In the domestic market, Foxconn is also a household name, and many people are very familiar with the Foxconn factory, because we can see the Foxconn factory in many provinces in China;Over the years, Foxconn has relied on the Chinese mainland market to make a lot of money, not only developing into the world's largest foundry, but also becoming the world's top 500 enterprises!
As a labor-intensive enterprise, Foxconn also provides us with a large number of jobs, at its peak, Foxconn has 1.2 million workers in China, which also greatly promotes the development of the domestic economy;It can be said that Foxconn's development in the mainland market is mutually successful, but what people didn't expect is that after Foxconn's largest customer Apple said that it wanted to go to India for development, Guo Taiming changed his face, not only threatening to "build a factory in the mainland is to give us food";And also began to invest in the construction of factories in India, and want to transfer hundreds of billions of production capacity to India!
And the news that Foxconn was investigated soon came out of the market, which can be regarded as a kind of knock on Foxconn, but I didn't expect Guo Taiming to care, and now he has begun to settle accounts after the autumn, Guo Taiming made a new decision to invest 11 billion US dollars, and then reward new factories in India, foreign media: The pot is going to be gone!
After Apple's CEO Tim Cook went to India to develop, Foxconn's founder Terry Gou began a series of actions to try to shift Foxconn's production focus from Chinese mainland to India. This decision is undoubtedly a departure from the Chinese mainland market, and it is also a waste of Foxconn's previous accumulated resources and contacts in the Chinese mainland market.
However, the market did not buy Gou's decision. Some analysts believe that although Foxconn has established a factory in India, although India's labor costs are lower than China's, its infrastructure construction and production efficiency are far lower than China's. In addition, India's environment and business environment are also relatively unstable, which brings a lot of uncertainty to the long-term development of enterprises. Therefore, shifting the focus of production from Chinese mainland to India is not a wise choice.
In fact, Foxconn's position in the Chinese mainland market is also facing increasing challenges. With the rise of domestic labor costs and the intensification of market competition, Foxconn's profit margins are gradually shrinking. At the same time, domestic enterprises are also gradually rising, gradually breaking Foxconn's monopoly position in the field of foundry. In this context, Foxconn needs to find new development opportunities and market space.
However, shifting the focus of production to India is not a viable option. Despite its large population, India's economic development and infrastructure lag far behind China's. At the same time, the business environment in India is relatively unstable, which brings a lot of uncertainty to the long-term development of enterprises.
Today, the Chinese mainland market is still one of the largest consumer markets in the world, and with the continuous development of the domestic economy and the improvement of technological level, the needs of domestic consumers are also constantly upgrading. For Foxconn, it is the best choice to continue to cultivate the Chinese mainland market and strengthen technological innovation and brand building.
Finally, it should be pointed out that although Foxconn's decision to build a factory in India may have some impact on the Chinese mainland market, it does not mean that the Chinese mainland market has lost its attractiveness. On the contrary, the Chinese mainland market still has a huge consumer group and a broad market space, which is still very attractive to many enterprises. Therefore, for enterprises, they need to make the most appropriate decisions according to their own actual situation and market changes. I don't know what you think about this?