China'S Footwear And Other Shoddy Commodities Have Been Caught Up In Uganda.

October 19th, in Uganda, East Africa, China's commodities occupy the low end.

Counterfeit products impacting genuine products

In Uganda, products from Europe and the United States still occupy the high-end market, which are expensive and lucrative. The commodities from several Southeast Asian countries such as Malaysia, Vietnam and Indonesia and South Africa, Mauritius, Egypt and other African countries occupy a part of the middle end market. The selling price is higher and the profits are not thin.

In the interview, the reporter learned that China's commodities first entered Uganda and enjoyed a high reputation in China.

This practice has greatly damaged the reputation of Chinese brands, and Chinese commodities have become synonymous with "problem products" since then.

Take China's tiger head brand dry battery as an example. When the product first entered the Uganda market, its sales rose all the way, so it caused a proxy war between two local companies.

However, with the entry of a large number of counterfeit products, the reputation of the brand has fallen sharply.

The local government once included it in the "black list" of imported goods.

Today, tiger head dry battery has been hard to find in the local market.

A pair of poor shoes triggered "

As China's commodities spread across all levels of production, living and consumption in African countries, the negative effects of counterfeit and inferior commodities are everywhere, and may even become the fuse of a storm.

Since last October, the Uganda quality standard bureau has planned and step-by-step Raiders to seal up Chinese warehouses, and footwear products are the key objects to be seized.

According to the Chinese Security Council of Uganda, the safety committee of the Chinese people's Republic of China (more than 10), a large number of Chinese merchants were put up for storage, resulting in huge losses.

According to the reporter, the whole event originated from a pair of inferior leather shoes.

According to local sources, Kahinda Otafilre, Minister of trade and industry in Uganda, bought a pair of leather shoes made in China at the time. But after a week, the shoes had many quality problems such as deformation and degumming.

He immediately summoned relevant departments to ask questions, which triggered the "quality storm" for China's footwear products.

In this incident, not only Chinese businessmen were affected, but also local retailers were raided, and the law enforcement authorities in Uganda also used power to blackmail.

For a time, a large number of people in Ukraine were in a state of panic.

Finally, through the active mediation of the security committee, the quality standard bureau and the Chinese businessmen sat down to discuss, and came up with a set of quality standards for footwear products, and agreed to give the Chinese businessmen a "buffer period", and the incident gradually subsided.

After the incident, some local importers stopped importing footwear from China.

Arthur Boussinger, a Uganda businessman who imported more than 10 containers of footwear every month, told reporters that on the one hand, influenced by this storm and on the other hand, he was also condemned by his conscience. He decided to stop related trade.

Some Chinese businessmen explore business pformation and industrial pfer.

In the whole incident, although many people are affected by the attack, there are also many beneficiaries.

Zhang Zhidong, who was pferred from South Africa to Uganda to engage in footwear trade a few years ago, has given up the low-end positioning from the beginning. The products imported by her company can not reach the standard that Uganda uses EU standards as reference, but the quality is excellent. Therefore, sales and profits are relatively stable and have escaped the "quality storm" in Shanghai.

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Xu Yinfen, vice president of Uganda Qingtian Association, who is also engaged in footwear trade, said that footwear products could only be sold at a cost price or a slight loss due to fierce competition in the market and the sharp depreciation of the Ukrainian shilling.

It can be seen that Chinese goods are basically unprofitable in the low-end products market in Uganda.

Many Chinese businessmen have seen this, and have begun to enter the middle and high-end market, and are more proficient in using local laws to protect themselves.

According to Peng Jianxin, a Chinese businessman who has been engaged in trade for 15 years and has a large scale of operation, he has won nearly 30 well-known brands in China in the past few years, and through legal means, he has cracked down on unfair competition among a number of counterfeit products dealers and achieved good results.

As a well-known figure in the local Chinese business circle, his practice has also played a leading role, and many Chinese businessmen are gradually shifting their business direction.

The rise of the "brand + quality" mode will play a positive role in restoring the reputation of "made in China" and will further expand the share of Chinese products in the African market.

According to Wu Hua business, in view of the huge domestic logistics throughput, the domestic export quality control system can only be implemented by spot inspection now, and there are still loopholes in the counterfeit and shoddy products.

At the same time, although the prices of Chinese goods are low, they are often several times higher than those of the domestic market after the expensive logistics and freight links.

Therefore, Chinese traders engaged in trade believe that monitoring quality in terminal market is more feasible and lower cost. To achieve this goal, the first thing is to solve the problem of industrial pfer, that is, the pfer of domestic small and medium-sized manufacturing industry to the terminal market.

Over the past few years, some Chinese businessmen have been exploring the way of industrial pfer, and achieved certain results. A number of production oriented factories have settled in Uganda, and their business conditions are generally good.

One of the $10 million slippers invested by Zhejiang businessmen will become a large manufacturer of single footwear products in East Africa. Other Chinese factories will cover plastics, building materials, paper, steel and other industries and industries.

Many African countries, including the Uganda government, welcome investment in China.

This will not only increase tax revenue of local governments, solve the employment problem of large numbers of locals, but also contribute to upgrading the level of local industrialization.

At the same time, this will help alleviate the pressure of trade imbalance with most African countries and avoid more trade disputes in the future.