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Chinese Business, Indian Way


Would it be over-exaggeration if I say that, somewhere down the line, it was the onslaught of ultra cheap mobile handsets that triggered off the new trend of marketing cheap mobile handsets with premium features in India?

Dreams of high-end mobile features at lower cost came to reality, thanks to these Chinese handsets. High-end features such as large colored touch screen, MP3 player, higher resolution Camera and even the QWERTY keypads did the trick for affordable handset category.


Over a period of time, this step prompted even other prominent handset manufacturers to launch such ultra low cost handset with selective premium features.

However, lets not get into quality and durability aspect of such ultra low cost mobiles right now – Most of these handsets with ‘clone’ features of other premium class mobiles came with a thought of suspicion as to how be it possible to provide such premium features at such an affordable cost?

But, the mobile market is bustling with energy and the players involved are betting on the volume game and it could be very much possible to provide some of the sophisticated features at relatively lower margins.

Mobile Phone Market Growth

In one another move led by Chinese firms which are constantly being eyed with a whiff of suspicion, companies like Huawei Technologies Co Ltd. and ZTE Corporation have initiated an ‘Indianisation drive, where both the companies are said to be replacing Chinese nationals with Indians on their board of directors.

The report says that the above move could be an attempt by the companies to change the public perception in India and at the same time ward off intense government scrutiny over Chinese firms.

Few months back, state-owned BSNL had cancelled a 20-million line GSM contract with Huawei, within days after it had been awarded to the Chinese company on account of its lowest bid. The cancelled contract still remains a mystery though some sources say it could be due to security issues.

To tackle with such sensitive issues, Chinese companies such as ZTE Corporation are increasingly involving Indians at the senior management levels. At the same time, ZTE employs 87% Indians for its Indian operations. Huawei targets to increase its employee strength in India from 6000 currently to say around 8000 to10000 in numbers.

Having discussed above measures initiated by the Chinese companies, these strategies also forms a part and parcel of overseas operations.

In one of our earlier article, we have elaborated the aspect as to how crucial it becomes to adapt to the practices and marketing tactics to ensure smooth flow of business operations in the overseas market.

Thus, with the rising ambitions of dealing in overseas markets come various hurdles attached with local issues, which are best resolved with localized mantras and moving forward in lieu of local laws and regulations.

Do you see Chinese handsets sustaining for long in India?

  1. balaji says

    IT is not surprising that Chinese are employing Indians.How many Indian employees are there in Tata’s Jaguar and Rover division in UK,my guess is none.Every multi national has this strategy of employing locals in their management.
    We have to encourage Chinese businesses in India as they are the masters of low cost models of any product.We need this low cost products to increase consumption and possibly stimulate competition as well.BSNL scrapping the deal may result in doling out lot more money for the GSM contract than necessary.We are a 565 million mobile market ,there will be room for everybody no need to protect Indian business.Security issues-certainly we cannot treat Pakistan and China in the same breath.They are a lot more sensible adversary compared to the Anti Indian hysterics of Pakistan.

  2. Nathan says

    They cannot have hold here for long.we have lot of desi brands mushrooming every day.they can match with the Chinese
    brands price easily,because most of the desi brands are importing parts from taiwan and assembling it here.
    Recent ban on chines mobile which doesn’t have IMEI paved a way for desi brands to flourish.Now desi brands are eating in smart phone markets and giving head ache to MNCS.
    Though they increased Indian in top management and more Indian in their company ,they will face tough restriction from Indian government in the security front.

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