Is this a paradise for entrepreneurs or their “desperate land”?
Editor’s note: This article comes from the WeChat public account “Little Finance” (ID: yidiancaijing) / a>.
Author / Liu Shuyan
Edit / Qiu Yun
Where can best generate growth and profits, capital will always flock And here.
“Where consumer demand grows, it makes sense to build a supply chain.”
This sentence by Wharton School management professor Saikat Chodou is also accurately reflected in the Indian market. At present, India already has 40,000 emerging companies and nearly 40 unicorn companies. Among the many investments, only 10% came from India, and 90% of the funds came from the United States, China, Japan and Singapore. It is also worthy of the name of the third largest emerging enterprise ecosystem after the United States and China.
From apparel retailing to mobile phone manufacturing, from e-commerce to cultural entertainment, multinational companies and capital giants have come to the Indian market to race, what kind of charm does India have? In the process of Nuggets India, what confusions and problems do companies have?
01 Xiaomi’s feast is over?
If you ask which industry in China has achieved the most dazzling results in India, it must be smartphones.
In 2019, India becomes the world ’s second largest smartphone market after China, while domestic mobile phone brands such as Xiaomi, OPPO, vivo, Realme, etc. account for more than 60% of the Indian smartphone market, with more than 450 million users.
This all began when the Modi government began to implement the “Made in India” national strategy from 2014. The Indian government has given great policy concessions to attract foreign investment. Millet represented by vivo, OPPO, Gionee, Lenovo, OnePlus and other domestic mobile phone brand manufacturers, without exception, built large factories in India’s horse race. Compared with the fiercely competitive and shrinking demand in the domestic market, the Indian market has become a new engine for Chinese mobile phone manufacturers.
The data for the fourth quarter of 2019 shows that Xiaomi continues to hold the first share in the Indian market, occupying a 29% market share, followed by Samsung, vivo, Realme, OPPO and Apple. It is worth noting here that Apple has achieved its best performance in India, with a year-on-year growth rate of more than 200%.
For many years, Apple has been trying to occupy India ’s market share, but its high price has discouraged many Indian consumers. Disappointing performance in the fast-growing Indian market has been one of the reasons why Apple ’s performance has been weak. It seems that Apple’s multiple price reduction strategies in the Indian market have achieved remarkable results.
As India still has a large number of poor people, the Indian smartphone market is very price sensitive. IDC data shows that the average selling price of mobile phones in June 2019 was $ 159.
On the other hand, Xiaomi’s entry into the Indian market soon won the craze of Indian consumers-Xiaomi’s mobile phones are “shiny” like the iPhone, but the price is only 1/3 of it.
However, this new crown started in early 2020Li Hui (pseudonym), a private entrepreneur who made an investment in Myanmar ten years ago, told Yidian Finance that in 2011 Myanmar’s anti-China was serious, infrastructure was poor, government corruption was serious, many central enterprise projects were stopped, and private entrepreneurs were even earlier. It was withdrawn from Myanmar. Now he has withdrawn to the country and contracted 300 acres of blueberry cultivation in Dehong, near Myanmar in Yunnan Province.
Li Hui said that although Myanmar ’s low labor cost is an advantage, but considering the overall consideration, the final cost of the enterprise is actually more. “Now everyone has changed a game. Many manufacturing companies in the mainland moved to Dehong, Yunnan to build factories, and then hired Burmese to reduce costs.”
In comparison to other Southeast Asian countries, India seems to have more advantages.
Strongly growing economy, young population structure, low labor cost, favorable policy environment, education-oriented talent training system and huge internal consumer market, India is the most attractive emerging market in terms of comprehensive consideration A market.
Especially since 2014, the “India” proposed by the Modi government The slogans of manufacturing, “Indian entrepreneurship, the rise of India,” and “Digital India” have largely driven the entrepreneurial boom in India.
In the face of huge opportunities, various venture capital forces gathered in India, hoping to share market dividends: internationalized VC represented by Tiger, Sequoia, DST, and the speed of light, and Chinese giants represented by Tencent and Ali, The Indian local VC represented by Kalaari capital and the Chinese startups represented by ByteDance and UC together constitute the territory of the Indian venture capital market.
In the wave of investment boom that started around 2014, because many investment decisions were relatively blind at that time, the entry of funds did not spur the birth and growth of unicorns. In the context of the gradual decline of China Mobile’s Internet growth dividend, gold rushing to India has once again become a common choice for all capitals.
