'Creating designs for Chinese traders to copy'
Friday, 20 July 2007
Rosalia Omungo
''We are crying,'' laments Millicent Otok, as I take a seat next to her at her stall. ''Why are you crying?'' I enquire. ''They come and copy our items,'' she says, in reference to Chinese traders in the Kenyan market.
''Sometimes it happens with a camera. They pose as customers and pretend to be taking general pictures,'' explains the dealer in handicrafts and jewellery. ''The next thing we know, they have duplicated the goods and are trading in them. They are edging us out of business. Soon we will have no customers.''
Kenya is a destination recommended to Chinese tourists. But Otok is one among many Kenyans who are not pleased with the Chinese presence. Unease seems to be rising as Chinese businesspeople become significant players and, in some cases, overtake Kenyan locals.
Her makeshift stall is located on the pavement of Prestige Plaza on Ngong Road in Nairobi. Every Saturday she sells batik products, handicrafts and jewellery here.
''Chinese goods are better quality and have a better finish because they use machines. We cannot afford the machines. Besides, they produce in large volumes and the goods are much cheaper. What can we do?'' she wonders out loud.
The Asian giant has been making inroads into African markets, including Kenya, and its influence has been growing year by year. Huge quantities of cheap Chinese products are available in Kenya. Attractive packaging and finishes are the hallmarks of these products.
At one Chinese-owned shop at Prestige Plaza, hand-woven bags hang neatly on hooks, packaged in bags. At a local supermarket in Nairobi, there is an assortment of Chinese-made toys.
''How can the government allow that we create ideas only for people to copy? And, worse still, when we want to import goods, we have to pay heavy taxes and duties,'' Otok points out.
But Peter Lumumba, a trader in batik products and soap stone carvings at the same venue, has resolved to make the best out of the situation. ''I buy beaded goods from the Chinese like bangles, dismantle them and blend them with my designs to give my products a better finish.
''The quality of my goods has become better. This way I am able to attract customers and stay in business,'' he says.
He wonders how the Chinese traders are able to show a profit given that their products are sold cheaply. ''For me to make a profit, I have to sell my bangles and earrings at 150 shillings (about 2,2 US dollars) each. Yet they sell a similar item even for as low as 50 shillings (about 0,75 dollars).''
Lumumba feels the Chinese traders are doing better because they are better ''networked''. ''They are in the big hotels and government supports them because they are from outside. The government does not support us as much,'' he notes.
For a number for handicraft traders in Nairobi's Biashara Street, it is business as usual. They say the influx of Chinese goods has not affected them.
Anne Wambui, a Nairobi resident, says she likes Chinese goods because they ''are unique and cheap''. Kiti Mwalimu hawks Chinese goods and says they sell quickly because of their affordable prices.
Rose Onyango, on the contrary, is not impressed. She once bought a wall clock from one of the hawkers in the morning and by noon it had stopped working. At supermarkets, plenty of Chinese electronic goods at modest prices are arranged on the shelves. Goods include kitchenware, wall clocks, watches, food containers, electricity-powered torches and shaving equipment.
Official figures indicate that trade between Kenya and China has been steadily rising since the two countries established diplomatic ties in 1963. In 2000, the volume of bilateral trade hit a record of over 136 million dollars, compared with about 26 million dollars in 1991.
From January to May 2001, the trade volume between the two countries reached over 55 million dollars, up 23 percent compared to the same period in 2000 with Kenyan exports to China jumping nearly 47 percent.
The volume of bilateral trade between the two countries reached 475 million dollars in 2005, an increase of nearly 30 per cent over the previous year, and Kenyan exports rose four percent to 17.6 million dollars. Trade between China and Kenya reached 650 million dollars last year.
Chinese export products include machinery, textiles, agricultural tools and consumable goods while Kenyan exports include fruit, scrap copper, cotton, hide and skin, coffee and tea. Kenya was ranked third among the 24 southern and eastern African countries that trade with China.
The two countries have signed a total of 12 bilateral accords over the past three years which have covered a variety of fields including the economy, technology, energy, tourism, health, aviation, the press, archaeology and education. In 2005, a Chinese company called Dong Song opened East Africa's first concrete pole factory, for 3 million dollars. It represents the biggest single investment by a Chinese company in Kenya.
