Only 29% Indian consumers purchased Chinese products this festive season
- ● 40% Year over Year reduction in absolute number of consumers who purchased Chinese products during festive season
- ● 66% of those who purchased “Made in China” items did it as they offered higher value for money
- ● 71% respondents say that they consciously did not buy Made in China items this festive season
November 17, 2020, New Delhi: Indian consumers continue to prefer low-cost products that offer value for money and that is where “Made in China” products enter the Indian retail markets as a perfect match. China sells all “cheap and best” products that Indian consumers need – from gadgets and smartphones to festive lighting, and from toys to vehicle accessories. Even after a prolonged lockdown induced by the ongoing Covid-19 pandemic and Government of India imposing an import ban on certain categories of products “Made in China” items post the border conflict in June, Chinese products continue to find favour amongst many Indian households.
After over 20 Indian soldiers were martyred in Galwan valley by their Chinese counterpart in June this year, the anti-China sentiment grew in India. To understand whether the Indian consumer was mindful of Made in China products during festive shopping and whether they made a conscious effort to refrain from purchasing them, LocalCircles conducted a survey which received more than 14,000 responses from consumers located in 204 districts of India. The survey also tried to understand the primary reason that prompted Indians to buy Chinese products this festive season.
29% consumers bought Made in China products this festive season
To the question that asked, “How has your shopping been this festival season in regards to buying products Made in China?”, 7,452 responses were received. Of which, 29% of respondents said they “bought made in China products this festive season.” On the other hand, 71% of respondents maintain that they “consciously did not buy made in China items.
When a similar question was asked in November 2019, 48% consumers had admitted to buying China made products during the festive season last year which dropped down to 29% this year marking a 40% year over year decline in terms of absolute number of Indian consumers buying Made in China products.
Percentage of consumers who bought Made in China products during festive season declined by 40%
Via another question, the survey tried to understand “of those who bought Chinese products during the festive season, what were the key reasons that they chose them?”. 6,722 responses were received. Of which, 66% of respondents who purchased made in China products this festive season did so because they felt the products offered higher value for money, 13% said “uniqueness”, and 25% said “can’t say”.
66% of Indians who purchased Made in Chine products this festive season did so because they felt the products offered Value for Money
Though 71% consumers did not purchase Made in China products this festive season, many of those who did ended up doing so because of their lower prices. With earnings being impacted for many households this year due to the pandemic, for many buying the lowest cost product was not a choice but the only option.
According to most consumers, the Indian counterpart for a Chinese product is generally more expensive though it might be of better quality. However, many festival related items like LED lighting, tealight candles, plastics, are one time use products and hence quality is not the top criteria for many consumers etc. For some other products like mobile phones, air purifiers, gadgets and appliances, consumers have reported China made products to be equal or better in quality.
While on an overall basis, the Indian consumer did spend less on Chinese products this year, the key takeaway for Government of India and MSMEs is to make manufacturing more competitive in India and improve scale. If the high quality products that are Made in India can be produced at scale and cost of capital for Indian MSME is reduced through Government support, products Made in India will definitely find preference amongst Indian consumers and even other retail markets around the world.
14,000+ responses were received from residents of 204 districts of India. 66% respondents were men while 34% respondents were women. 48% respondents were from tier 1, 30% from tier 2 and 22% respondents were from tier 3, 4 and rural districts The survey was conducted via LocalCircles platform and all participants are validated citizens who had to be registered with LocalCircles to participate in this survey.