African buyers favor made-in-China products

17 january 2013

BEIJING — Commodities from China are enjoying growing popularity among African merchants as the wallets of local consumers have started to bulge amid a fast-expanding African economy.

Quality Chinese goods with competitive prices are particularly welcome among increasingly affluent African consumers, according to Luo Yifeng, a Chinese merchant who is purchasing for his African retailers at the ongoing Canton Fair, a bi-annual trade fair held in the South China boomtown of Guangzhou.

“I have made quite a few purchases at the fair for buyers in South Africa and Tanzania,” Luo said, adding that his African clients are expecting their items to be delivered within one month.

Luo, who has several stores in Africa, said that both the buying power and lifestyles of African consumers are changing amid the continent’s rapid economic development, and local consumers are no longer content with low-end daily necessities.

Data show that consumers will spend half of their incomes on goods other than food and shelter if their annual household incomes exceed $5,000. It is estimated that 90 million African residents currently fall into this demographic, and the number is expected to rise to 128 million by 2020.

Home appliances from Chinese electronics producer Changhong have become popular with Madagascans for the company’s after-sale service, while Hisense, another Chinese electronics brand, is one of the top ten brands among South Africans in terms of market share, according to Luo.

Aside from trade fairs, African merchants also make direct orders from local wholesale markets in Shandong, Zhejiang and Guangdong provinces. A restaurant owner surnamed Xu in Dongguan, Guangdong Province, said he always accommodates African merchants who check local commodities information with him.

Online shopping, which has made it much easier for African merchants to access Chinese goods and has considerably lowered their purchasing costs, has made trade with Chinese producers quite profitable.

Cai Guowei, president of the Chinese Chamber of Commerce in Madagascar, said 1 yuan (16 cents) worth of online purchases from China could sell for 4 yuan in Madagascar and even 6 yuan in Angola and Guinea.

China-African trade has increased significantly, with African buyers attracted by made-in-China goods for their quality and good prices, said Bao Wansheng, who formerly worked in China-African commercial services offices in Madagascar and Senegal.

Official data show that China is Africa’s largest trading partner, with bilateral trade hitting $166.3 billion in 2011. Exports from China surged 21.9 percent year-on-year to $73.1 billion.