In spite of not being member of the G8 countries, China’s economic influence across the globe has elicited an unstoppable demand for Chinese goods. The craving in the West is just as high as it is in Africa and Asia. Kadiri Tolani examines the reasons for this craving from the global and domestic imperatives.

The overwrought demand for Chinese products especially among developing countries has become an incurable syndrome. In spite of the negative stereotype many people have about ‘made in China products’, the lust for purchasing them seem untamed.

The manufacturing ecosystem of China, no doubt gives it that competitive edge over major industrialized nations. Not even the United States of America can boast of a comparable chain of suppliers needed to attain a low cost of production.

The production ability of China as it stands today is unassailable and might take donkey years for other emerging manufacturing countries to attain.

A very good example of the comparative advantage enjoyed by China is in the production of iPhones. The production of iPhones in general requires many manufacturers and suppliers of the phone’s components to be located nearby the assembly plant; thus bringing down the production cost.

China’s manufacturing ecosystem has maintained a delicate consonance with this principle and thereby making it the heartland for iPhone production in the world.

It is not as if other countries are not making attempts to transfer this production principle but the hard truth is that it is very difficult for most companies to transfer their production elsewhere having gotten inured to the manufacturing ecosystem in China.

Moreover, the deep sea ports in China give the country the wherewithal to handle a quantity of production that would almost be impossible to replicate in other parts of the world. Virtually all smart phones and tablets are produced in Shenzhen; a city in Southern China.

Many often presume that China’s staggering population is the sole reason for its ascendancy. While that cannot be completely overruled, it is pertinent to note that the logistics of good working conditions are favourably skewed toward China than her counterparts also with large population.

India is definitely a match for China population wise but still has a long way to suit the taste of Western retailers who buy their goods from South-East Asia. Though, many consumers in the West still believes that China’s industrialisation would take many more years before it can stand toe to toe as an original design manufacturer (ODM) with the USA.

China is gradually creating its brand awareness in Western countries. Alibaba Group Holding Limited for instance, is one of those Chinese companies that have begun to mount its consumer branding campaign in New York.

Just as it is in developing countries, consumers in other parts of the world also do believe that the reason why Chinese goods are cheap is because of their volatility.

Manufacturers in other countries are however aware of the fact that the mainstay of Chinese industries is owing to their low profit margin which is subsequently buoyed by their boost in sales. The business maxim adopted by most Chinese industries is simply centered on not only meeting domestic demand but also exporting extensively to global markets at cheap rates.

Credit, however needs to be given to the astuteness of Chinese manufacturers at large, as they continue to ascend the value chain and thereby attaining the higher end of the technological spectrum.

There is hardly any institution in China today that hasn’t incorporated research and production into its academic curriculum.

Howbeit, China for all its economic strength still has a long way before it can authoritatively dictate the tempo of global commerce.

Analysts have often argued that China’s economy is overly skewed towards investment which invariably makes the country’s domestic economy unstable. More than fifty-five new airports are to be built in China alone this year. This, analysts perceive as a capital binge that would eventually lead to huge debts and waste in the long run.

There are also demographic and social challenges not in favour of China’s surge to global reckoning. China is projected to be the world’s oldest society by 2030 and this shift in the demographic paradigm is likely to have a negative toll on the country’s gross domestic product.

That notwithstanding, it is important to laud China’s emerging innovation which is reminiscent of the strides made by Japan and Korea in the 70s and 80s respectively. If Japan is among the G8 countries today, why not China and even Nigeria in the foreseeable future

 The Chinese Lust in Nigeria

China began its domineering entrant into the Nigerian market in the last decade. The fourth republic ushered in a breath of foreign investment drive which was led by China. Virtually every gadget till date has the inscription ‘Made in China’ on them. While it initially appeared as the newest wrinkle, it soon became a tradition to have every product with the ‘Made in China’ inscription on them.

From gadgets to home appliances, utensils, foot wears, clothing lines, cosmetics, furniture and to miscellanies like matches and toothpaste, the ‘Made in China’ inscription was as good as inevitable.

