AFFECTS OF CHINESE

PRODUCTS ON PAKISTANI
ECONOMY

A Project of Marketing Research

Presented to Mr. Babak Mehmood
PROJECT PREPARED BY:

• NASEER AHMAD KHAN 2E021

• AZFAR KHAN 2E022
• NAVEED CHIRAGH 2E038

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 INTRODUCTION

The Chinese products have grate acceptance

here in Pakistan. These products hold a
large market share. Their increasing market
share is really a threat for Pakistani
manufactures.

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 PROBLEM STATEMENT

“The sales volume of Pakistani products

is not picking up. Firms say it is
happening due to availability of
Chinese products in the market at low
prices.”

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 UNIVERSE

A very vast body of knowledge is available

on this issue of affects of Chinese products
on Pakistan economy. Different websites,
magazines, newspapers, articles etc show
that the imports of Chinese products are
getting high percentage in Pakistan since
early 1980s.

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FORMATION OF HYPOTHESIS

• The quality of products at reasonable

prices really attracts the customers.
• Government trade policies with China are
affecting the economy
• Indirect factors like role of politics,
science & technology are affecting our
economy

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 OBJECTIVES OF THE STUDY
• To understand and explain the causes of
increasing market share of Chinese products and
Pakistan economy.
• To suggest the best possible ways to Pakistani
manufactures to compete with Chinese products.
• To study the present as well as future affects of
Chinese products in Pakistan economy.

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• To understand that how other indirect
variables affecting the economy.
• To understand that why Chinese products
are getting much acceptance in Pakistan
economy.

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 DATA COLLECTION
TECHNIQUE

We will collect date in three phases

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Phase 1
• In this phase we develop questionnaire for
getting consumer feedback about products
of different countries.
Phase 2
• In this phase we test the affects of indirect
variables that are affecting the Pakistan
economy.
Phase 3
• This phase is related to Pakistan’s trade
policy with other countries.
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 PRELIMINARY DATA
COLLECTION
BACKGROUND INFORMATION
Pakistan’s imports from China have been
increasing since early 1980s and this is
certainly beneficial for the country, as
Pakistan has to pay less for imports from
China as compared to the imports from the
developed countries for the same type of
commodities/machinery
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Pakistan's Import/Exports with China
Year Imports Exports
1980– 1990(avg) 3.30% 2.70%
1990–2000(avg) 4.60% 1.10%
2003-2004(avg) 7.40% 2.30%

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 PERCEPTIONS AND ATTITUDES
OF PAKISTANI PEOPLE
• From 1950 to 1992, Pakistan grew by 700%,
ranking it the 27th fastest growing economy in the
world. Even after a slowdown due to domestic
political turnover and international economic
sections following nuclear weapons testing. Only
30% of Pakistan's 175 million populations would
be considered economically "comfortable" by
Western standards,

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 but even that puts the number of Pakistani
middle-class consumers with good
purchasing power at a sizable 52 million.
• Pakistan’s manufacturers wants to know
that how “Made in” label effect the
consumer’s buying behaviors, when
compare with other imported products.

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 PROBLEM DEFINITION
We feel that only availability of Chinese products is
not responsible for our declining sales.
• Consumer’s behavior about “Made in” label along
with some variables like quality, value of product,
image etc.
• Our other indirect factors like role of politics,
science and technology, private sector, leaderships
and institutions etc.
• Government’s trade policies with China or overall

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 RESEARCH DESIGN
Our research design is consists of three phases.
• Phase I
• Make questionnaire for testing consumer’s
perceptions about “Made in” label. In the
questionnaire we have four variables that are
Quality, Value, Image and Promotion.
• After the analysis of data we will make a brief
summary of Phase I.

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• Phase II
• During the data collection we will also observe
some other variables like;
• Work ethics, Discipline, Trust, Savings,
Investments in human development, Labor force
quality, Openness of the economy, Tax culture,
Role of Government, Science and Technology,
Private sector, Leadership and institutions and
Regional integration.
• After getting snap shot of all above factors we will
make another summary which represent phase II

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• Phase III
In this phase we will conduct research
about Pakistan’s trade policy with other
countries. The research on this phase is still
continue.

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 PHASE I

RESEARCH QUESTIONS
1. How do Pakistani consumers rank products
from the Japan, China, South Korea,
Pakistan and other countries in terms of
perceived quality, value, image, and
promotion?

