By Bernard Wasike
The recent entry of a Chinese enterprise selling a wide range of consumer goods was greeted with excitement which has seemingly worn off.
For almost a decade, the hypermarket space at the purpose-built Kenyatta University’s Unicity Mall had failed to attract a credible tenant. Then China Square Limited, which trades as China Mall, appeared.
The firm, owned by a youthful Chinese investor Mr Lei Cheng earlier this year, enjoyed massive social media hype and consumer attention as bargain-hunting shoppers flocked to the hypermarket.
Kenyan consumer goods importers primarily based along Kamukunji and Gikomba areas were all up in arms, alleging that the firm was undercutting them. The uproar, further fueled by the support of the Ministry of Investments Trade and Industry Cabinet Secretary Moses Kuria, was so loud that it ended up at Deputy President Rigathi Gachagua’s door.
The Anti-Counterfeit Authority (ACA) quickly jumped on the bandwagon, confiscating allegedly substandard stocks at the store. In a classical Murphy’s law development, the store was swiftly forced to close its doors, albeit for a few days, as anything that could go wrong kept going wrong.
As an Economist, the China Square story was very intriguing, and I kept telling myself that I had to visit Unicity Mall and experience the retailer’s magic. From social media and mainstream media posts, it was clear that this retailer had disrupted the local retail space by a good measure if the hype was anything to go by.
However, during a recent visit just last weekend, I was taken aback by the fewer crowds milling around the mall, indicating that the China Square hype was much ado about nothing to borrow from William Shakespeare.
Based on earlier reports, I’d loaded my M-PESA line, ready to grab the bargains for a wide range of goods. My mind was high on that impulse buying hormone that gets triggered when browsing social media pages.
To my disappointment, China Mall is not what it has been billed to be, and I couldn’t agree more with our local traders that the folks at China Square are hurting our economy.
First, the shopping ambience is nothing to write home about as the store needs to be better arranged and stocked. This is based on experience from similar reputable stores locally and abroad.
Perhaps due to the poor retail layout, customers will be found almost wandering from one section to another, disappointed at the range of outright poor-quality products. In my view, these products are not selling at a bargain price compared to reputable brands at your favourite shopping spot, away from China Square.
The poor store layout-with an added mezzanine floor that also appears shaky- provides a very stuffy shopping experience due to limited ventilation points.
From an Economist’s perspective, I was taken aback that the Kenya government has opened the floodgates for what we call dumping. According to Investopedia, Dumping is a term used in the context of international trade. It’s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter’s domestic market. Because dumping typically involves substantial export volumes of a product, it often endangers the financial viability of the product’s manufacturer or producer in the importing nation.
I am all for protecting investor interests, but I also hold that we must maintain some good manners and accord our people some dignity. Most of the products on offer at China Square could be better quality-wise, and I wonder how they even passed the stringent pre-shipment inspection tests.
Our agencies must act responsibly and patriotically to avoid eroding local entrepreneurial opportunities with evident negative economic impact. I believe that China Square can afford to import quality, affordably priced goods.
Mr Wasike is a consulting economist and development policy analyst.