It got to a stage when people began to ask that if everything we now purchase is made in China, what then is made in Nigeria. As funny as it may sound, the truth is that even local manufacturers in Nigeria soon learnt the guise of producing their own products under the ‘Made in China’ logo.

While it is true that the micro industrial sector in Nigeria has not been able to thrive successfully due to the lack of an enabling environment, the mentality of using the prototype of a product as a template has put many Chinese products in bad light among consumers.

Most retail outlets in major Nigerian cities are virtually sanctuaries of sorts for Chinese products. Be it in Ibadan, Lagos, Abuja or Port Harcourt, it is practically impossible for Chinese goods playing second fiddle to goods from other countries.

Another odd facet to the Chinese syndrome is that for any good made in the USA, United Kingdom or any other part of the world, there is always a Chinese equivalent of such product which is usually cheaper.

‘‘It is only those who are gullible that buy Nokia and Samsung phones. Why should I belabor myself when a China phone goes for as low as #5,000? I will still be able to access the internet just like all those using big phones’’ a consumer at one of the shopping malls in dugbe; a business hub in Ibadan told CEOAFRICA.

‘’Do you want to know the truth my brother? We are only forced to stock our shops with these China phones because that is what consumers want. The economic situation of the country is such that people don’t go for expensive things as long there is an equivalent sold at a cheaper rate.

"My customers love buying them because of the features these phones possess. Some would tell you that they prefer Chinese phones because they have in-built televisions. Some claim that it is because of their batteries. For whichever reason it is, I don’t use them because as a retailer, I know the difference in the quality of phones which I sell,’’ a phone retailer confided in CEOAFRICA

Lolade, a sales attendant at Solat Telecoms, Mokola in Ibadan told CEOAFRICA that the perception many people have about Chinese goods is a misconception.

‘’Do you know that even the so-called Microsoft Lumia and Blackberry phones are actually assembled in China? China produces their goods based on specifications. If as a wholesaler, you want to buy a very large quantity of phones within a particular time frame, you are expected to tell them the quality specification you prefer. Besides, price also matters to the final consumer. If as a consumer, I can purchase an android phone for as low as #10,000, why should I go and buy a Nokia phone for #25,000?’’ he said

 Subomi, a sales attendant at Mizbeach, Mokola, Ibadan, in a similar vein revealed to CEOAFRICA that the problem is owing to the nature of those Nigerian dealers who import phones into Nigeria from China.

‘’The typical Nigerian dealer wants to earn much and spending less. I can authoritatively tell you that the Blackberry bold 5 being sold in Nigeria is of a lesser quality to that being sold in the United Kingdom. The dealers in the United Kingdom also purchase their phones from China but they do demand for higher product specifications compared to their Nigerian counterparts. Most countries resort to China to buy their goods but they all give higher product specifications. That is why you find out today that Nigerians still import fairly used phones from the U.K and then resell at relatively cheap prices’’ he said

At dugbe alawo, majority of retailers involved in the sale of electronic appliances also gave an insight into why Chinese goods would continue to hold sway.

‘’Well it is not as if all goods imported from China are bad. Some of them are very good and efficient. It is just that we Nigerians have abused these China goods. I have brothers who make good shoes in Aba and end up inscribing China as the source.’’ One of them said.

A trader who was listening added: ‘’the problem really is not China but the dealers. I have a friend who imports goods from China. He once told me that what he tells the manufacturer is to supply him with sub-standard products at a large quantity. This helps to cut down the price at which he imports them into Nigeria’’.

Another trader who joined the conversation said: "while I was still living with my dad, we both went to the market to purchase a refrigerator. We ended up buying one with the name Panasoanic. It took us almost a week before we realized that the brand we bought was Panasoanic and not Panasonic. It is this dubious attitude of Nigerians that makes most Chinese products look bad."

In conclusion, one can infer that China’s mass production and mass consumption formula has proven fruitful over the years. Nigeria no doubt has the potentials to provide a similar thrust that would drive exports and diversify the economy. Nigerians would definitely take a cue if the needed infrastructures are on ground.