Chinese stores invade Cuernavaca

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  In the Center there are dozens that leave local businesses with losses of up to 70%

The Chinese market has seen Cuernavaca as an opportunity to increase the sale of its products. Just in the central area of the state capital there are a dozen stores that offer everything from beauty items, stationery, jewelry and even electronic devices.

And although they represent a source of jobs for many Morelos residents, local commerce registers losses of up to 70 percent.

The success of these stores lies mainly in the low costs for consumers, which can be 30 percent lower than local businesses, although the guarantee is sometimes null or there are very few days to make changes or returns.

On the outskirts of the center of Cuernavaca there are at least two stores that, due to their magnitude, receive hundreds of customers daily, they even make long lanes to enter and purchase an item; In them, wholesale costs are usually lower.

Bao Ronglin, president of the Yangtze River Chamber of Commerce and general director of Grupo Oriental y Bicicletas México (Bimex), warned that the presence of Chinese businesses will increase in the state; “There are more and more of us, in reality there is a lack. We are working on that”.

Unfair competition

And although the low prices of these stores attract customers, local businessmen and merchants assure that it is a very strong competition, because before these stores were established in the state, they sold Chinese products, although the costs were higher because they had to travel to the country’s capital to purchase them and then resell them in the state.

For the community of New Internet Business Entrepreneurs (Nenis) Morelos, this type of business represents unfair competition for those who make crafts, since these stores offer similar products at much cheaper costs.

“Entrepreneurs have this concern with the opening of Chinese stores, and it is important that the balance is maintained, we know that this generates economic growth, but it would be good to preserve our commercial identity,” says Austria Vique, leader of the Nenis in Morelos.

She assures that they have observed how customers prefer price over quality, leaving entrepreneurs who sell accessories, jewelry, food containers and other products out of the consumer’s interest, as they cannot compete with the costs of Chinese stores.

Mario Lara, merchant leader, agrees with Austria Vique. He assures that the presence of these stores is so big that the chances of customers reaching the local business are minimal; “They come to generate a climate of unfair competition. In fact, they bring many products, but many are of very poor quality.”

He assures that since Morelos is very close to Mexico City, it becomes an ideal territory for the Chinese; In addition, having an airport makes it more attractive.

Price over quality?

These stores offer products at very low cost, but the guarantee is sometimes void; That is, once the merchandise leaves the store, there are no exchanges or returns.

El Sol de Cuernavaca took a tour of some stores to ask about the guarantee of the products, in case of future problems or non-conformities. The staff stated that once the merchandise is shipped there is nothing to do, so the recommendation to the customer is to check the product very carefully before paying for it, while in another establishment only electronic devices have a 4-day guarantee by presenting the purchase receipt.

Source: El Sol de Cuernavaca