Chinese electronics: Cheap is not enough

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.