Demand and Chinese Goods

I was talking to an owner of a crockery shop today. He said the tremendous competition in the market and the demand of customers to see each product physically and that also a range of products under each category were imposing huge costs on them in terms of logistics and warehousing. This was an added burden as the range of products was simply increasing at a fast pace and it was difficult to cope up. Secondly, Chinese products were still coming but now through Thailand. It only meant a slight increase in costs for the retailers and customers. Place a bulk order today along with some wholesaler’s and the container would be shipped and delivered at times within fifteen to twenty days. Manufacturing in India simply could not match the costing cum quality of China. Customers for example during the festive season would ask for good quality but say at a price point of Rs 500/-. The Chinese would provide five varying products at that range and the quality was certainly satisfactory to good. Indian manufacturers simply stated their inability to do so. Our owner of the store was a wholesaler himself as it turned out.

Food for thought.

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