Chinese products were once as cheap and low-quality brand but now they are no longer considered that way. Starting from the consumer electronics like mobiles, Televisions, refrigerators to fitness gadgets and wearable devices, China is giving its Indian counterpart a tough competition in the market.
Last September a Beijing based company launched a product with the flash online sale in the 4K high definition TV segment. The sale of 55inch TV which was priced fewer than 60,000 lasted all of three minutes.
It bagged 4,600 units and stocked out for the day. Seeing this, Videocon has immediately reacted and has cut down the price by 20,000 in the same segment.
Chinese products have inherited advantage due to its low manufacturing cost. It is the pricing that attracts more customers.
But the pricing is not the only point for them to be upper hand in the market, they are focusing on the product innovation and they are into breakthrough technology also.
Companies like Xiaomi, Lenovo, and LeEco regularly refresh their product and create excitement for the brands. Their basic principle is to enter the market with a decent product and should be initially sold at the lowest price possible.
The cheap product provides access to price sensitive consumers. The aspiring brands increase quality and price and attack the next lowest segment until it achieves a dominant position in the market.
The perception towards Chinese products is changing and in the last two years, consumers have been perceiving because of high-end products.
For example, Haier (a Chinese Brand) is producing high-end products which are equal to LG and Samsung. Haier is going to be the biggest brand by 2020 as they are having 7-8% share in refrigerators market in India. Now, they may reach up to 12% by the end of 2018.
Coming to mobile phones, companies like Xiaomi have reached on top due to their pricing and quality. Recent Chinese branded phone One Plus is one of the leading brands in mobile phones today.
In fact, one plus 5 mobile phone has been rated as the best android phone in the market and if you compare its price with another high end android mobile phones like Samsung galaxy s8 there is a huge price difference. There are other emerging brands like Oppo, Vivo in smartphones.