India's Market Strategy For Chinese Footwear Enterprises

In the past ten years, China, a big manufacturing country, quietly went abroad to invest and build factories and open up foreign countries. market The pace. As China's nearest neighbor and the second largest country in the world, India has also attracted the attention of some Chinese enterprises. They dare to go all the way to India to open up new markets. Wan Bang shoes and HUAWEI are among the best. The former subcontracting shoes, using the abundant labor resources in India, while the latter compete positively with the local developed telecommunications enterprises. The road they have traveled, the experience gained and lessons learned will undoubtedly be a valuable asset for the latecomers. In particular, they have explored the experience of attaching importance to localization and social responsibility, especially Chinese enterprises overseas. Investment A motto that can not be ignored.

　 Wan Bang shoe industry:

Communication channels are very important.

"First, we need to understand the local laws and investment environment well, because the laws in India are very detailed. Administration The same is true. Chinese people can work overtime, but many people in India are going home after work. Overtime is not welcome. We should do well in this area. To sum up, manufacturers must abide by the law, communicate with local legal departments, and pay attention to human management when they arrive in new countries. These are the summing up of investment experience in India in the past. Yang Jizheng, general manager of Wan Bang shoe company. He has over 5 years of experience in investing in India.

Wan Bang shoe industry is a large foundry, specializing in the production of well-known brand Adidas sports shoes. In 1991, it was formally established in Guangzhou. Later, the factory moved to Qingyuan to set up Wan Guo shoes (fresh) Co., Ltd., and then set up factories in India in 2006.

The choice of investing in new factories in India is due to the impact of the implementation of the new labor contract law and the appreciation of the renminbi on the domestic investment environment. The profit of the WAN Bang shoe industry as a large foundries has been declining. Therefore, after discussing internally, Yang Jizheng decided to find a new way to open India processing plant.

In 2006, it coincided with India's investment in China. By chance, the WAN Bang shoe industry signed a memorandum of financial supervision with the government of India, and chose a factory built in the northwest of India in the northwest of Qing Dynasty. The factory only spent 11 months from signing to commissioning, with a total investment of more than 80 million dollars.

Now entering the fifth year of development in India, the WAN Bang shoe industry has more than 7000 employees in India, and its production capacity has increased to 400 thousand pairs per month. The 7000 employees plus some outsourcing services such as procurement services, Wan Bang shoe industry in India has led to the employment of tens of thousands of people. By contrast, China's production base, Qingyuan plant, has only 13 thousand employees.

Yang Jizheng, who manages nearly 10000 local workers in India, has gone through a lot of groping. In Yang Jizheng's view, there are many differences between Chinese and Indian staff. The management concepts and communication modes of India employees and Chinese employees are quite different.

For example, factories in India account for more than 65% of men, but the shoe factories in Qingyuan are mostly young women. The stability of workers in India factories is relatively high, and nearly 40% workers are over three years old. India workers generally live less than a kilometer away from factories, and are willing to go home after work, while only 34% of Qingyuan factories come from Guangdong, and 60% from nearby provinces. Chinese and Indian workers also have different requirements for accommodation. According to Yang Jizheng's photos, its supporting quarters in India are neatly arranged, surrounded by green trees and surrounded by beautiful surroundings.

"Workers in India are very emotional." After summing up the differences between Chinese and Indian staff, Yang Jizheng said. To this end, Yang Jizheng set up some channels of communication in India's factories, such as opening the general manager's mailbox and e-mail for staff feedback; staff representatives elected representatives of various departments to reflect their opinions at any time; the staff meeting of the factory was held every month, and weekly coordination meeting of department heads was held to ensure smooth communication channels.

Yang Jizheng said that in order to achieve localization management in India and focus on human management, we need to balance several aspects. First, there are measures to give back to the community to win support from local communities, because the sense of corporate social responsibility is very important in India. Wan Bang shoe industry supports local schools in the local communities where factories are located, supporting the construction of schools, repairing bridges and building roads, and has gained support from local residents.

The relationship with the local media also plays a vital role in the development of factories. Yang Jizheng said that when he first went to India, he didn't understand that he thought he could manage production. When I went to India, I discovered that as long as the factory had any conditions, the media would make reports so that the government and residents could feel relieved. India has developed media industry. There are several TV channels that broadcast news 24 hours a day, so we need to let the local media know the development of the company. {page_break}
 

　 HUAWEI: localization is the key to successful investment

"To understand the industry you invest in, understand the operation of legal tax, and pay attention to internal management. There are no problems in the overseas business of general enterprises, but there are many small aspects of cross-cultural management to be noted. Before entering India, we need to have a judgement whether your resources can support your development. Yao Weiming, senior vice president of HUAWEI, concluded. HUAWEI has been developing in India for more than 10 years.

The development mode of India is different from that of China. The level of technology development is much higher than that of manufacturing industry. India has a huge labor market with the world's third largest labour force. The telecommunications industry in India is an open market. There are more than 20 operators facing the global competition, but few are state-run, and the competition is fierce. Telecom tariffs in India are very cheap, and it is very challenging for the entrant to stand firmly in the telecommunications industry in India, because it has to meet challenges from global competitors and maintain low tariffs. These are all challenges for HUAWEI in the telecommunications industry.

In view of the local characteristics of India, HUAWEI first started research and development in India. After the track of R & D operation, sales service market and so on began to be laid. "In India, in addition to R & D personnel, plus Cooperative procurement, led to tens of thousands or even more people employment. Now HUAWEI has more than 10 branches in India, with an average annual investment of $150 million per direct operating platform. Yao Weiming said.

At present, 99% of employees in HUAWEI India are India native. In order to promote the localization of HUAWEI in India, HUAWEI appointed India locals as executives and asked Chinese employees to take India names so as to better integrate into India's local culture.

The development of HUAWEI in India is not smooth sailing. Many news reports such as bids have been reported before. However, in the past 10 years, the development of HUAWEI in India has already begun to scale, and the largest R & D center in overseas has been established in Bangalore, India, in Bangalore. In the next five years, we will invest more than $2 billion in India, establish a new R & D center and expand the business scale in India.

Yao Weiming believes that "India" is an important factor that HUAWEI can survive and grow after difficulties. For HUAWEI, "India" means to integrate into India society and fulfill its sense of social responsibility while doing well.

"Disaster relief, support for the development of education and other work has begun for several years. We promote social work similar to that of China's hope primary school in India. Since 2007, the infrastructure and power generation facilities of 1000 India poor schools in India have been supported in 3 years. " Yao Weiming said that India's society attaches particular importance to corporate social responsibility.

"We have many experiences in the past ten years, including some challenges and many lessons, but there are also many successes. Generally speaking, in the process of internationalization, especially in the long run, it is not a simple business to take root in a market. He didn't make money. Yao Weiming believes that in India, it is a challenge from all sides, whether it is business, technology or other technologies, such as labor relations and government relations. However, the two governments are pushing forward the development of bilateral relations and bringing more opportunities for enterprises in both countries.