There is a saying in the investment circle: everyone bets on the future of this country in India, whether there will be the next Alibaba, JD, Alipay, Tencent, Vipshop.
Among them, Chinese capital is particularly active in India. According to IT Orange statistics, behind the 20 Indian unicorns, more than 10 have investors from China, of which Alibaba and Tencent are the most shot institutions. Alibaba’s cumulative investment exceeded US $ 3 billion, and Tencent’s investment exceeded US $ 2 billion.
India and China have a similar urban-rural dual structure and a considerable population. These opportunities give Chinese capital a unique advantage in reference to the history of China ’s Internet development
This all began when the Modi government began to implement the “Made in India” national strategy from 2014. The Indian government has given great policy concessions to attract foreign investment. Millet represented by vivo, OPPO, Gionee, Lenovo, OnePlus and other domestic mobile phone brand manufacturers, without exception, built large factories in India’s horse race. Compared with the fiercely competitive and shrinking demand in the domestic market, the Indian market has become a new engine for Chinese mobile phone manufacturers.
The data for the fourth quarter of 2019 shows that Xiaomi continues to hold the first share in the Indian market, occupying a 29% market share, followed by Samsung, vivo, Realme, OPPO and Apple. It is worth noting here that Apple has achieved its best performance in India, with a year-on-year growth rate of more than 200%.
For many years, Apple has been trying to occupy India ’s market share, but its high price has discouraged many Indian consumers. Disappointing performance in the fast-growing Indian market has been one of the reasons why Apple ’s performance has been weak. It seems that Apple’s multiple price reduction strategies in the Indian market have achieved remarkable results.
As India still has a large number of poor people, the Indian smartphone market is very price sensitive. IDC data shows that the average selling price of mobile phones in June 2019 was $ 159.
On the other hand, Xiaomi’s entry into the Indian market soon won the craze of Indian consumers-Xiaomi’s mobile phones are “shiny” like the iPhone, but the price is only 1/3 of it.
However, this new crown started in early 2020Li Hui (pseudonym), a private entrepreneur who made an investment in Myanmar ten years ago, told Yidian Finance that in 2011 Myanmar’s anti-China was serious, infrastructure was poor, government corruption was serious, many central enterprise projects were stopped, and private entrepreneurs were even earlier. It was withdrawn from Myanmar. Now he has withdrawn to the country and contracted 300 acres of blueberry cultivation in Dehong, near Myanmar in Yunnan Province.
Li Hui said that although Myanmar ’s low labor cost is an advantage, but considering the overall consideration, the final cost of the enterprise is actually more. “Now everyone has changed a game. Many manufacturing companies in the mainland moved to Dehong, Yunnan to build factories, and then hired Burmese to reduce costs.”
In comparison to other Southeast Asian countries, India seems to have more advantages.
Strongly growing economy, young population structure, low labor cost, favorable policy environment, education-oriented talent training system and huge internal consumer market, India is the most attractive emerging market in terms of comprehensive consideration A market.
Especially since 2014, the “India” proposed by the Modi government The slogans of manufacturing, “Indian entrepreneurship, the rise of India,” and “Digital India” have largely driven the entrepreneurial boom in India.
In the face of huge opportunities, various venture capital forces gathered in India, hoping to share market dividends: internationalized VC represented by Tiger, Sequoia, DST, and the speed of light, and Chinese giants represented by Tencent and Ali, The Indian local VC represented by Kalaari capital and the Chinese startups represented by ByteDance and UC together constitute the territory of the Indian venture capital market.
In the wave of investment boom that started around 2014, because many investment decisions were relatively blind at that time, the entry of funds did not spur the birth and growth of unicorns. In the context of the gradual decline of China Mobile’s Internet growth dividend, gold rushing to India has once again become a common choice for all capitals.
There is a saying in the investment circle: everyone bets on the future of this country in India, whether there will be the next Alibaba, JD, Alipay, Tencent, Vipshop.
Among them, Chinese capital is particularly active in India. According to IT Orange statistics, behind the 20 Indian unicorns, more than 10 have investors from China, of which Alibaba and Tencent are the most shot institutions. Alibaba’s cumulative investment exceeded US $ 3 billion, and Tencent’s investment exceeded US $ 2 billion.
India and China have a similar urban-rural dual structure and a considerable population. These opportunities give Chinese capital a unique advantage in reference to the history of China ’s Internet development