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2. How are Pakistani consumers' general
attitudes toward those countries (in terms of
economic, educational, and technological
factors) reflected in the evaluation of
products from these countries?

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 SAMPLING FRAME

The sampling frame for the study comprised

business students at four premier colleges in
the city.

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Distributed copies of questionnaire………350
Useable responses received
Males(66%)………………………………119
Females(34%)……………………………61
Total……………………………………180
Average age of the respondents…………23

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Competitive Position of Countries along
Various Product-Related Dimensions

Country Quality

Japan 1

Korea 2

China 3
Pakistan 4

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Competitive Position of Countries along
Various Product-Related Dimensions

Country Value

Japan 1

Korea 1

China 2
2
Pakistan
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Competitive Position of Countries along
Various Product-Related Dimensions

Country Image

Japan 1

Korea 2

China 3
4
Pakistan
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Competitive Position of Countries along
Various Product-Related Dimensions

Country Promotion

Japan 1

Korea 2

China 4
3
Pakistan
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 Competitive Position of Countries along
Various Product-Related Dimensions
Country Rank along Dimension
  Quality Value Image Promotion
Japan 1 1 1 1
Korea 2 1 2 2
China 3 2 3 4
Pakistan 4 2 4 3

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 SUMMARY OF PHASE I

• Pakistani consumers seem to have a more

favorable attitude toward imported products
compared to domestic products along most
dimensions.

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• The feel from data indicated that products
from more developed countries were
evaluated more positively by consumers
than products from less-developed
countries.

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• Pakistani manufacturers should increase the
intensity of promotion in their own
domestic market, and that may eventually
result in an enhanced image for
domestically made products.

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 PHASE II

• This phase is consist of indirect variables

those are affecting the Pakistan’s Economy.

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WORK ETHIC; DISCIPLINE; TRUST

Pakistani people is lacking behind in the

Ethics, they mostly concentrate on
litigation issues instead of working on
creative, technological aspects. They do
not show a good discipline and a high
degree of trust on their workplace.

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 SAVINGS

Pakistan has the lowest domestic

saving 16-18 percent while other Asian
countries have 30-40 percent domestic
savings.

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 INVESTMENT IN HUMAN
DEVELOPMENT
Pakistan has 3.4 average schooling while
other Asian countries like Korea have 9.6
average of schooling, Malaysia has 6.3 and
Singapore has 6.0 average of schooling. So
Pakistan has low schooling average rate.

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 LABOR FORCE QUALITY

Pakistan considers training expenses as

additional costs and not investment. While
other Asian countries not only hire educated
and literate workers but provide continuous
training to these workers in acquiring new
knowledge, techniques of production or
improvement in processing.

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 TAX CULTURE

Pakistan has a common tendency to avoid

taxes by concealing incomes. Presently,
there were only 1.1 million tax payers in a
population of 150 million people while
other Asian countries has high tax
compliance by the population and low
incidence of tax escaping.

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ROLE OF THE GOVERNMENT

Unfortunately, Pakistan has been changing

our policies, programs and priorities every
two to three years. So if there is not any
permanent government for longer period
than every new government can not play a
vital role in the growth of Pakistan
economy.

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SCIENCE AND TECHNOLOGY

In Pakistan, we started extremely well and

our educational institutions were turning out
scientists and engineers of high caliber in
the 1960s but then we neglected these fields
to the serious loss to our economic progress.

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 PRIVATE SECTOR

Pakistani scene after the 1970s has been

riddled with inefficient and highly
bureaucratic public enterprises who were
subtracting rather than adding value and
causing enormous losses.

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 LEADERSHIP AND
INSTITUTIONS
Pakistan is lacking behind in strong
leadership. In the absence of strong
leadership or strong institutions, the
difficulties are compounded and the time
taken to reach the goal post is elongated.

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 CONCLUSION

• Pakistani consumers seem to have a more

favorable attitude toward imported products
compared to domestic products.

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• Chinese products are not as much
influences our economy as people feel it.
Because Pakistan’s imports figure is $11
Billion. And from China our imports is
$726 Millions, that is only round about 7%
of the total imports

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• Now the question is “Why we feel china
influence us?” The answer is 58% of our
imports acquire by our “Oil and Textile
machinery”. So it means our manufacturing
cost is very high. And when we go for
competition in the Global market we face
lot of problems in pricing.

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• Pakistan should also review its import
policies to support domestic market.
Government should increase its custom
duties on imports of finished goods from
other countries.

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