According to the statistics from United Nations, China exports to India was US$102.25 Billion during 2022.
Over the last twenty years, we’ve assisted over 100 individuals and companies in India in sourcing and importing products from China; our services encompass tasks like identifying appropriate factories, negotiating prices, conducting product inspections, coordinating shipping logistics, and other aspects, all aimed at enhancing the efficiency and reducing the cost of wholesale procurement from China for our clients. |
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Case Study: IndiGadgets Pvt. Ltd.
Background of the Indian Business
The Indian business, IndiGadgets Pvt. Ltd., is a medium-sized enterprise specializing in manufacturing consumer electronics. With increasing competition and rising production costs, IndiGadgets Pvt. Ltd. sought to streamline its supply chain by sourcing components directly from China.
Why SourcingWill?
IndiGadgets chose SourcingWill due to its:
- Extensive network of reliable Chinese suppliers.
- Expertise in negotiating favorable terms.
- Quality assurance processes.
- Transparent and efficient communication.
Initial Challenges
Before engaging with SourcingWill, IndiGadgets faced several challenges:
- High Costs: Local suppliers were charging premium prices, affecting profitability.
- Quality Issues: Inconsistent quality of components from various suppliers.
- Logistics Problems: Delays and complications in shipping and customs clearance.
- Lack of Direct Access: Difficulty in directly negotiating with Chinese manufacturers.
Solutions Provided by SourcingWill
SourcingWill implemented a comprehensive sourcing strategy to address these challenges:
- Supplier Identification and Vetting
- Conducted extensive market research to identify potential suppliers.
- Performed due diligence and audits to ensure supplier reliability and compliance with international standards.
- Negotiation and Contracting
- Leveraged their expertise to negotiate better pricing and payment terms.
- Drafted clear and comprehensive contracts to safeguard IndiGadgets’s interests.
- Quality Assurance
- Implemented stringent quality control measures, including pre-shipment inspections.
- Established a system for continuous monitoring and feedback to ensure consistency.
- Logistics and Customs Management
- Coordinated with logistics partners to streamline shipping processes.
- Assisted with customs documentation and clearance to minimize delays.
Data Analysis
The following data highlights the impact of SourcingWill’s services on IndiGadgets’s operations:
Metric | Before SourcingWill | After SourcingWill | Improvement (%) |
---|---|---|---|
Average Component Cost (USD/unit) | 12.50 | 9.75 | 22 |
Quality Rejection Rate (%) | 8.5 | 2.3 | 73 |
Lead Time (days) | 45 | 30 | 33 |
Overall Supply Chain Cost Reduction | – | – | 18 |
Results and Benefits
By partnering with SourcingWill, IndiGadgets achieved significant improvements:
- Cost Savings: Reduced component costs by 22%, leading to an overall supply chain cost reduction of 18%.
- Enhanced Quality: Quality rejection rate decreased from 8.5% to 2.3%, enhancing product reliability and customer satisfaction.
- Reduced Lead Time: Lead time for receiving components reduced by 33%, allowing for faster production cycles.
- Improved Efficiency: Streamlined logistics and customs processes, resulting in fewer delays and operational disruptions.
Top Products That were Imported into India from China
China is one of India’s largest trading partners, and a wide range of products are imported from China to India. Here are some of the top products that our clients in India have historically imported from China:
- Electronics and Electrical Equipment: This category includes items such as smartphones, laptops, tablets, televisions, home appliances, and electronic components. Chinese electronics brands are particularly popular in India.
- Machinery and Industrial Equipment: India imports machinery and industrial equipment, including manufacturing machinery, construction equipment, and machine parts, from China.
- Pharmaceuticals and Chemicals: China supplies pharmaceutical products, active pharmaceutical ingredients (APIs), and various chemicals to the Indian pharmaceutical industry.
- Textiles and Apparel: China is a significant source of textiles, clothing, and footwear for the Indian market. Many Indian consumers purchase clothing items and fabrics that are manufactured in China.
- Automobiles and Automotive Parts: China provides vehicles, including passenger cars and two-wheelers, as well as automotive parts and components to the Indian automotive sector.
- Toys and Games: Toys, games, and other recreational products are commonly imported from China.
- Plastics and Plastic Products: Various plastic products, such as packaging materials, consumer goods, and plastic components, are imported from China.
- Steel and Metal Products: India imports steel and metal products, including steel pipes, sheets, and aluminum products, from China.
- Furniture and Home Decor: Chinese-made furniture, including home and office furniture, as well as home decor items, are popular in India.
- Solar Panels and Renewable Energy Equipment: India has been investing in renewable energy, and Chinese-made solar panels, inverters, and related equipment are widely imported.
- Kitchenware and Household Goods: Chinese-made kitchen appliances, cookware, and household items are available in the Indian market.
- Footwear: Footwear, including sneakers, sandals, and formal shoes, is among the products imported from China.
- Chemicals and Raw Materials: China supplies various chemicals and raw materials that are used in Indian industries.
Note: This list can serve as a good reference for beginners in Indian market. See List of All Products That Were Imported from China to India.