Sourcing from India: Look India
Just selling on any marketplace is a passive income source. With the right products, you can make your income active to overtake your passive income. You just need to have the right products on your shelf. Think how your customers will feel when they can see lots of products on your shelf, in different styles and tastes compared to your competitors….. WOW Amazing!
If you are sourcing your products online then you will find most of the products on those sites are common. Since they source from the same mechanized Chinese market. Further after the pandemic, sentiments have changed. Therefore the government in many countries discourages their buyers to import from the Chinese market. In that context, the best option is now to do Sourcing from India. This market is still unscathed and comparatively cheaper than the Chinese markets provided you have knowledge of where to shop.
Why from India?
India has emerged as a leading destination for product development. The reason, India has seen remarkable transformation and growth, with the advantages of a huge pool of skilled workers, improved infrastructure, compatible culture, and a customer-friendly regulatory environment, which all have made sourcing simpler and cheaper for companies worldwide. The stable economy, matured political system, a well-connected railway network, expanding roadway connectivity, and a vast coastline dotted with functioning seaports are another strong point for India to be an emergent business place for any companies. Probably the sourcing process in India is the simplest and cheapest among all countries in Asia. You can source every product and service, like computers, pharmaceuticals, leather, textile, electrical equipment, machine tools, chemicals, agroforestry products, and others from India. Many companies worldwide are now, therefore, started considering India as a viable option, to get their products manufactured or sourced from this country.
India has got every potential to achieve the Goal. What you are seeing today it’s just the beginning. The Government now has the serious political will to make India an “Emerging Giant“. The new initiatives, such as Make in India, Atmanirbhar Bharat, Swachh Bharat, Smart cities, and skill development for the youth, be used to unleash the country’s vast potential.
Do you need a Sourcing Partner in India?
Sourcing from any cross-border market has many disadvantages, like a wrong identification of vendors, unable to get competitive pricing, cumbersome documentation, etc. To avoid these, you need a trusted Sourcing Partner in that country. The Sourcing Partner can help you in the reduction of your business risk, substantially. Moreover, since the Sourcing Partners also become responsible for quality and delivery, hence you can save lots of time and travel costs for every small reason.
To achieve procurement excellence in India, you need to deploy the western style procurement practices in this country too, which are very much adapted to the local context and culture. Therefore, you need a strong team of professionals in the West as well as in India, integrated functionally. Cohere understands the culture well, and hence can be your most trusted Sourcing Partner in India.
Top 10 Reasons for Companies to Source their Products from India: Advantage India
India is an emerging giant. The way India handled the pandemic situation, shows its political will and robust economy. The exports from India to the West have also grown manifold over the years. India now has become a leading exporter of leather, apparel, textiles, spices, gems, tea, chemicals, marine products, pharmaceuticals, rice, home products, etc.
Commercial Aspects-
- Craft or Artisanal products:
- Man and machine have many differences. A machine can produce in volume much faster than a man, but it loses its uniqueness. China certainly has mastery in this. But in India, skilled artisans make their products either by hand or using minor tools traditionally. Products they made in small batches, and reflect high-quality craftmanship with the highest precision. Such products are premium products that use natural materials and stand notches above machine-made products.
- Low MOQ: The Chinese manufacturers demand a high Minimum Order Quantity (MOQ) for orders placed. This is somehow their obligation to justify mass production in a factory where per unit costs are competitive over large numbers. Whereas handcrafted products are made in small batches, hence the MOQ for such products is less. Moreover, Low MOQ means low investment. Ultimately it saves the cost of funds. Also, there is a risk of carrying huge inventory, particularly in any fashion and technology segment for which becoming obsolete is the normal trend.
- Niche & eco-friendly products:
- India is a place of natural treasures.
- India is a place of natural treasures. The different types of eco-friendly and organic raw materials are abundantly available in India as natural resources. Various products are made from these raw materials. As an alternative, if anyone wants to buy plant-based leather instead of real leather, India will be the best. Similarly for biodegradable disposable dinnerware instead of plastic dinnerware, he will get it here.
- Tariffs: Thanks to the Healthy International relationship between India and many countries, that becomes advantageous to import from India with fewer tariffs.
Political & Legal Aspects-
- IP protection: China is known to produce ‘Me Too’ products which are very similar to designs of popular Western brands. Hence, there is always a threat to get infringing on any designs and technology on intellectual property. But in India, business is done more ethically. Hence India is a safer option. Moreover, for Copyright and Trademark infringement Indian laws are very strict.
- Government initiative: The government of India has introduced ‘Make-in-India’, ‘Atmanirbhar Bharat’, ‘Stand Up India’, Start-up India’, ‘Swach Bharat’, and many other initiatives to support manufacturing. Government-guaranteed Collateral Free loans to MSME are bringing pandemic-affected Indian businesses back on track. The overall business and economic climate are very positive to support indigenous products and design innovation.
- Big Market, Open Economy: India is the Seventh Largest country in the World, the Second-largest country entirely in Asia, and the largest country in South Asia. Population wise India is behind China and is the second most populous country in the world. The UN in their report “The World Population Prospects 2022”, dated. 11th July 2022, said that India is projected to surpass China as the world’s most populous country next year. According to the report, India’s population will become 1.668 billion in 2050, way ahead of China’s 1.317 billion. By then, India is estimated to have the largest population in the world. Then it will become representative of 1/3 of the Asian population and 17% of the world population. The country’s sheer size (with low labor costs), economic weight, and stable political system explain the level of attention from potential investors and corporates who want to expand their business in the global market.
Socio-Economic Aspects-
- English Language advantage: In India, the people widely speak English. This is the language that is common in all the states of India and is the default language for business. Hence, dealings in India are much more convenient than in China.
- Social Media Platform, get in touch with your Network: In India, most social media platforms, like Facebook, Twitter, WhatsApp, and others are common in the western world. This facilitates the advantage of keeping an active presence in your industry and staying up-to-date on industry trends. Whereas in China, they have different platforms for their country. They developed it indigenously and hardly have any Global acceptance by common users.
- Welcoming Nature: Culturally, Indians are more receptive to Western ideas and culture than the Chinese. For ages, Indians consider their Guests as their God. The notion “Atithi Devo Bhava” indicates that we must consider our Guests equivalent
COHERE: your Sourcing Partner in INDIA
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