FP ExplainersApr 21, 2022 15:49:29 IST
China currently dominates the market of protective accessories, especially screen protectors and tempered glass. According to a report by the India Cellular & Electronics Association, by the year 2025, China will be export ing about 550 million units of screen protectors, at an estimated value of $3.4 Billion dollars, just to India alone.
Currently, India is the largest market for screen protectors that are manufactured in China. Because India has no established players in the manufacturing and supply of these high volume screen protectors, we are losing out on a lot.
The report suggests that the screen protectors and tempered glass should be brought under the CRO (Compulsory Registration Order) so that we get a proper standardisation of the product. This in turn will mean that India can start manufacturing these goods in the organised sector, something that we did for the accessories market, like third-party chargers, wearables and audio accessories.
Currently, the screen protector market is estimated to be worth $43 Billion, with China having the largest share followed by countries like Thailand, Indonesia and Taiwan. It is estimated that China manufactures and exports about 90 per cent of all screen protectors used worldwide.
The reason why China has been able to get such a stronghold over the manufacturing and distribution of tempered glass is that this sector is primarily led by their SME & MSME segment, which is somewhat subsidised by their government. Not only does the Chinese government allow easier loans to be sanctioned for small workshops and factories to be set up, but they also subsidise some of the costs of the raw inputs, mainly electricity.
Given how MSMEs and SMEs have been pushed by the Indian government, it will be a great chance for India to step up and grab a substantial share in the global market.
Once a standard for tempered glass and screen protectors is set in place, a formal, legal and quality-oriented market can be created with great ease, which in turn will enable the local suppliers to sell through proper channels and formalise the entire supply chain.
This will also lead to 75,000 or so new jobs being created, directly or indirectly.