appliances    · Freestanding large cooking appliances    · Built-in hobs    · Ovens    · Built-in cooker hoods    · Freestanding cooker hoods    · Cookers    · Range cookers    · Large cooking appliances  ○ Production and sales trend of gas oven range                                                                                                                                 (Unit: 1000, million EGP)         Note: Kindly note that the most recent data published by the Industrial Modernization Center (IMC) is the data demonstrated in the previous table. The Industrial Modernization Center (IMC) only conducted studies on the volume of gas oven ranges produced; unfortunately IMC did not publish data in regards of the value.         Source: Industrial Modernization Center (IMC) & Euromonitor International  ○ Production/sales trend of each manufacturer and the market share   - Manufacturers were reluctant to share their production and sales trend. The production and sales trend of each manufacturer is considered to be confidential; manufacturers do not release or publish such information because they are conservative and afraid from their competitors as well. However, Universal Group led large cooking appliances in 2013 with a share of 24.4% in volume terms. The company owes its success and growth to a very brave choice which is focusing on the only profitable ‘cookers’ category. For the moment it is not diversifying as other companies have done. The company was followed by Olympic Group, Kiriazi Group, Fresh Electric Co. and National Army Factories, which did not manage to reduce the gap, despite Universal Group seeing a decline in volume share of three percentage points in 2013.  ○ The following table demonstrates the companies’ market shares for selling gas oven ranges:      Source: Euromonitor International  ○ Market prospect   - Researches show that large cooking appliances are expected to continue to grow at a steady rate over the forecast period, increasing in volume terms by a CAGR of 2%. However, value sales are expected to fall, with a negative compound annual growth rate (CAGR) of 9% at constant 2013 prices, as the competition increases and consumers seek lower-cost products as household spending is curtailed.   - The freestanding products will be more appealing than built-in type; because the built-in types are highly priced and consume more space unlike the freestanding types which are more economical and consume less space. Since most consumers will be unwilling to spend a lot of money on built-in appliances, manufacturers believe that there is market prospect for the freestanding types.   - Finally, energy concerns are beginning to increase amongst highly educated people in Egypt. This is anticipated to have an increasing impact on these consumers’ purchasing patterns. However, despite energy issues cookers are a necessity, particularly as consumers are expected to continue to limit their spending on eating out, so the effect on sales of large cooking appliances overall will be relatively stable in the short term. □ Import trend  ○ Reference to the Central Agency for Public Mobilization and Statistics (CAPMAS), which is the official source for provision of data, statistics, and reports as previously mentioned, the most recent import trends were for year 2012.  ○ Import trend of the given HS code (7321.11)                                                                                                                                                  (Value: USD)         Source: Central Agency for Public Mobilization and Statistics (CAPMAS)  ○ Import breakdown of top 5 countries in recent 5 years        Source: Central Agency for Public Mobilization and Statistics (CAPMAS)  ○ The previous table shows that Italy’s market share was fluctuating from year 2008 to year 2012; nevertheless, it has been the most important partner country as it captured the highest market shares and preserved the first rank among the years despite the decline that took place in year 2012. Remarkably, China has been regaining higher market shares, after the decline that took place in 2009, staring from year 2011. Similar to Italy, China came in the second place and it also succeeded to preserve its rank throughout the years despite the decline that took place in year 2009, 2010, and 2012 as well. Turkey’s exports to Egypt have been fluctuating as well; however, Turkey’s export values to Egypt were ranging from 1.09 million EGP to 1.8 million EGP. Poland and Taiwan are forming small market share (1.6%) in comparison with Italy, China, and Turkey’s market share (94.11%).  ○ Major exporter/number/market share/sales trend of each item   - The Central Agency for Public Mobilization and Statistics (CAPMAS) finds it very difficult to keep records of the major exporters, number, market shares, and sales trend of the gas oven ranges or any other item. Thus, such information is unfortunately not available.  ○ Import prospect   - The demand for certain consumer goods, such as white goods, has been underpinned by strong population growth as well as the expansion in tourism over the past decade. However, the range and sophistication of goods offered by local manufacturers is still well below that of the developed countries, and mistrust of the quality of locally made goods persists. The appetite for foreign-made goods is stimulated by the expansion of the internet and satellite television, particularly among the young (55% of the population is under the age of 24). □ Export trend  ○ Reference to the Central Agency for Public Mobilization and Statistics (CAPMAS), which is the official source for provision of data, statistics, and reports as previously mentioned, the most recent export trends were for year 2012.  ○ Export trend of the given HS code (7321.11)                                                                   (Value: USD)       Source: Central Agency for Public Mobilization and Statistics (CAPMAS)  ○ Export breakdown of top 5 countries in recent 5 years       Source: Central Agency for Public Mobilization and Statistics (CAPMAS)  ○ The previous table shows that Saudi Arabia has been the most important partner country as it captured the highest market shares and starting from the year 2009 Saudi Arabia preserved the first rank among the years. Saudi Arabia has been importing from Egypt with values ranging from 26 to 32 million USD approximately. Notably, Algeria’s imports from Egypt have been increasing annually since 2008. The growth rate was impressively boosted from year 2008 to 2009 and Egypt succeeded to dramatically increase its exports to Algeria from the figure $742,823 in year to 2008 to $13,555,228 in year 2009 and since then, the growth rate is relatively constant. Similar to Algeria, Iraq’s imports from Egypt has been increasing annually since 2008. Recently, Egypt succeeded to dramatically increase its exports to Iraq from the figure $9,953,249 in year to 2011 to $16,601,144 in year 2012. Libya and Jordan are forming small market share (12.51%) in comparison with Saudi Arabia, Algeria, and Iraq’s market share (68.98%).  ○ Export prospect   - Reference to the white goods and appliances report prepared by the Industrial Modernization Center (IMC), Egypt has a large white goods manufacturing sector, which ranks 13th in the world, ahead of countries such as: Czech Republic, Hungary, India, Indonesia, Iran, Malaysia, Poland, South Africa, Spain, and Russia. Egypt has a particular production strength in cookers/ovens being ranked 4th in the world.Egypt has strength in its white goods production, as explained, which will boost its export performance. The Egyptian exports’ performance has been improving throughout the years and as shown in the export trend table, the annual exports have been regularly increasing every year.   - There are 55 countries active in receiving Egyptian exports of gas oven ranges during the complete period of 2009 to 2012. The leading importing countries, of gas oven ranges from Egypt, include the following: Saudi Arabia, Algeria, Iraq, and Libya. The Egyptian exports are expected to grow over the coming years to the leading importing countries Saudi Arabia, Algeria, Iraq, and Libya due to the projected production capacity expansions. □ Competitive trend  ○ Retail price, quality, design, material, brand awareness of 5 major models including local products               Source: Euromonitor International  ○ Universal  ○ Kiriazi  ○ Fresh  ○ Atlas  ○ Zanussi-Electrolux  ○ Competitive trend and factors of Korean products   - Reference to the import trend of gas oven ranges, it was found that Egypt does not manly import from South Korea. Thus, there is no local presence of a competitive South Korean brand in the field of gas oven ranges. Consumer appliances, in general, are a highly fragmented industry. The competitive landscape is dominated by family-owned enterprises. However, over the last decade the entrance of international players through the acquisition of local set-ups or the presence of imports started to grow.   - A number of international brands have entered Egypt in recent years, such as the two South Korean brands Samsung and LG in addition the Japanese brand Sony. Building on the remarkable success of the Samsung and LG’s consumer products in Egypt, Samsung and LG’s are expanding their businesses in Egypt in the field of mobile phones, television sets, washing machines, printers, refrigerators, air conditioners, microwaves, digital cameras, monitors, etc. □ Price trend  ○ Retail prices according to the brands and models   - As shown previously in the ‘competitive trend’, the prices range from 965 EGP to 1,765 EGP. The prices of gas oven ranges differ according to many variables such as the number of burners, safety measures, options [such as self ignitions, lighting, food warming drawers, grills, timer, ], material, dimensions, capacity, etc.  ○ Price comparison of local and imported products   - The following table shows the price comparison of local and assembled gas oven ranges because Egypt is already a manufacturer gas oven ranges and when it imports, it imports some parts to be assembled: □ Distribution channel and A/S trends  ○ Characteristics of distribution channel   - Egypt's population is extremely concentrated geographically, living largely along the Nile Valley. Around 95% of the population live on only 5% of the land, an area about one fifth of the size of the UK. The governorates that make up Greater Cairo are home to one quarter of the population. This simplifies distribution and access for retailers.   - Over the past 10 years, there has been rapid development in shopping malls, particularly located in Cairo and Alexandria. The proliferation of malls is attractive to international companies, which feel more at ease marketing their brands through formal and more familiar channels.  ○ Margin per every distribution step   - All those who are involved in the supply chain were reluctant to reveal their margins because they considered it to be confidential. However, they all agreed that manufacturers set variable margins depending on the quantity purchased; meaning that the margin will be kept at minimal levels if the buyer is buying in large quantities on the other hand the margin will be kept at maximum levels if the buyer is buying in small quantities.  ○ Factors affecting distribution   - Those who are involved in the supply chain mentioned that since Egypt’s economy fell into recession after the uprising that toppled Mubarak, and banks have been hit further by a weak financial market and an exodus of foreign investors, as a result retailing was affected. The retailing was affected by declining the purchasing power of consumers and the downturn in the number of tourists, with the Egyptian pound losing almost 7% of its value against the US dollar. Thus, retail volume sales of consumer appliances are expected to grow at a slower pace. Since consumers are predicted to remain highly price sensitive during the forecast period, manufacturers and retailers mentioned that they will be forced to use discounting offers and promotions to attract consumers, who showed an increasing willingness to shop around in search of the best value deals. Consequently, current unit prices are estimated to grow below the level of inflation over the coming period.   - All the previously mentioned factors will affect the distribution; the majority of the manufacturers will prefer to make a deal and distribute their products through well-developed shopping malls or hypermarkets which are particularly located in Cairo and Alexandria. These shopping malls or hypermarkets have the financial capabilities to cooperate with the manufacturers to conduct price discounts and promotional offers for the consumers because they sell in large quantities in comparison with home appliances’ shops and showrooms.  ○ A/S system   - All companies provide the consumers with their customer service centers’ phone numbers and hotline numbers. Companies advise consumers to call the customer service centers to issue a request of an after sale visit by the company’s representative and technician. The customer service call centers survey the consumers about the reason behind the after sale visit request. Upon the consumers’ requests, the company schedules the time of the visit and the consumers receive confirmation through a text message or a phone call.   - Furthermore, the companies’ representatives and technicians call the consumer to re-confirm‎ the availability of the consumer at the pre-scheduled time. The companies’ representatives and technicians conduct the after sales ‘services on-site at the consumers’ premises and if the gas oven ranges have to be fixed in the maintenance center, they arrange for the pick-up and delivery when finished.  ○ PL law (including duty of manufacturers)   - In Egypt, the law that is governing the manufacturers’ practices is the Egyptian Commercial Law and the Consumer Protection Law (CPL). The commercial law states that the manufacturer and/or seller can be liable on the grounds of:    · Tort, for damage caused as a result of a defective product;    · Breach of contract; or    · Product liability.  ○ Tortious liability   - The manufacturer of a defective product is liable in tort if a defective product causes any personal damage, injury or death. The statute of limitation is 3 years from the date the claimant becomes aware of the damage and, in any event, claims are barred after 15 years from the date the tortious act occurred.  ○ Contractual liability (warranty against hidden defects)   - A seller warrants that the product sold conforms to the specifications acknowledged by the seller and is responsible for, and warrants the purchaser against, any hidden or latent defects for one year from the date of delivery to the purchaser (Civil Code).  ○ The purchaser must prove:   - That the product was defective;   - That the defect could not have been discovered by the purchaser at the time of delivery and that, if the purchaser had known of such defect, he would not have purchased the product; and   - The actual damage suffered and profits lost as a direct result of the defect.  ○ Commercial Code   - The Commercial Code recognizes the notion of product liability of both manufacturer and seller. Any person is suffering from direct material or physical damage resulting from a defective product, has the right to claim damages by filing a product liability claim against the manufacturer, distributor or both severally. The statute of limitations is the same as for tortious liability.   - Concerning the consumer protection law, the consumer protection law and its executive set out obligations for manufacturers and suppliers of the products and services (as defined under the CPL) and various guarantees for consumers. In the event of a breach, the CPL can suspend the suppliers' activities or seize defective products until investigations are concluded or court judgments are passed.  ○ Legal expiry of durability, free A/S, and parts maintenance   - The legal expiry of durability, free A/S, and parts maintenance of gas oven ranges differ from one company to another. Some companies, such as Universal Group, provide their customers with 5 years of full warranty, while other companies, such as Fresh Electric Co., provide their customers with 7 years of full warranty. The warranty, free A/S, and parts maintenance valid start from the first date of installation done by the company’s service team. Each company validates the free A/S with its given warranty period. Warranty will be invalid and consumers will be deprived from the free A/S in case the details (model no., serial no., or warranty seal) has been removed, damaged, changed from warranty card of the set.   - The companies’ liability is limited to replacing, repairing or issuing credit, if any products that are opening by the customer or any unauthorized service center during the warranty period. Also companies deprive the consumers from free A/S and the warranty becomes invalid in case the gas oven range has been damaged due to misuses, transportation, accident, natural disaster, incorrect using of the electricity or any operation other than what has been mentioned in the operating manual of the set. The warranty and free A/S are not valid if gas oven ranges got used for commercial purposes or in commercial premises. Other than the mentioned conditions, all consumers are eligible to call the company’s maintenance center to ask for free A/S and part maintenance and they will be charged if the warranty period is finished or any damage was caused due to the previously mentioned reasons. □ Notes for trade  ○ Cultural difference of cooking style (comparing to Korea)   - Gas oven ranges are present in every Egyptian kitchen. Cooking is a daily routine for most Egyptians as it is a tradition to cook local dishes daily because most Egyptian households are either middle- or low-income, so they are not able to dine out regularly, which will keep the demand for large cooking appliances high especially gas oven ranges.   - Nevertheless, fast food has become very popular in Egypt, especially among children, driven by the presence of international consumer foodservice operators. The 7-14-year-old population accounts for about 30% of the total population in Egypt. These children are shaping the cooking routines of their mothers, who are moving away from traditional recipes and meals to fried chicken and burgers. However, more parents are concerned about their children’s nutrition as they drop traditional meals and cooking patterns in favor of fast food and frying. Additionally teenagers and young adults have adopted similar consumption habits, skipping traditional Egyptian meals in favor of quick and easy fast meals at home.  ○ Market characteristics   - Ongoing urbanization and a shift towards smaller one- and two-person households, such as newly married couples are helping to shape the demand for consumer appliances such as gas oven ranges. Moreover, there has been a rise in the number of working women, which improved household budgets.   - Young couples now have to live in flats with limited space due to huge rises in real estate prices, which forces them to have smaller flats with smaller kitchens. Consequently, they prefer to buy unfinished houses, which are cheaper, as they can finish them themselves over time. Such a situation obviously does not represent an advantage for built-in products, sales of which were still very small in Egypt in 2013.   - The vast majority of Egyptian households are middle-class. They consider the lifespan of the products they buy one of the most important factors, which affects their purchasing decision. The longer the life span, the better it is for the consumer. In fact, most consumers will not replace large cooking appliances until really necessary. Appliance accessories are also very important; factors such as the durability of the oven door and its hinges or heat tolerance strongly affect consumer choice.  ○ Trade customs   - The Egyptian government tends to protect the local producers in order to enhance the local production, further develop the welfare of the country by reducing the outflow of foreign currency, and limiting the importation from foreign countries. There are mandatory quality-control standards which make importing certain products into the Egyptian market difficult. Over 130 categories of imports are still subject to mandatory quality-control inspections, including foodstuffs, appliances [including gas oven ranges], electrical products, and auto parts. Although the government says that the quality control standards are applied fairly and equally to imports and domestically produced goods, in practice, imports are scrutinized more rigorously by multiple government agencies.  ○ Notes regarding the sales of gas devices   - In 2013, retail sales of large cooking appliances increased by 2% in volume terms and by 1% in current value terms, to reach 1.3 million units and 2.4 billion EGP. The long lifespan of a cooker is a key factor for consumers when making their purchasing decision and they prefer the freestanding types, as previously mentioned. Accordingly, companies capitalize on marketing their products’ high quality which happen to be durable and can be provided in various models, built-in and freestanding, to drive their sales.   - Additional notes regarding the sales of gas devices include the fact that gas oven ranges remained the most popular large cooking appliances in Egypt in 2013. In 2013, gas oven ranges accounted for a 98% share of retail volume sales of cookers. However, the presence of electric cookers is increasing. The popularity of gas cookers saw the price of the gas cylinder used at home increase to 50 EGP on the black market, up from 5 EGP fifteen years ago. □ Organization for tests, inspections, and certifications of the products □ Sort and components of gas used in the country, supply trend  ○ Sort and components                       Note: Kindly note that the Egyptian Ministry of Petroleum and Egyptian Natural Gas Holding Company (EGAS) do not publish information in regards of the component products which may be fractionated or mixed nor publish information in regards of the exact composition of liquefied petroleum gases (ethane, propane, and butanes), pentanes plus, and isopentane’s portions.                       Source: Ministry of Petroleum  ○ Supply trend  ○ Gas supply trend for regions   - The following picture illustrates the national gas grid which is being controlled by using the latest technology of SCADA system, which controls the network through the national network center NATA:   - Major discoveries in the 1990s have given natural gas increasing importance as an energy source. As of 2005, the country's reserves of natural gas are estimated at 66 trillion cubic feet (1.9×1012 m3), which are the third largest in Africa. Probable reserves have been placed at or more than 120 trillion cubic feet (3.4×1012 m3). Since the early 1990s, significant deposits of natural gas have been found in the Western Desert, in the Nile Delta and offshore from the Nile Delta. Domestic consumption of natural gas has also risen as a result of thermal power plants converting from oil to natural gas. As of 2002, Egypt's production and consumption of natural gas are each estimated at 941 billion cubic feet (26.6×109 m3). Natural gas is exported by the Arab Gas Pipeline to the Middle East and in the future potentially to Europe. When completed, it will have a total length of 1,200 kilometers (750 mi). Natural gas is exported also as the liquefied natural gas (LNG). LNG is produced at LNG plants of Egyptian LNG and SEGAS LNG companies.   - Reference to EGAS, natural gas was introduced to the Egyptian local market in 1975 when the first natural gas field ABU MADI was put on stream, since then a remarkable progress has been achieved:    · Total gas produced from all fields during the fiscal year 2012/2013 reached 2.27 TSCF (average rate 6219 million standard cubic feet per day (MMSCFD); 6192 MMSCFD companies connected to the gas grid and 27 MMSCFD companies not connected to the gas grid).    · Condensate production reached 34.86 million barrels (MMbbl)/Y (average 95.5 Mbbl/D)    · Ethane/Propane production reached 497 Mtons (average 1363 Ton/D)    · Propane production reached 708 Mtons (average 1940 Ton/D)    · LPG production reached about 1.481 MM ton (average 4057 Ton/D)   - National Gas Grid length exceeded 35 thousand ㎞ with capacity about 205 million cubic meter/day by the end of June 2013, to secure depreciation and pressure regions of Egypt.  ○ Short/mid-term plan for gas supply in the regions without supply channel   - Reference to EGAS, the short-term plan of gas supply and namely national gas grid pipelines completed during 2012/2013 are:    · Qus city supplying pipeline 3 ㎞ – 24 ㎞    · Ain Sukhna power station gas pipeline 2.5 ㎞ – 24 ㎞    · Amereya / Sidi Kirir pipeline loop 7.5 ㎞ – 24㎞   - The med-term plan of gas supply and namely national gas grid pipelines under construction during fiscal year 2013/2014 are:    · Nubareya / El Sadat gas supply pipeline 70 ㎞ – 36 ㎞    · El Sadat / Dahshur gas supply pipeline 75 ㎞ – 42 ㎞    · Idku / El Ma’ddeya gas supply pipeline 20 ㎞ – 20 ㎞    · Banha power station gas supply pipeline 3.7 ㎞ – 20 ㎞    · Belbeis -10th of Ramadan gas supply pipeline 36 ㎞ – 24 ㎞    · Establishing an alternative pipeline to supply Mansoura residential consumers 5.5 ㎞ – 6 ㎞    · Gemsa / Fenussa gas supply pipeline 34 ㎞ – 42 ㎞    · Nubareya / Meet Nama gas supply pipeline 105 ㎞ – 32 ㎞    · Gas pipeline to receive imported gas in Ain Sukhna 5.2 ㎞ – 32 ㎞    · Gas supply pipeline to feed Edfu city and sugar factory 38 ㎞ -12 ㎞    · Gas supply pipeline to feed Quena city 7.8 ㎞ – 2 ㎞ 3. Technical trend □ Application of up-to-date technology  ○ Companies compete to use up-to-do technology and eager to apply up-to-date technologies to acquire quality certificates such as the ISO 9001, CE mark for European specifications, and Saudi standard (SASO) to become one of the biggest companies with high market share locally and internationally. They are also keen to install safety device system with the gas oven ranges in order to cut off the gas supply when the flame is out. Finally, they are keen to use all materials and components from high quality suppliers who supply up-to-date technological parts to be assembled.  ○ International companies that have local presence, in Egypt, transfer their technical know-how, up-to-date production lines, and machineries to Egypt and give training to local employees in order to produce up-to-date gas oven ranges locally and supply the local market as well as export the products to neighboring countries; considering Egypt as a ‘hub’. □ Direction of technical development  ○ According to the white goods and appliances report prepared by the Industrial Modernization Center (IMC), companies nowadays are seeking to obtain technology up-dates and technical development through production license agreements. Some local firms, such as Olympic Group SAE, chose to partner with Zanussi-Electrolux and locally produce Zanussi’s gas oven ranges under the supervision and license of Zanussi- Electrolux. These strategic alliances with international firms will result in mutual benefits to fund research and development (R&D) so as to develop new technology; develop new products; and open new markets  ○ Indigenous Business Development:   - Technology, with options including: developing the existing approaches to incremental product development; enter into strategic alliances with existing global companies; establish a new white goods technology center; buy existing technology development programs and expertise   - Market development, alongside technology development, investment in market development, in particular branding, is of equal, if not more importance   - Production licenses, which may restrict the exporting activities to avoid competing with the licensor of the technology □ Application trend of energy reductive technology  ○ Companies are trying to achieve higher levels of energy efficiency and a wide diffusion of new technologies including energy reductive technology. Companies, in Egypt, are taking Europe as a business role model because achieve higher levels of energy efficiency and energy reductive technology are essential to cut energy demand, reduce dependence on energy imports, and promote smart economic growth for the benefit of the environment and society at large. Taking Siemens (Germany), as an example, it is using the ‘flexInduction technology’; each flexInduction zone uses four innovative elongated oval inductors beneath the glass, each of which can act independently to sense the presence of cookware on the hob. Only if the cookware is detected will the individual inductors work, ensuring efficient operation whether a 10cm diameter milk pan is placed in one corner, or a large griddle plate covers the whole zone. □ Provision trend of high-efficiency products  ○ Some companies believe that high-efficiency appliances and lower energy consumption are by no means mutually exclusive. These companies are always putting high-efficiency products into their consideration and they take it very seriously, to the extent that they try that the majority of their appliances have gained the official EU energy class rating of 'A', with a number exceeding this to achieve the super efficient rating of 'A+ '. Again taking Siemens, as an example, it achieves high-efficiency with flexInduction hobs by which heat only where desired. The induction heating mechanism works to make sure that no heat is wasted as it flows from burner to pot. With a 90% electric energy to heat conversion, heat transfers only take place on surface areas of contact – translating to great energy savings as well as providing safety and easy cleaning.