Late Extra: Surging Chinese exports to India ride the festive fever of Diwali

In a span of just five years, the Indian consumer without fuss has accepted Chinese made goods. This year, however, Chinese goods ranging from coloured twinkling lights to firecrackers to ceramic decoration pieces have grabbed headlines in all media categories. The Chinese could not have got such a publicity blitz for their goods even if they had organised trade shows all over India.

The two main factors, which have spurred the acceptance of Chinese goods by the Indian masses, are their innovative range and quality and the very, very competitive prices.

Another factor is the welcome growth of pollution consciousness in India focused on both noise and air pollution. This awareness is being spread through a number of mediums – television clips, articles in print and oodles of space being spared by the media in the coverage of celebrity endorsement of the need to protect the environment.

For centuries the Chinese have been acknowledged for their expertise in pyrotechnics and Indian manufacturers have been stunned by the response to anti-pollution campaigns especially on this year's festival of lights. So instead of merely sitting back and allowing Chinese made firecrackers to run them out of business they are fighting back.

There could be a lesson for trade organisations in the strategy adopted by Indian manufacturers. Instead of protesting and demanding that the government stop the import of Chinese made pyrotechnic goods the major players have imported the technology to improve their products and compete with readymade products imported from China.

Imported technology

Bulk fireworks manufacturers based in Sivakasi, South India are reported to have imported Chinese technology for their products. Sivakasi products according to the fireworks manufacturers association account for about 80 per cent of the nearly $200 million firecrackers market in India.

Going by the size of the market, one can imagine how the Chinese products proliferation has impacted on their business. So for Sivakasi this diwali the guideline seems to be 'if you can't beat, join them'.

The Chinese-Indian collaboration in the fireworks segment has set yet another milestone. Indian importers have entered into a 'label agreement' with the Chinese exporters. So instead of Chinese names, the crackers have been re-named after either popular Bollywood film stars or films. What the Indian manufacturers have done is to pass on the cost of re-labeling to the Chinese manufacturers. Sound business strategy.

This Chinese hold on India's Diwali festival this year is not restricted to just firecrackers. Others include coloured twinkling electric lights normally associated with Christmas tree decorations.

Christmas tree lights have for at least the past decade have been equipped with microchip powered musical jingles – normally playing synthesized tunes of popular carols. The Chinese have changed that for the Indian market – so instead of the lights flashing to western tunes, the Indian imports play tunes of either devotional Vedic hymns or popular Hindi film songs.

The Chinese goods dominated Indian Diwali is as silent as their fireworks. So this Diwali, while Chinese lights belt out popular Indian jingles, the Chinese tills are ringing merrily too, to the sound of dollars pouring in from the world's second largest consumer market.

The writer is an India-based journalist.