Demand for Chinese goods to decline by 45%: CAIT

The Dollar Business Bureau

Demand for China-made goods has gone down by 45% this Diwali, with many retailers abstaining from keeping stock following the boycott call in the country, The Confederation of All India Traders said in a statement on Wednesday.

The decline is expected in the aftermath of several social media campaigns and several others awareness programmes that emphasised on abandoning goods made in China.

"Boycott Chinese goods on Diwali festival campaign on social media has greatly impacted sale of Chinese goods this Diwali festive season as there is about 45% decline in demand by retailers from wholesalers this year," Confederation of All India Traders (CAIT) said.

CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said these campaigns have resulted in a decline of about 45% in demand of Chinese goods in comparison to last year.

"The penetration of the campaign can be understood with the fact that beyond markets it has travelled to houses and has become a talking point among women and children who are considered as main shoppers during any festive season and this has led to decline in demand of Chinese goods," the traders’ body said.

Chinese products such as crackers, electric bulbs, kitchen appliances, toys, gift items, electric fittings, electronic products, consumables and home decoration items will bear the brunt of a declining demand in India.

These awareness campaigns have also given a new life to traditional potters, who earlier had to bear losses due to imports of China-made goods. This year, they have developed plenty of artistic and innovative products as they hope to get a good market share as a replacement of Chinese bulbs and decorative products, CAIT said.

But these campaigns have a reasonable impact this Diwali season, as many traders had already imported Chinese goods. If the campaigns such as these continue, then China will suffer huge trade losses in the forthcoming Christmas and New Year shopping festivals.

“The need of the hour is to develop viable competitive products to discourage sale of Chinese goods in India, with government planning a long term strategy by providing all out support to the domestic small manufacturing sector to produce quality goods at cheaper prices,” CAIT said.