Foreign media: Is Foxconn really unable to turn back?
This article is original, please do not plagiarize and repost, offenders will be investigated!
Foxconn regards the Indian market as the second"Chinese mainland"The scale and enthusiasm of its investment is comparable to that of decades ago, when it first entered the mainland market. As long as Foxconn has enough time, maybe it will really succeed in the Indian market. But things are not as simple as imagined, Foxconn's challenges made in India are one after another, foreign media: Foxconn has no turning back.
Foxconn's"Made in India"Challenge.
Foxconn is mainly engaged in the production of smartphones, tablets, and other electronic products in India. By establishing a production base in India, Foxconn can better meet the demand for electronics in the Indian domestic market and benefit from the support of local policies, such as India's policy to promote local production.
Apple, one of Foxconn's main customers, is also very interested in the Indian market, which makes Foxconn even more determined to build a factory in India. Foxconn not only helped Apple produce iPhones, but also cooperated with India's HCL Group in the semiconductor field, investing 37.2 million yuan to establish a joint venture to enter the Indian semiconductor industry.
Foxconn wants to enter all markets, from mobile phone manufacturing to semiconductor manufacturing, and has even stepped up its activities in the field of electric vehicles and wants to expand it to the Indian market.
Foxconn's investment in the mainland market may be directly proportional, and the greater the investment, the greater the return, while the Indian market is not necessarily, it may be inversely proportional, and the greater the investment, the return may not meet expectations, because the challenges of Indian production are beyond Foxconn's imagination.
On the one hand, India's Tata Group has also received Apple's iPhone generation package, and Tata Group plans to become India's largest iPhone OEM company. For Apple's ** chain management style, Foxconn will definitely not be a monopoly. More orders can be handed over to the Tata Group, and it can also support the Indian ** chain, but Foxconn is facing a lot of competitive pressure.
On the other hand, India's labour market is huge, but there are also some problems such as a mismatch between skills and wages**. Due to the import of production equipment from China, many ordinary Indian workers are unable to meet Foxconn's labor skills requirements, and there is also a problem of not being able to read words, which affects production efficiency.
Will Foxconn go back on it?
The business environment in the Indian market is well known, and many foreign companies are ready to do a big job after coming to India, and after a few years, they will be targeted by India and fined for various reasons. Foxconn, which has made money in the Indian market, is also likely to become one of the targets of India's-for-tat.
The question is whether Foxconn can back down. Foreign ** gave the answer: Foxconn can't back down.
Judging from Foxconn's commercialization plans, India, as one of the most populous countries in the world, has huge market potential. Foxconn's investment in the Indian market is to make full use of this market opportunity, meet the needs of the local market, and expand the scale of business. The cost of labor and production in India is lower compared to other countries.
By producing in India, Foxconn can reduce production costs and improve competitiveness. Therefore, there is no reason for Foxconn to refuse to enter the Indian market.
In addition, Foxconn's investment in the Indian market is approved by India, and it is not something that Foxconn can come and go whenever it wants. This is a point of no return, and once Foxconn makes a choice, it must bear all the consequences.
If you agree, please give a thumbs up and feel free to **, comment and share.