Cost-effective and energy-efficient Chinese home appliances have flooded the local markets, much to the relief of the inflation-hit consumers, but setting alarm bells for the local manufacturers.
Ali Ahmed, who deals in electronic appliances, said that Chinese home appliances were impacting the Pakistani market significantly due to their affordable rates.
Talking to WealthPK, he said the share of Chinese brands increased in Pakistani markets due to their compelling features, affordability, quality and durability. “Consumers are now inclined to use these appliances for their affordability and durability compared to costly high-end local appliances,” he said.
Sana Zahid, who was on Railway Road here to purchase some home appliances, told WealthPK that she replaced her old washing machine with a Chinese-made machine, which is easy to handle.
“Compared to the established brands, the prices of Chinese appliances, particularly washing machines, are low. My friends scolded me for I had trust in Chinese brands. However, now they are also following the same path and keep searching online for Chinese appliances,” she quipped.
Ms Sana said Chinese products were energy efficient, affordable and easy to use.
Zafar Ahmed, an economist, does not favour the surging import of home appliances, saying it would dent the local manufacturing industry.
However, he said the influx of Chinese appliances in the local markets had led to price competition, which was beneficial for consumers from lower strata of society.
He said instead of importing Chinese products, it would be prudent to ask the Chinese companies to set up their units in Pakistan. “Arrival of Chinese manufacturers will lead to job creation, which will ultimately improve the living standard of locals and strengthen the national economy.”
Hassan Ali, another home appliances dealer, sharing his concerns with the WealthPK said the Chinese appliances were significantly hitting local manufacturers. He said local manufacturers were struggling to provide home appliances to consumers at affordable rates due to high production costs. “Local manufacturers are finding it difficult to compete with the Chinese products, which offer trendy designs and latest features at affordable rates.”
Hassan said some manufacturers tried to focus on niche markets to avoid Chinese influence, but to no avail.
Sana Zahid said that due to uncontrolled inflation, consumers were more concerned about price and less about features of a product. She said the majority of consumers would prefer local brands if they offered both quality and affordability. “Consumers need quality products at affordable rates with better after-sales service or warranties.”
Ali Ahmed, the appliances dealer, suggested that local manufacturers must focus on innovation and price affordability if they wanted to compete with Chinese products. He said Pakistani manufacturers didn’t focus on research and development. “On the contrary, Chinese manufacturers invest huge amounts of money on research and development.”
He said that Chinese manufacturers efficiently built strong brand recognition through unique features.
“The government should extend incentives for local manufacturers to promote ‘Made in Pakistan’ branding,” he suggested.