When you decide to import goods and you’re in search of a supplier who best fits your business, automatically you’d think about China and India. But before you settle with the cheapest option, there are several things to consider, as other external factors can affect your supply chain.
If your business is looking to outsource product development outside of North America, India is likely the best first choice for your needs. To find out more about outsourcing to India reach out and we’ll walk you through all benefits India has to offer.
Economic environment factors can influence the price of goods you wish to import. For example, the trade war between China and the United States has lead to a slower economic growth rate. With this in mind, countries such as India present strong economic factors that aid in the manufacturing process, thus serving as a safer option.
How To Manage The Challenges of Sourcing From Overseas Manufacturers
India has a wide range of raw materials available within the country, for example, natural fibers, such as jute and cotton, recycled synthetic fibers, marble, metal, wood, bamboo and many others. For this reason, raw materials don’t have to be imported from other countries and it’s easier for factories to source new materials for their customers’ request.
One of the biggest reasons for Western businesses manufacturing in India is the cost of labour, which is significantly less compared to Western nations. This is a widely known fact, but what people don’t know is that labour cost in India is even lower than in China.
Another significant benefit of outsourcing to India compared to China is smooth communication. English is the second official language in India and most people speak it, especially in executive roles.
India specializes in producing unique and handcrafted products not found in other countries. There is also a wide range of indigenous handcrafted styles that are unique to the country.
Besides serving as inspiration throughout the development process, adding handcrafted elements to your designs to diversify them on the Western market can be a definite advantage above your competitors.
Check out our Custom Embroidery Page to see just how amazing handcrafted work can look.
Minimum Order Quantities
Since a lot of Indian products are handmade, suppliers are usually willing to cater to smaller orders. While minimum order quantities typically range from 200 to 500 units, suppliers are often willing to fulfill orders as low as 24 pieces.
They may charge a slightly higher price for smaller orders, but this is a tremendous advantage for you if you have a small business, just starting out with a smaller budget, or want to test a new product line or design.
India is undoubtedly a great option when you’re looking for quality equipment and manufacturing, due to the fact that India uses some of the best equipment in the world.
Many Indian firms use Japanese machines during production, Japanese machinery is seen as a high class in the rest of the world, thus, using these machines enhances the product quality standards of Indian suppliers.
Care And Transparency
India’s culture has always been to manufacture at a relatively small scale, especially when compared to China. There is a bad image surrounding large companies and investors, so Indian Business owners prefer family-owned and artisan models instead.
With a family-owned business, you’re more likely to get better prices, better payment terms with lower or no advance payments, longer credit times, or there will be no charge for samples, just to name a few.
Also, many factory owners take pride in their products so they’re willing to go the extra mile to ensure the best quality products possible.
There are two major logistical reasons that contribute to the substandard infrastructure when comparing India & China, one being inadequate transportation and the other being the shortage of electricity.
India relies heavily on its road network when transporting raw materials to factories or finished goods to the pier. Depending on the location of the factory, the roads leading up to it might be unpaved or not wide enough to accommodate effective transportation methods.
In India, electricity is both expensive and limited, which also could drive up the cost of the production and lengthen the process as factories simply cannot run at certain times. Still, Indian federal officials remain focused on improving the conditions to draw even more manufacturing to the country.
Importing From India
With the US tariffs on China-made products, many importers are looking to source products from alternative markets, and India is one of them. As previously stated, India is not in a trade war with America, as such there are fewer tariffs on imported goods. This means you’re able to save more money by avoiding unnecessary tolls.
If you’re interested in outsourcing product development services abroad, or simply wish to learn more about the subject, feel free to reach out to us! One of our expert team members will walk you through our process and ensure a smooth operational transition.
Feel free to reach us via our contact page for more details.