abhishreshthaa
Abhijeet S
BIRD’S EYE VIEW OF MANUFACTURING SECTORS OF CHINA AND INDIA
China’s emphasis on manufacturing is confirmed by the fact that among the three sectors in China, manufacturing takes the largest slice of the pie, while in India, it is third behind services and agriculture.
Apart from this, the Chinese are so competitive on a global basis that most nations, including India, find them as a force to reckon with in textiles, consumer durables, and so on. An essential offshoot of this is the huge trade surplus China enjoys. Its exports race ahead despite global slow down and its foreign investment figures are much higher than India
Most people associate China's economy with over investment in singular and unprofitable pursuit of export products, low quality goods and marginal pricing. The truth is that China's growth is the result of not only significant investment, foreign and domestic, but by a sharp increase in labour productivity, a growing export based on foreign investment, strong domestic demand fed by low prices and improved quality of products. The price competitiveness of China's products is unmatched.
China's businesses seem to operate on the principle of sales maximization. The strategy of sales maximization calls for setting of prices at very low levels so as to create markets.
The focus being maximization of sales the resultant business model necessitated concentration on such products that are amenable to mass production and mass consumption. With pricing set at rates unimaginable to competitors abroad, the product offers tremendous value for money.
That must explain why Nike produces 40% of its footwear in China while Galanz has 30% of the global market for microwave ovens because of quality enhancements in Chinese factories.
China’s emphasis on manufacturing is confirmed by the fact that among the three sectors in China, manufacturing takes the largest slice of the pie, while in India, it is third behind services and agriculture.
Apart from this, the Chinese are so competitive on a global basis that most nations, including India, find them as a force to reckon with in textiles, consumer durables, and so on. An essential offshoot of this is the huge trade surplus China enjoys. Its exports race ahead despite global slow down and its foreign investment figures are much higher than India
Most people associate China's economy with over investment in singular and unprofitable pursuit of export products, low quality goods and marginal pricing. The truth is that China's growth is the result of not only significant investment, foreign and domestic, but by a sharp increase in labour productivity, a growing export based on foreign investment, strong domestic demand fed by low prices and improved quality of products. The price competitiveness of China's products is unmatched.
China's businesses seem to operate on the principle of sales maximization. The strategy of sales maximization calls for setting of prices at very low levels so as to create markets.
The focus being maximization of sales the resultant business model necessitated concentration on such products that are amenable to mass production and mass consumption. With pricing set at rates unimaginable to competitors abroad, the product offers tremendous value for money.
That must explain why Nike produces 40% of its footwear in China while Galanz has 30% of the global market for microwave ovens because of quality enhancements in Chinese factories.