What are the main "Business-Cultural" differences in Indian and Chinese Markets?

Please provide your answers in points form.

Quoting from [Taal]:

What are the main "Business-Cultural" differences in Indian and Chinese Markets?

Please provide your answers in points form.

I say China and India are at different levels, and many Indians don't understand.


In any Chinese cities, no slum exists, also no large scale begger problems. In China, food and clothing, minimum housing are no longer problems for anybody, but India still has the that problems.


Color TV, refrigators, air-conditioner, computer, motorcycle, cell phones..., these items any Chinese can afford to buy, even the poorest man. The color TV sold in America, though very cheap already, still doubles its price in China, and usually one generation behind Chinese market. Every Chinese family has a fixed line phone already, not mentioning cell phones, which are the must even for garbage collectors and beggers. Car is no longer a luxuries stuff any more, most of people can afford, the brand new domestic made car is sold for less than 5K usd. For many Indians, those are still dreams.


For mordern Chinese, the current social, economic problem are:


Soaring Housing price in the cities. Not the house just with water, electricity and sewage, but the decent ones like western style fancy apartment. Every body wants it so really drive the price up, due to the land resource constrains.


College tuation fees. In 15 years, Chinese college/university enroll number goes from 1 million to 5 millions, and marching toward 10 millions now. College education in China is no longer something only elite can afford. But the tuation fee is really shooting up as well, since graduate eduation is commercialized. Many people complain becasue bulk of their income increase has to be redirected to there, they are not happy.


Pension/medicare. Due to the old security system are abandoned in China, but the new one hasn't been set up. A big imbalance exists. For some sectors they are extremely well off, but for others they dont even exist. The people are not happy since they think it's unfair.


So the biggest problems for Chinese are housing(not a place to live), education, pension and medicare. These are the industrial society problem China just starts to experience, but many Indians haven't just realized.


The two societies are at different levels.

Quoting from [kashifismail]:

The question is what are the main business cultural differences and not what differences in lifestyles and standards of living between China and India.


I am doing business with both India and China as a third person, and as to my personal experience, India is divided into pre-Singh, and post-Singh era, and China is divided into pre-Xiao Peng and post Xiao peng era.


As to my opinion, there is much opportunities in the Indian market, and there is better security in the long term to deal with India comparing with China.


In the matter of trusts, both countries do business by zero level trust, and all purchases have to be paid in advance, preferred to be by telegraphic transfer of funds. However there is a little more grace and trust on the Indian side, after some time of business transactions, but you would not be expected to have the leverage of exclusive agency for too long, the Indians will be moving in and set up their branch office overseas if the sales is good and after the distributor established the market for the product, the Chinese are not so able to do this cross-border movements, they are only interested in the short-term returns. They are only interested in the sales and pre-payment of funds even before they start production (mostly the products are not made by them, they also purchase them from other manufacturers and put their brands on the goods).


Street

Quoting from [Street Smart]:

Quoting from [kashifismail]:

The question is what are the main business cultural differences and not what differences in lifestyles and standards of living between China and India.



I am doing business with both India and China as a third person, and as to my personal experience, India is divided into pre-Singh, and post-Singh era, and China is divided into pre-Xiao Peng and post Xiao peng era.



As to my opinion, there is much opportunities in the Indian market, and there is better security in the long term to deal with India comparing with China.



In the matter of trusts, both countries do business by zero level trust, and all purchases have to be paid in advance, preferred to be by telegraphic transfer of funds. However there is a little more grace and trust on the Indian side, after some time of business transactions, but you would not be expected to have the leverage of exclusive agency for too long, the Indians will be moving in and set up their branch office overseas if the sales is good and after the distributor established the market for the product, the Chinese are not so able to do this cross-border movements, they are only interested in the short-term returns. They are only interested in the sales and pre-payment of funds even before they start production (mostly the products are not made by them, they also purchase them from other manufacturers and put their brands on the goods).



Street

Dear its very informational. I do need to know what about the war of prices and quality between india and china among export orders?

Quoting from [Taal]:



Dear its very informational. I do need to know what about the war of prices and quality between india and china among export orders?

You have to compare prices at a specific level, meaning to compare apples with apples.


Even when comparing apples with apples, you have to evaluate the other factors such as product quality, branding, after sales service, aesthetics and expandability, or scalability.


The Chinese are very weak in the area of the AS (After-sales Service), they become arrogant and take the customers for granted, using words such as "your orders are very small" to our US$50,000 transaction, and on volumes of tens instead of hundreds.


When we talk about marketing skills, the Indian companies fare better, as the whole company, not only one or two members are well versed in the English language. In the area of PR, the Chinese seems cold and level headed in their approach to their customers, it may be in their thinking that they are offering the cheapest products in the world, and they are benefiting the customer, not the other way around. On the contrary, the Indian products are off-limits to small buyers, some of the prices are very high, and I would have guess that they import them and re-export with a markup plus the tax. Import tax for both countries are high, to discourage the outflow of their currencies.



Other than these comparisons, there are the matter of product quality, innovation and technology, these can be acquired or if it is open domain, be adopted by companies from both countries.


Street

Taal wrote:

What are the main "Business-Cultural" differences in Indian and Chinese Markets?

Please provide your answers in points form.