Sale of Chinese goods to drop by 45% this Diwali

Sale of Chinese decorative items is likely to decline by about 40-45 per cent this Diwali, when compared to previous years, said a report by an industry body.

Local players said that the call to boycott Chinese products ahead of Diwali last year was still fresh in the minds of traders and they are cautious about the stocking of Chinese products.

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) survey said that there seems to be a decline of about 40-45 per cent in consumption of Chinese products this Diwali in comparison to last year. People are preferring Indian products over Chinese goods. the demand of electronic items like LCDs, mobile phones and others items made in China has also declined by 15-20%, said D S Rawat, secretary-general, ASSOCHAM, while releasing the paper.

ASSOCHAM estimates that Chinese goods worth Rs 6,500 crore were sold during Diwali last year, of which over Rs 4,000 crore was Diwali-related items such as toys, fancy lights, gift items, plastic ware and decorative goods among others.

Consumers are not interested in purchasing Chinese products while displaying interest in local products including earthen diyas. In past few years there was a huge demand for made in China fancy lights. Also, no shopkeeper is giving guarantee on Chinese items once sold. Fire crackers made at Sivakasi in Tamil Nadu are preferred, adds the paper.

"Traders had huge inventory of unsold Chinese goods last year. They have deliberately not bought Chinese products this year. Even people are not buying Chinese goods," said Shailesh Patwari, president of Gujarat Chamber of Commerce and Industry (GCCI), which had boycotted Chinese goods last year in wake of the support of Chinese government to Pakistan in abetting terrorist activities in India.

DROP IN DEMAND

• ASSOCHAM estimates that Chinese goods worth Rs 6,500 crore were sold during Diwali last year, of which over Rs 4,000 crore was Diwali-related items such as toys, fancy lights, gift items, plastic ware and decorative goods among others.
   
• People are preferring Indian products over Chinese goods. the demand of electronic items like LCDs, mobile phones and others items made in China has also declined by 15-20%, said the survey.

"While we had to call for boycott of Chinese goods last year, it is more or less on auto pilot mode this year. There is a lack of demand from traders ."
Shailesh Patwari, President – Gujarat Chamber of Commerce and Industry

"The sale of Chinese goods is down by about 50% this year. This year we have not seen much of new products."
Laxmanchand Aswani, President – Amdavad Cutlery Market Association.