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The flashlight industry’s battle against low-cost Chinese imports

– By Arun Kumar Sahay

Flashlights, once a simple and ubiquitous tool, have become a battleground for manufacturers and retailers worldwide. The influx of low-cost Chinese imports has led to a fierce competition bubble that raises important questions about quality, innovation and the sustainability of flashlights in India. These flashlights are often priced lower than their Indian counterparts which makes them an attractive option for consumers and retailers looking to maximize profit margins. The established supply chains and market dynamics of this business, which is expected to reach a value of $2 million by 2028, have undoubtedly been impacted by the inflow of Chinese imports.

Quality vs. Cost

One of the primary concerns surrounding low-cost Chinese imports is the quality of these products. While they may offer a more affordable option for consumers, there are often compromises made in terms of materials, craftsmanship and durability. There are genuine concerns about the reliability and safety of these flashlights, particularly in critical situations where dependable lighting is essential. Consumers often rely on Maximum Retail Price (MRP) declaration to make informed purchasing decisions. Without these labels, they may find it challenging to compare prices and assess the value of a product accurately. In some cases, unscrupulous sellers might exploit this absence to charge higher prices than what would be considered reasonable, essentially taking advantage of unsuspecting customers.

Many established Indian flashlight manufacturers prioritize quality and innovation while investing in research and development to create reliable and feature-rich products. This has created a dilemma for both consumers and manufacturers as the race to the bottom in terms of pricing can jeopardize the reputation and integrity of the industry.

Regulatory Challenges

Another aspect of the battle against low-cost Chinese imports is the complex regulatory landscape. In several countries, including India, flashlights are subject to legal metrology regulations that establish guidelines for product labelling, packaging, and quality standards. Under The Legal Metrology (Packaged Commodities) Rules of 2011, it is the responsibility of the manufacturer or seller to ensure compliance not only with the information dissemination requirements outlined by these rules but also with the precision and reliability of the provided information.

In some cases, low-cost imports may not comply with the stringent safety and quality regulations of Western markets, putting consumers at risk. This has led to increased scrutiny of imported flashlights and calls for more rigorous quality control measures to protect consumers and the reputation of the industry.

Sustainability Concerns

The flashlight industry’s battle against low-cost Chinese imports also extends to sustainability concerns. Mass-produced, inexpensive flashlights often prioritize short-term cost savings over long-term environmental impact. There is also a significant discrepancy in battery recycling practices within the flashlight industry. Established flashlight manufacturers in India are obligated to recycle up to 70% of the rechargeable batteries used in their products. These products may be more expensive upfront but contribute to a more sustainable future by reducing waste and promoting responsible consumption.

However, a noteworthy problem arises when it comes to unbranded or unorganized players in the market. These entities frequently do not comply with the recycling regulations which in turn creates an environmental concern and contributes to the challenges faced by the industry as a whole.

Consumer Grievance Resolution

A considerable portion of unbranded flashlight manufacturers appears to disregard the importance of conforming to established consumer grievance redressal standards. This negligence on their part creates a distressing situation for consumers who encounter problems with their flashlight purchases. This leaves consumers with scant avenues for addressing issues related to their products. Therefore, there is an urgent requirement for implementing compliance costs and regulations within the flashlight industry. Such measures would serve a dual purpose by not only fostering environmental responsibility but also by providing enhanced consumer protection.

Conclusion

Ultimately, consumers play a pivotal role in shaping the future of the flashlight industry. The flashlight industry’s battle against low-cost Chinese imports is a complex and ongoing struggle that touches upon issues of quality, innovation, sustainability and regulation. In response to the challenges posed by low-cost Chinese imports, many consumers and organizations have advocated for supporting local manufacturing. This approach is aimed at helping sustain local economies and industries, promote job creation, ensure adherence to local regulations and foster a sense of community and trust. As manufacturers have a vested interest in maintaining their reputation within their own markets, local manufacturing often comes with the added benefit of better quality control and customer support.

(Arun Kumar Sahay is the Senior Vice President & Head Operations at Eveready Industries India Ltd.)

(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.)

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