Chinese Goods Sale To Witness A Huge Fall Of 40–45% In The Indian Market On Festive Season

Posted on: Nov-2017 | By: QY Research | Consumer Goods & Retailing

For the last few years, Chinese products have done an appreciable business in terms of Diwali. But in this festive season, especially Diwali Chinese product can be a major drop in sales. From lights to gifts to Diwali and home decoration, a majority of the products are imported from China. Sales of Chinese products can be reduced by 40% to 45% this year compared to last year. This is revealed in a survey of the Assocham-Social Development Foundation (ASDF).

Assocham Secretary General DS Rawat said, “During Diwali, sales of the highest earning products such as decorating lights and gifts can be affected by 40–45%. Apart from this, sales of electronic goods made in China such as mobile phones, LCDs, and others are expected to fall between 15% and 20%.” Industry Board said that he has talked with wholesale, retailers, and traders to know the estimated sale of Chinese products in many cities of the country such as Bengaluru, Ahmedabad, Chennai, Delhi, Hyderabad, Bhopal, Dehradun, Lucknow, Jaipur, and Mumbai.

According to an estimation, in 2016, the sale of Chinese products in India was close to Rs 4,000 Crore. Out of the total sales, the majority of the trade was related to Diwali products such as toys, fancy lights, gifts, plastic accessories, and decorating goods. According to the survey, these Diwali people are giving priority to Indian products. According to the released paper and shopkeepers, most consumers are demanding Indian made lights. One of the reasons for the fall in sales is the environment created in the country against Chinese products. Apart from this, shopkeepers do not provide any guarantee on Chinese goods, owing to which people are opting to goods with a proper guarantee.

Some of the other factors that have influenced the sales drop are the Indian government furiously focusing on the Make in India initiative. The ongoing dispute among Indo-China border at Doklam has also affected the business among the two nations. On the other hand, Chinese player in smartphone market are performing appreciably in the festive season.