Exporters Face Tough Competition From Se Asian Countries

Exporters got a taste of the competition they are likely to face from South-east Asian exports at Ambiente 98 Frankfurts spring show.

The 93 exhibitors from India got a close glimpse of what the coming months hold out for them as some exporters from South-east Asian nations recorded whopping increases in orders at the show. The prices of their wares have plummeted owing to a sharp depreciation in their currencies against the dollar.

The show held from February 14-18 and touted by the organisers as the greatest consumer goods show on earth began under a cloud of economic gloom. There was very cautious buying by trade visitors whose restraint was dictated by the high unemployment and a general economic slowdown in a number of European countries, particularly Germany. I have been able to book 40 per cent more orders this time, commented Kok Chean-See, a Malaysian Chinese.

 

The Malaysian ringgit, although not so badly battered as the Thai baht or the Indonesian rupiah, has helped Malaysian suppliers gain an edge over their Indian counterparts.

Exhibitors from Sri Lanka and Bangladesh, who were also present at the show, said they had also benefitted in terms of orders received at the show.

But, most European customers remained wary of placing large orders.

There is a cautious approach by our customers...high unemployment in Germany is a major reason for the restrained consumer behaviour coupled with an overall slowdown, explained Surjeet Singh Kharbhanda, an Indian businessman who is a distributor of a variety of imported consumer goods ranging from gift articles to fashion jewellery to silk products.

Kharbanda, who has set up a large distribution network in Europe, sources his products from a number of Asian countries, including China, India, Taiwan and Hong Kong.

Indian suppliers will lose their business in Europe if they do not pay attention to quality, finishing and packaging, timely deliveries and professionalism, he said.

Kharbanda said exporters faced a huge challenge from South-east Asia and China, whose products were not only of better quality but were offered at much lower prices. Chinese suppliers are also well organised, he added.

Most of the Indian participants were Moradabad-based suppliers of brassware products. We have been exhibiting our products twice a year at Frankfurts spring and autumn shows....though our German customers have been cautious in their buying this time, we believe that this is the best place to sell, Mohamed Akram, a partner of the Moradabad-based Novelty Trading Co, said.

Abdul Azim, the president of Visba Bathy and Body Works, Moradabad, was content that his business had been not as bad as originally expected. He said, we have an established clientele. While our sales have not increased, they have also not declined, he maintained. This show is an eye opener for us. We pick up a lot of ideas from exhibitors from other parts of the world. We get an exposure to international trends, pricing, designs, he said.

Hanna Antoszewska, a Polish businesswoman who is president of Best Home International Ltd. in Warsaw, saw good potential for marketing Indian products in Poland and other East European countries.

Antoszewska, who has visited India a few times, said her company supplies to nearly 70 retail outlets in Poland and is also planning to export to other East European nations. She said her company was interested in buying metal products in the form of figures with Indian motifs. However, the problem is that Indian exporters want huge orders, whereas I can order only a limited quantity because my clientele consists mostly of art galleries whose needs are limited, she said.

Western trade visitors say Indian exhibitors should concentrate on value-added products and provide new designs and articles. They ought to focus on niche segments and supply value-added products, if they are to survive in the fiercely competitive global markets...their perception that Westerners will buy anything that is cheap is certainly wrong, said Jacques Albert, a Belgian businessman who imports from a number of Asian countries, including India.