Chinese electronics: Cheap is not enough
Sari P. Setiogi, The Jakarta Post, Jakarta
Many little known brands of electronics are on sale in Glodok, a electronics haven in West Jakarta. An assortment of brands can be found at the center: Chang Hong, Aurora, Cinderella, Bombasound, Jonsa, Nakai, Nikei and many others.
Most are imported from China and compete in the electronics market with well-known, established brands.
"I am extremely pleased with the availability of these electronics from China. The prices are low and the quality of the goods is also acceptable," Saidi, a state company employee who was looking for a 14-inch television set, told The Jakarta Post.
A made-in-China 14-inch conventional TV -- not one with a trendy flat screen -- is available from Rp 675,000 (US$75) up to Rp 700,000. Those made in Japan cost more than Rp 1 million, but a similar type Korean LG is priced at Rp 760,000.
The price gap has narrowed because the government in February lowered taxes on electronic goods, which brought about a 5 percent to 10 percent decrease in market prices.
"Chinese electronics are now at least on the same level as those from Korea," said a shopkeeper at Benua Electronics. "The price is very low, so why wait?" he said. Several Chinese branded electronics can be found at his shop.
"If someone could get two items for the price of one Japanese item, why would they consider buying the latter? They pay for the brand," said the man.
"I actually came here for electronics from China, which I heard were priced very low. But then when I see the price tags, the difference between Chinese and famous brands is not that significant," said Abe, a university student.
Abe said he preferred to buy a well-known brand because he could be sure of reliable after sales service and proper service centers.
Maria, a housewife also shopping at Glodok, has sworn that she will never buy Chinese electronics. "I can never be sure about the durability and quality. I also heard that the service centers sometimes don't really exist," she said.
"I have a friend who bought a Chinese brand of digital video disc (DVD) player. It worked for only three months and then broke down. The address given for the service center was later found to be a noodle shop," Maria said.
Ahiung, from Utama Lancar shop, said people now preferred well-known brands of electronics instead of Chinese brands. "Once Chinese electronics were booming, but the market for them is no longer as good as before," he said.
He named two main reasons: decreased prices of the established brands due to the lowered tax, and the quality and after sales service offered by distributors of Chinese electronics.
Chandra, from Toko M.C., told the Post that the slowdown in the sales of Chinese electronics should be a lesson to the distributors.
"They should realize that low prices are not enough. Our customers are well-educated. They want an item with satisfying after sales service, legitimate service centers and of course durability," he said.