Inter Press Service
''We are crying,'' laments Millicent Otok, as I take a seat next to her at her stall. ''Why are you crying?'' I enquire. ''They come and copy our items,'' she says, in reference to Chinese traders in the Kenyan market.
''Sometimes it happens with a camera. They pose as customers and pretend to be taking general pictures,'' explains the dealer in handicrafts and jewellery. ''The next thing we know, they have duplicated the goods and are trading in them. They are edging us out of business. Soon we will have no customers.''
Kenya is a destination recommended to Chinese tourists. But Otok is one among many Kenyans who are not pleased with the Chinese presence. Unease seems to be rising as Chinese businesspeople become significant players and, in some cases, overtake Kenyan locals.
Her makeshift stall is located on the pavement of Prestige Plaza on Ngong Road in Nairobi. Every Saturday she sells batik products, handicrafts and jewellery here.
''Chinese goods are better quality and have a better finish because they use machines. We cannot afford the machines. Besides, they produce in large volumes and the goods are much cheaper. What can we do?'' she wonders out loud.
The Asian giant has been making inroads into African markets, including Kenya, and its influence has been growing year by year. Huge quantities of cheap Chinese products are available in Kenya. Attractive packaging and finishes are the hallmarks of these products.
At one Chinese-owned shop at Prestige Plaza, hand-woven bags hang neatly on hooks, packaged in bags. At a local supermarket in Nairobi, there is an assortment of Chinese-made toys.
''How can the government allow that we create ideas only for people to copy? And, worse still, when we want to import goods, we have to pay heavy taxes and duties,'' Otok points out.
But Peter Lumumba, a trader in batik products and soap stone carvings at the same venue, has resolved to make the best out of the situation. ''I buy beaded goods from the Chinese like bangles, dismantle them and blend them with my designs to give my products a better finish.
''The quality of my goods has become better. This way I am able to attract customers and stay in business,'' he says.
He wonders how the Chinese traders are able to show a profit given that their products are sold cheaply. ''For me to make a profit, I have to sell my bangles and earrings at 150 shillings (about 2,2 US dollars) each. Yet they sell a similar item even for as low as 50 shillings (about 0,75 dollars).''
Lumumba feels the Chinese traders are doing better because they are better ''networked''. ''They are in the big hotels and government supports them because they are from outside. The government does not support us as much,'' he notes.
For a number for handicraft traders in Nairobi's Biashara Street, it is business as usual. They say the influx of Chinese goods has not affected them.
Anne Wambui, a Nairobi resident, says she likes Chinese goods because they ''are unique and cheap''. Kiti Mwalimu hawks Chinese goods and says they sell quickly because of their affordable prices.
Rose Onyango, on the contrary, is not impressed. She once bought a wall clock from one of the hawkers in the morning and by noon it had stopped working. At supermarkets, plenty of Chinese electronic goods at modest prices are arranged on the shelves. Goods include kitchenware, wall clocks, watches, food containers, electricity-powered torches and shaving equipment.
Official figures indicate that trade between Kenya and China has been steadily rising since the two countries established diplomatic ties in 1963. In 2000, the volume of bilateral trade hit a record of over 136 million dollars, compared with about 26 million dollars in 1991.
From January to May 2001, the trade volume between the two countries reached over 55 million dollars, up 23 percent compared to the same period in 2000 with Kenyan exports to China jumping nearly 47 percent.
The volume of bilateral trade between the two countries reached 475 million dollars in 2005, an increase of nearly 30 per cent over the previous year, and Kenyan exports rose four percent to 17.6 million dollars. Trade between China and Kenya reached 650 million dollars last year.
Chinese export products include machinery, textiles, agricultural tools and consumable goods while Kenyan exports include fruit, scrap copper, cotton, hide and skin, coffee and tea. Kenya was ranked third among the 24 southern and eastern African countries that trade with China.
The two countries have signed a total of 12 bilateral accords over the past three years which have covered a variety of fields including the economy, technology, energy, tourism, health, aviation, the press, archaeology and education. In 2005, a Chinese company called Dong Song opened East Africa's first concrete pole factory, for 3 million dollars. It represents the biggest single investment by a Chinese company in Kenya.
Inter Press Service