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Those 'dragons' on wheels...

The "China syndrome" has become so all-pervasive that I wouldn't be surprised if mothers soon began to replace Gabbar Singh (the villain from Sholay) with the Chinese as the new bogey to induce their children to be good.

Starting in a somewhat small way with dry cell batteries, Chinese goods have started slowly, but steadily, replacing the bulbs, tube lights, table fans, televisions and toys of Indian households.

The usual refrain from Indian counterparts producing these goods is that even though Chinese products are price-competitive, they cannot match the quality or the specific local conditions of the country. And like many, they are patiently waiting for consumers to return to their trusted Indian brands!

They may have a long wait on hand. A Japanese battery advertisement has the punch line: "Don't you ever give up?". For the moment, though, Chinese products don't seem to be giving up.

This popularity for all things Chinese among Indian consumers compelled me to do some detective work. Today, for instance, even our trusted cycle rickshaws are increasingly being replaced by Chinese ones. To test the quality of these offerings, I decided to ride the "dragon on wheels" and find out whether it really breathed fire.

As I settled down, I marvelled at how the driver manoeuvred through the maze of cars, scooters and heavy traffic. It was hard to ignore the fact that the Chinese rickshaws were much lighter than the Indian ones and had a superior design, besides being half the price of the domestic ones.

At the end of a comfortable ride, I decided to confirm my findings with the owner of the rickshaw. To my surprise, his answer not only startled me, but also set me thinking about the future of Indian products. I was wrong on every single count - price, weight as well as design.

First, the rickshaw-puller said that the price of an Indian rickshaw was much lower at Rs 3,800 compared to the Chinese one that he bought at Rs 4,200. Second, the Chinese rickshaw was much heavier than the Indian one. Third, there was not much of a difference between the design of the Chinese model and its Indian counterpart.

So why did he buy a Chinese rickshaw? His answer was simple - people just did not want to ride on the Indian rickshaw. This is a very important message: the Chinese are changing the taste of the average Indian consumer. They have studied the market well and are coming with products that are suited to Indian conditions.

The message for Indian companies is clear. They need to work out strategies to counter the Chinese march into the minds of Indian consumers. That march has already started with the mushrooming of "China bazaars" in all corners of the capital, rendering small electronics manufacturers jobless.

A customer can easily walk into these markets and buy anything for as little as Rs 65. These markets are proliferating - from Daryaganj to Laxmi Nagar, and parts of East, West, South and North Delhi. It's not even that this technique is novel -- in the port city of Chennai you can still buy any household plastic item for a flat rate during a leisurely walk on the beach.

It's no longer price or quality of the Chinese products, but the change in tastes of the consumers that is the more serious issue now.

The writer is director, economic and taxation, Confederation of Indian Industry. The views expressed here are his own

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