Opinion

How China is influencing the Pakistani Electronics Industry

With many leading Chinese brands tapping the Pakistani market recently, we should see price wars getting fiercer in the Pakistani Electronics Industry.

Last year, Daraz launched 3 Chinese mobile brands in Pakistan, Infinix, Injoo and Ophone, Pakistanis for the first time had access to high-quality yet low-priced phones.

It means that these brands see Pakistan as a very profitable market for their low-end phones and with the growth of 3G/4G subscribers in Pakistan, you should see more of these manufactures entering the country.

And what do you know, many Chinese mobile brands actually offer better features and functionality for the same price than the world’s more renowned brands. For example, Huawei’s mobile phones actually offer a greater RAM for the same price than Samsung.

While Samsung can bank on its brand name and charge you higher for it, Huawei is still establishing itself in the global consumer electronics market and will keep the price down.

With Chinese brands like Haier, TCL and Lenovo already established in the Pakistani TV market, Hisense and Changhong Ruba are the latest Chinese entrants in the scene. And all of these brands are offering televisions with 4K, High Dynamic Range performance.

But why are these Chinese brands considering overseas expansion? This is because the Chinese TV market is maturing, even though newcomers like Xiaomi and Whalley are bringing their own innovations in Smart TVs. The top Chinese brands cannot increase their share in the local market and have look for overseas markets if they want to thrive.

Many of the latest Chinese brands are looking for local retailers in Pakistan to sell their products i.e. they are not actually investing in Pakistan directly. They want these local retailers to buy their inventory and sell them at a profit.

However, the growth of these Chinese tech brands in Pakistanis can perhaps do away with the impression that the Chinese always produce low-quality stuff and fake stuff. Because believe it or not, some of this Chinese stuff is actually way better than what you get from a global brand.

This means that Samsung, LG and QMobile in Pakistan will be forced to drive down the prices of their mobile phones or offer more exclusive deals.

China is already creating $30 billion fund to support the country’s huge electronics supply chain, which means that it is serious about creating its name in the global electronics scene. What’s lacking is a planned advertising strategy for developing markets. Unless these Chinese brands do not advertise on various channels, the adoption rate of their technologies is going to remain very low.

 

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