Made in Macao

Candles Made in Macao Generate Enormous Overseas
Business Opportunities

Higher living standards have given rise to demand for certain new products, which can add fun to daily life, such as essential oils, health drinks and household ornaments. In addition to new products, some traditional products like candles are back in vogue. Candles may look insignificant but they have the knack of turning boring and drab days into romantic or happy occasions.

Set up in 1980, Macao Candles Company Limited is nowadays the only candle manufacturer in Macao. The factory started out producing artistic candles (differently shaped little wax ornaments, such as animals or plants). It began to produce table candles in the 1990s to cater for bigger market segments. Its products are now successfully exported to the United States, the Netherlands, the United Kingdom, and other European countries. The United States has gradually grown into its largest overseas market.

Small Candles, Big Market

The Macao Candles Company Limited only had one candle manufacturing plant when it was set up in the 1980s. It now has a plant measuring 150,000 square metres in Mainland China, which produces annually 20,000 metric tonnes of candles. Mr. Wong Wai Fu, Managing Director of the Macao Candles Company Limited, told Macao Image he thought the growth of the candle-making industry very much depended on peoples living standard. Candles are no longer used only in religious ceremonies or for illumination, so the Macao Candles Company Limited decided to focus on products like table candles that can add fun to peoples lives, as a way to increase market share, Mr. Wong said.

Different types of candles can brighten the atmosphere at different festivals and occasions, like candle-lit dinners and candlelight on Christmas Eve. Candles have become an indispensable tool in making life more colourful. Although candles seem to look the same all the time as they are always made of wax and candlewick, manufacturers are always working on developing new products to achieve higher added-value and meet the markets needs. For example, some candles contain essential oils and different shaped candles have become effective household ornaments.

Mr. Wong said there existed a huge demand for candles in foreign countries. In order to meet large overseas orders and to guarantee product quality, the Macao Candles Company Limited invested MOP 12 million in purchasing advanced automatic manufacturing equipment from Germany in 1998. The daily output of the machine fills up two 20/40 foot containers.

The Macao Candles Company Limited now supplies different products for a listed US company, CANDLELITE. There are more than 3,000 candle producers in the US alone, so the competition is rather fierce. So what enables Macao Candles Company Limited to compete? Mr. Wong says that labour costs in the US are much higher than in Macao, so American producers are more competitive only when they employ fewer people. In order to differentiate itself from its competitors, the Macao Candles Company Limited is focused on manufacturing products that are not produced locally in the US.

Fierce Competition

Mainland China and Thailand, where the candle-manufacturing industry has recently been developing very fast, are Macaos biggest competitors. Nevertheless, Mr. Wong believes that Macaos candle-manufacturing industry has the following advantages: Firstly, candles made in Macao are of top quality. This can be seen in made-in-Macao candles that are smokeless and drip-free. At the same time, those competitors with a large and cheap labour force are more focused on producing low-end candles. So by producing good quality candles Macao has a competitive edge. Secondly, the United States started to impose anti-dumping duty on candles from Mainland China in 1986. Macao still enjoys zero-tariffs, which makes candles produced in Macao more competitive in the international markets.

Producers from Taiwan have introduced corporate management expertise and experience as well as the latest manufacturing technology to Thailand. Nevertheless, the candle-manufacturing industry there has yet to become mature.

Mr. Wong believes that as long as Macaos candle industry can keep abreast with times, it can gain a foothold in the market even if faced with competition from the US, the Mainland and Thailand.

As for CEPA, a much talked-about subject, Mr. Wong believes that products like table candles will find their markets mainly in areas with high living standards and strong purchasing power. Mainland China, except for a small number of big cities like Shanghai and Beijing where the purchasing power is strong, has on the whole not yet reached a high level of purchasing ability. As a result, Macaos candle industry will not immediately benefit from CEPA, and Mr. Wong sees bigger potential in the overseas markets.

Mr. Wong said, It might seem simple to produce a candle. But it is not. For example, his company imports more than 100 types of candlewick from Germany. Different shapes and colours can make endless combinations and hence lead to the production of a kaleidoscope of candles.

Contact
Macao Candles Company Limited
Add: Rua dos Pescadores, Edf. Industrial Nam Fong, No. 82-86, 4. andar B, Macau
Tel: (853)337971, 337970
Fax: (853) 336061
Email: info@macaocandles.com
Website: www.bestware.com.mo/macaoCandles/main.htm