Chinese goods are everywhere and are cheap and of low quality.

Photo by Ragnar Vorel on Unsplash

One of my friends is starting a business of selling kids toys online, mainly on Amazon, he has been doing research on whether to source kids toys from a local manufacturer or import from China. Sourcing from local manufacturer make products expensive and this hits at the profit, so he decided to check local wholesale market where he can check products from both local manufacturer and imported products from China.

I accompanied him to the wholesale market, its crowded and chaos prevails everywhere, shops are filled with lots of items in small space and it’s difficult for customers to move around and see items. We visited few big shops and most of the stocked items are Chinese made.

After a few hours and visit to many shops and talking to many people we find the reasons why Chinese goods are so popular

They are cheap and merchant makes more profit

Chinese goods exists because selling them is more profitable and if one merchant try to sell locally manufactured goods at a bit higher price then he loses his customers to competition, so mostly all merchants go for Chinese goods

The quality is average

what I see from observing Chinese goods that their quality is not bad but ok, the price at which goods are offered, their quality is good. It means that we can say that end consumer has no major complaint again the quality and this encourage merchants to buy Chinese goods, more profit, and marginally satisfied customer.

What why they are bad for us

It’s unfair for local manufacturer

This is totally unfair for local manufacturers as they cannot produce goods at this price point, they don’t have access to cheap raw material and cheap labor, moreover China is not a democratic country so they force their workers to work for 12+ hours per day which is not possible in most of the other countries. Chinese good are destroying or decrease the pace of growth of manufacturing industry and many other related industries

They are killing innovation

They are killing innovation, they are copycats, their main motive is to produce something profitable, which they can sell and get profit and best way is to copy something which is already there in the market and produce it at low cost and sell it to the entire world.

Most of the world countries are dependent on Chinese goods, if China stops selling its goods it would be very difficult for local merchants to find alternate sources, we are dependent on Chinese good. It’s a wake-up call for all countries, get up and build your manufacturing industry to at least satisfy your local needs.