Product manufacturing: China vs. India
Author: lovechina

Product manufacturing: China vs. India
Why some manufacturers are reluctant to set up in India ?

It's this can-do, global-reaching Chinese mindset that has a lot to do with China's ability to constantly take a big-picture view on things and identify how all of the dots connect. Similarly, this is nothing short of understanding how a sophisticated supply chain distribution model might be carefully set up to ensure chances of success.

India, China supply chain distribution challenges

For both Indian and Chinese distribution systems, locally made components can only meet a small percentage of domestic demand. The majority of components must still be imported. The problem with this is that many electronics manufacturing companies in these countries don't understand the advanced technology of foreign components.

This is where it is key that good distributors are available to provide technical support and service. Unfortunately, the intellectual property (IP) that makes up and provides the foundation for this technical support and technology understanding that some larger, foreign distributors incorporate into their software systems is quite valuable and differentiates them from one another. One can understand why, in countries where IP and software theft is common, there is good reason to hesitate.

Although China is considerably further along the development phase of implementing a robust electronics hardware manufacturing market and distribution supply chain, ultimately, both countries will likely face the eventual small-to-mid-size players being forced to merge or shut down. What will then likely follow will be some of the regional, larger distributors becoming attractive buy-out candidates by larger MNC distributors.

As for India, one of the more remarkable aspects of the large sub-continent many may not realize has nothing to do with the country's printed circuit board assembly or electronics hardware capabilities but rather its religious base: peaceful coexistence of Hinduism and Islam. A strict and conservative form of monotheism next to a rich and varied polytheism.

Read the full article on VentureOutsource.com, here" and hyperlink this text to our content on our Website URL, below:

http://www.ventureoutsource.com/contract-manufacturing/outsourcing-offshoring/china-manufacturing/product-manufacturing-china-vs-india

 

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