With lot of Chinese gadget companies setting up manufacturing facilities in India, it is surely bound to cause ripples within the Indian manufacturing fraternity. Here we discuss the possible fallout.
While #boycottchinaproducts has in recent days been a populist belief in India, a major market chunk of technology here, especially smartphones, is still dominated by Chinese products. Chinese companies are acquiring, or venturing with, Indian mobile manufactories to benefit from Make In India and giving native companies a tough fight.
India has become the second most favourable destination for Chinese mobile manufacturers. Since the beginning of an economic slowdown and saturation in their domestic market in 2013, Chinese mobile companies have been eyeing international turfs. Chinese consumers, now, have sophisticated and complex demands while costs and wages are on a rise. Meanwhile, the Indian mobile industry is foreseen to become the second biggest by 2017 with sales of a projected 174 million units.
India is easily penetrable as both Indian and Chinese markets have similar structures. Being a FreeMarket, distribution in India is easy and the boom of e-commerce has allowed big players like Lenovo and Xaiomi to cement their position here. Additionally, India & China share same 1800MHz & 2300MHz 4G frequency bands, which means any Chinese 4G enabled phone is supported in India, too. Cheap 4G phones have allowed the Chinese to put their feet down in the Indian market.
This story is from the December 2016 edition of PCQuest.
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This story is from the December 2016 edition of PCQuest.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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