What India’s Industrialist Must Learn from China

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 better product with cheaper price. This article gives an insight of how Chinese industry is bigger and more competitive to India: 

  1. Technology – The technology is backbone for any country. Companies in China give so much importance to technology. Lot of investment is made to improvise the technology for exiting business so that productivity and quality is 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 machineries or tools. In most cases across many industries this keeps companies dependent on other overseas companies.

 

  1. Innovations – Not sure if you have an idea how many patent is filed in India every year and how many it is for China or other developed countries. The difference is huge, its 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 have created a gap which makes industry in-competitive and less cost effective in the International business. On the other hand countries like China win the race.

 

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

 

  1. Efficiency – 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 are manufactured. The Indian companies must do comparative analysis and make necessary changes to achieve higher efficiency.

 

  1. 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 price comparing to other countries including India.

 

  1. Selling globally – China not only exports their products to many countries but they also reach the world market by setting up retail stores for selling their own products. This gives big advantage related to profit margins and bigger sales volume both.

 

  1. 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 alternative to Chinese company Indian companies need to focus on above points. 

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

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