Analysis of Procurement Demand in Southeast Asian Countries India

Mondo International Updated on 2024-02-01

Although the reputation of the "Indian Third Brother" in the international ** is not very good, there is even a saying among foreign trade factories that "India's list can not be done; To do, not to the full payment will never be done. ”

However, India is still a market that cannot be ignored in Southeast Asia, after all, India is densely populated.

We foreign traders should remember a sentence: where there are people, there is a market!

Now that they're planning to explore the Indian market, what if you don't know what products they are mainly buying? In case the products we produce are not bought in India, or if the right medicine is prescribed, it will be a big loss.

Of course, to make money and make a lot of money in business!

First, the characteristics of the Indian market

1 Economic situation.

According to the International Monetary Fund (IMF), India is one of the world's fastest-growing large economies. The biggest feature of the Indian economy is diversification. Although agriculture accounts for a certain proportion of the national economy, the service sector and manufacturing industry have become the main drivers of economic growth. However, India's infrastructure construction is a bottleneck restricting economic development, and there is a lot of room for improvement in power, transportation and communications.

2 Major industries.

Agriculture is one of the pillars of India's economy, but it faces the challenges of water scarcity and poor infrastructure. With the advent of the knowledge-based economy, the service sector has become the most competitive industry in India. India's manufacturing industry has also developed rapidly in recent years, especially in the automotive, chemical, pharmaceutical and textile fields, and many multinational companies choose to set up production bases in India.

3 Consumption habits.

Indian consumers prefer moderate** branded products, especially electronics, fashion apparel and cosmetics. With the popularity of the Internet and the development of e-commerce, more and more Indians choose to shop. In addition to the pursuit of cost-effectiveness, Indian consumers also pay attention to the quality and practicality of products. At the same time, traditional culture has a significant impact on consumption habits, and consumers are often more inclined to buy products that match their own cultural background.

2. Analysis of India's procurement demand

One of the procurement needs: machinery and equipment.

The level of machinery and equipment manufacturing in India is relatively low, and many high-end and sophisticated machinery and equipment need to rely on imports. Another point is that India's industrial base is relatively weak, and the technical level is not mature enough to meet the needs of enterprises for efficient and automated production. Therefore, it is often necessary to purchase various machinery and equipment from abroad, such as:Machine tools, industrial robots, cranesWait. Finally, it is compared to the domestic marketThe first foreign machinery and equipment is more transparent and reasonable。At the same time, Indian businesses can alleviate the financial pressure through a variety of payment methods, such as installment payment, financial leasing, etc. This has enabled Indian businesses to do betterControl costs and improve the efficiency of capital use

Procurement needs of the second raw material:

India's domestic raw material market** is insufficient to meet the needs of enterprises. Moreover, the purchase of raw materials from abroad can also reduce production costs and improve the competitiveness of enterprises. Plus the processing and production of many raw materialsHigh-tech equipment and methods are required。Indian enterprises are relatively backward in technology and cannot reach the international level. In order to achieve better product quality and performance, Indian businesses choose to purchase advanced raw materials from abroad, such as:Iron and steel, chemical raw materials, plasticsWait. In order to ensure the quality and competitiveness of our products.

Procurement demand 3: electronic products.

Compared with India's domestic market, foreign electronic product manufacturers have a more mature industrial chain and scale effect, which makes their productsThe cost is lower, and the selling price is relatively more advantageous。In order to reduce production costs and improve the market competitiveness of products, Indian companies are often more inclined to purchase electronic products from abroad. The most important thing is, of course, that some foreign electronic product manufacturers have a high level of R&D, production and quality control, and can provide more reliable quality electronic products. In order to ensure the quality and performance of products, Indian companies are also willing to purchase high-quality electronic products from abroadSuch as chips, circuit boards, displays, etc

PS: Indians are very fond of Chinese Xiaomi phones, and their sales are unbeatable in India).

Procurement demand four: medical equipment.

India's medical industry has gradually shown a booming development trend in recent years, with the improvement of health awareness of the Indian people and the continuous advancement of hospital medical technology, the demand for medical equipment in India is also growing. However, India's local medical equipment manufacturing technology is backward, and many hospitals choose to import advanced medical equipment from abroadFor example, X-ray machines, CT scanners, electrocardiographs, etc. These devices can provide doctors with accurate diagnosis evidence, help doctors better understand the patient's condition, so as to develop a more accurate plan.

Procurement demand five: auto parts.

India is the world's fourth-largest automotive market and a major producer of automobiles. Despite India's huge automotive market, its domestic auto parts industry has not been able to keep up with the market. India's domestic auto parts industry is somewhat backward, the production cost of many parts is high, and even the quality and performance of some products cannot meet international standards. This is mainly due to the lack of advanced production technology and equipment in India, as well as the lack of high-quality talent and labor. Therefore, in order to improve the overall level of the automotive industry, India has to import auto parts from abroad, such as engines, gearboxes, brake pads, etc.

India, a major automobile producer, has 27% of its parts from China, and it seems that our Chinese foreign trade enterprises are still very advantageous

Procurement Demand 6 Chemicals:

Although India's domestic chemical industry is developing rapidly, it is still dependent on imports of high-end chemicals. Importing these chemicals from abroad can reduce production costs and improve the economic efficiency of enterprises. Compared to developed countries in the West and some other developing countries, China's chemicals** are generally low. This allows Indian importers to purchase the chemicals they need at a lower price, thereby reducing production costs and increasing market competitiveness. In addition, China has a scale effect in chemical production, and can provide a large number of high-quality, low-cost chemicals, which fully meets the needs of the Indian market. Therefore, Indian manufacturers still love to buy Chinese chemicalsLike electronic grade hydrofluoric acid, epoxy resin, polyvinyl alcohol, methanol, etc., are all small cases

3. How to meet the needs of the Indian market

1.Establish a sound logistics and transportation system.

India's infrastructure construction is relatively lagging behind, and the logistics system is not perfect, which brings great challenges to export enterprises. Enterprises need to take into account factors such as logistics costs and transportation time, and arrange production and delivery times reasonably, so as not to affect customers' procurement plans and their own market competitiveness in India.

You don't have to worry about this, Chinese foreign traders provide you with fast and reliable international freight services to meet different transportation needs, including sea, land and air integration options.

2.Learn about the Indian market and culture.

Before entering the Indian market, it is important for companies to have an in-depth understanding of the Indian market and culture, including information on consumer habits, values, religious beliefs, education levels, and consumption levels. In addition, companies also need to understand India's business environment, including laws and regulations, policies, tariff regimes, etc. This information helps companies to better develop market strategies and product strategies to adapt to the specific needs of the Indian market.

3.Strengthen brand marketing and promotion.

In the Indian market, brand awareness and reputation are critical to the success of a business. Therefore, enterprises need to strengthen brand marketing and promotion to improve brand awareness and influence. In the process of brand marketing, enterprises can use a variety of methods, such as advertising, public relations activities, social marketing, etc., to attract consumers' attention and recognition.

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