Export and Import

What Indian Industrialists Must Learn from China

Pankaj
192 Comments

International business is all about competition and reaching customers. For any business, there is already a known or unknown competitor who is capable of offering a better product at a cheaper price. In order to be competitive in the international market 3-dimensional strategies can play a vital role. What Indian industrialists must learn from China can be a game-changer.

 

1. Technology

Technology is the backbone of the economy of any country. Companies in China give so much importance to technology. A lot of investment is made to improvise the technology for exiting business so that productivity and quality are higher whereas cost is reduced. Frankly speaking, this is part of the business operations. On the other hand, while lots of companies in India are technically advanced many companies do not like to spend on R&D to develop advanced machinery or tools. In most cases across many industries, this keeps companies dependent on other overseas companies.

 

2. Innovations 

Not sure if you have an idea how many patents are filed in India every year and how many it is for China or other developed countries. The difference is huge, it’s unbelievable. Indian brains have much better to do but not sure whether awareness or encouragement is lacking to do good in this area. Not having many inventions for industries has created a gap that makes industry in-competitive and less cost-effective in the International business. On the other hand countries like China win the race.

 

3. Diversity

China has big a range of products across many industries and big volumes are exported across the world. In comparison, India has a much lesser range of products manufactured and exported to other countries. Having a big volume and diversity gives China an advantage to increase revenue and GDP.

 

4. Efficiency

The main focus for manufacturing companies in China is to achieve higher efficiency. This way they easily beat Indian companies as with higher efficiency cheaper products is manufactured. The Indian companies must do comparative analysis and make necessary changes to achieve higher efficiency.

 

5. Competitive costs

Chinese products are usually cheaper. As mentioned above due to upgraded technology, higher efficiency, and big volume industries in China are able to produce products at much cheaper prices compared to other countries including India.

 

6. Selling globally

China does not only export its products to many countries but also reaches the world’s market by setting up retail stores for selling their own products. This gives a big advantage related to profit margins and bigger sales volume both.

 

7. Global Expansions

Chinese industrialists invest globally to open manufacturing plants and business units. This helps them to take local advantages and strengthen their businesses.

Hence, to be competitive and be an alternative to Chinese company Indian companies need to focus on the above points. 

Hope this article is helpful to you. Please write us feedback and suggestions in the below comment section. 

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