Early Heatwave... Fan Factory Working Breathlessly Inside Masks

Employees of Shinil Electronics are producing fan products while wearing masks at the factory located in Cheonan, Chungnam on the 15th. Photo by Shinil Electronics

[Asia Economy Reporter Moon Hyewon] On the conveyor belt that never stops moving, fans and air circulators are being completed one by one. Due to the early arrival of the heatwave this year, the hands of the fan factory workers have become even busier. Although it is a routine task, this year the employees wearing masks look even busier as they also have to pay attention to COVID-19 prevention measures.

Shinil Electronics, the number one company in the domestic fan market share, operates three conveyor belts at its Cheonan factory in Chungnam, producing over 4,000 fans daily. Typically, the summer peak season volume is prepared from December of the previous year and production is completed by the end of June.

More than 90% of the fan volume is for domestic sales. Other products such as dehumidifiers, air purifiers, mixers, and bedding vacuum cleaners are mainly exported to 11 countries including the United States, China, Southeast Asia, and the Middle East. Although export volumes are not yet large, the company plans to pioneer overseas markets through new product development and localization strategies.

Lee Byung-ki, head of production management at Shinil Electronics, is one of the busiest people in the factory around this time. He arrives at the site at 8 a.m. to check the inspection, assembly, and packaging status for the day and ensures there are no defective products before shipment. The most important task at this time is inspection. Products about to be released are operated for about 400 to 500 hours to test for any issues. They conduct professional product testing anticipating situations such as shocks and noise that could cause inconvenience to customers. The company's belief is that minimizing the defect rate through strict processes is the only way to earn customer trust.

This year, thorough factory disinfection management is also being implemented due to COVID-19. Employees are strictly urged to comply with personal hygiene practices such as handwashing and cough etiquette, which are the most important for preventing infectious diseases. The temperature of all employees is measured daily upon arrival, and they are required to wash their hands thoroughly before work. Wearing masks is mandatory during production work. The factory maintains cleanliness and disinfection of sinks, door handles, railings, and washbasins, and regularly ventilates indoor spaces. Lee said, "Since imported parts needed for summer appliances were prepared in advance last year, production is proceeding without disruption."

With the early arrival of this summer's heatwave expected, Shinil Electronics has decided to increase its fan production target, including fans and air circulators, by 15-20% compared to last year (1.92 million units). The sales of air circulators have steadily increased, raising their share of total fan production this year by about 15% to 700,000?800,000 units compared to last year. Shinil Electronics' air circulators received a very positive response, generating 1.4 billion KRW in sales from a single day of broadcasting on GS Home Shopping on the 9th.

An air circulator is a product that distributes the cold air from an air conditioner throughout the room. When used together with an air conditioner, it enhances cooling efficiency and reduces electricity bills, leading to a steady increase in consumer purchases.

The domestic fan market size is estimated by the industry to be around 3.8 to 4.5 million units (including circulators and special fans). Shinil Electronics holds about 40% of the domestic fan market share, maintaining its position as the industry leader. At one point, the company was concerned about the emergence of high-priced foreign brands like Dyson. Since these products are priced about 4 to 5 times higher than those sold by mid-sized companies like Shinil Electronics, they are not competitive in terms of cost-effectiveness.

Although the fan industry seemed to be shrinking due to the spread of other cooling devices like air conditioners, it is growing dramatically contrary to expectations as auxiliary cooling fans such as air circulators gain popularity. Lee explained, "Ten years ago, the majority of fan products were traditional blade fans, but now the ratio between fans and air circulators is about 5 to 2. In cases where air conditioner installation is difficult due to space structure or where installing multiple air conditioners is financially burdensome, consumers tend to purchase circulators to improve cold air delivery efficiency." Unless there are variables such as prolonged heatwaves, the fan factory will switch to producing winter appliances like heaters and electric blankets starting next month.