Quality speaks louder than adverts

In the last quarter of 2023 and the early months of 2024, Pakistan witnessed a noticeable surge in local brands stepping into the spotlight. While these brands have long existed, they gained momentum amid global calls for boycotts of certain international brands. Following the events of October 2023, a wave of country-wide advertising campaigns flooded TV screens, mobile devices, and billboards, all promoting the “Made in Pakistan” narrative. Many local brands jumped onto this bandwagon, leveraging patriotism and national pride. However, the question remains: was this consumer shift sustainable, or merely a temporary response to global events?

China, often dubbed “The World’s Factory,” provides a compelling case study for Pakistan. China’s domestic production dominance didn’t happen overnight—it took decades of strategic planning, industrial diversification, and policy measures such as “Made in China 2025,” which aimed to reduce reliance on imports. China’s vast supply chains and economies of scale allow it to produce affordable, high-quality goods domestically. Pakistan, if it seeks a similar trajectory, needs to develop a diversified industrial base, invest in policies that favor local production, and ensure that its goods meet international quality standards.

Becoming self-sufficient as a country requires more than emotional campaigns—it demands a holistic approach. Policies supporting industrialization, subsidies, and incentives for manufacturers, coupled with a consumer base that chooses local products out of genuine preference, are key. Additionally, strong infrastructure, efficient supply chains, and state-driven commitment are crucial for achieving long-term self-reliance.

The last quarter of 2023 saw a significant shift in consumer preferences toward local products. However, was this shift driven by a desire to support the local economy, or was it just fueled by emotional fervor? While some Pakistanis embraced local goods enthusiastically, the sustainability of this movement is now in question. Many international brands are gradually reclaiming their market share due to product availability, quality, and consistency, which some local companies struggle to match.

A shopkeeper in Khyber Pakhtunkhwa highlighted the supply chain issues plaguing some local brands, “We don’t have their stocks available because they cannot fulfill our order requirements. Upon ordering 12 packs of 1.5L bottles, we faced delays and received only one pack.” Another shopkeeper in Faisalabad shared a similar story regarding quality: “A consumer returned a local detergent two days after purchase because it affected her skin. I had to refund her money.”

While some local brands have demonstrated promise, they continue to face challenges in product safety, supply chain management, and building consumer trust. Since this movement was observed in October 2023, a re-shift toward international products has been observed. Though some consumers remain emotionally driven to avoid foreign brands, affordability concerns have also pushed many toward regional or local alternatives.

While experts had already questioned the quality of local products, many mid-tier shops were seen stocking shelves with items from lesser-known regional brands. These products, often from small, unheard-of enterprises, featured unfamiliar names and were sold at extremely low prices—cheaper than both international and established local brands. This raised concerns about whether these were even registered brands and if they adhered to the necessary quality standards and certifications. Within the FMCG category, beyond toiletries and detergents, these regional offerings included edible products like cooking oils, tea, and dairy—prompting consumers to question potential health risks. A shopkeeper in Punjab noted that these brands were offering significant trade discounts, encouraging retailers to push these products to consumers.

International brands, however, have long maintained a strong foothold in Pakistan. These companies not only offer quality products but also contribute to Pakistan’s socio-economic development through corporate social responsibility (CSR) initiatives. For instance, Lipton, an entity turned independent in 2022, has funded two TCF schools in Khanewal and provided healthcare services to 10,000 women in rural Sindh and Balochistan through a partnership with the Patient’s Aid Foundation. Similarly, Nestlé Pakistan has installed water filtration facilities around its factories, providing clean drinking water to local communities, and runs a nutrition education program for children. Unilever Pakistan is bridging the gender gap for women in rural areas by opening doors to economic empowerment through its GuddiBaji livelihoods program.

According to the Overseas Investors Chamber of Commerce and Industry (OICCI), its members contributed $10.2 billion in taxes in 2022, representing over a third of Pakistan’s total tax collection. Moreover, these companies collectively spent Rs13 billion on CSR activities in 2023, benefiting over 40 million people.

Many international products sold in Pakistan are now manufactured locally, adhering to national laws and contributing to the economy. Apart from fulfilling the necessary regulations for quality protocols, these companies are proving their commitment to Pakistan’s development, creating jobs, paying taxes, and contributing to social welfare.

For Pakistan’s local brands to truly compete, they must focus on improving quality, building robust supply chains, and gaining consumer trust. The shift away from international products cannot be sustained on emotional or nationalistic grounds alone—it requires long-term investments, innovation, and a commitment to delivering products that meet both local and global standards.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Pakistan and China forge defence equipment agreements at IDEAS 2024

Several international companies have participated in signing agreements and memorandums of understanding