New Delhi, Sept 28 (ANI/Business Wire India): India importers are looking to China manufacturers more and more to fight rising costs, according to dual surveys released by trade publisher and trade show organizer Global Sources.
The surveys, conducted in July and August, tracked the views of thousands of volume importers and purchasing managers who supply India's retail distribution channels. The surveys focused on consumer electronics and hardware and building materials - two of India's fastest growing segments.
"As India's economy continues to expand, Indian consumers have more disposable income to spend on luxury goods like consumer electronics," said Bill Janeri, General Manager at Global Sources. "Indian consumers want the next hot electronics gadget. Or a new large-screen LCD television. And retail distribution channels in India are better able to supply this demand than ever before, with a wide selection of quality, affordable products."
"At the same time, India's construction boom is driving the need for more and more building materials and hardware products. Because of the volumes required by some of India's property developers, many are importing these building materials directly from China," Janeri added.
Last year, China became India's largest trading partner - overtaking the United States. While Indo-US aggregate international trade is expanding by 23-24 per cent annually, India-China trade grew at 50 per cent during 2002-2006 and increased by 54 per cent during 2007 to reach 37 billion dollar.
According to the survey respondents, a high percentage of India's buyers have extensive experience importing. And many already import from China; 46 percent of hardware buyers already import from China, while 54 percent of electronics importers already buy direct from China suppliers.
Of those buyers who are not already importing from China, between 44 percent and 49 percent plan to in the next 12 months.
The reason? Rising inflation, say India's purchasing professionals. Over 75 percent of both survey's respondents said their companies were struggling with rising costs and are looking for lower-cost sourcing options.
"To combat inflation, India's purchasing managers are sourcing products more frequently. They are stocking less inventory in their warehouses and on their retail shelves," said Janeri. Over 96 percent of survey respondents said they are souring more frequently than in previous years.
"Supply-chain management is becoming more efficient in India. And these buyers are looking to China manufacturers to supply this ever-changing need for products." Around 90 percent of survey respondents said they felt China suppliers offered end-consumer a wider selection of products at reasonable prices. Over 95 percent of respondents to both surveys indicated they would increase their purchases of products from China in the coming year.
In November, Global Sources, in cooperation with partner company Pico Event Management, will bring its China Sourcing Fair trade show series to India for the first time. Launching originally in 2003, the China Sourcing Fairs have attracted thousands of buyers to Hong Kong, China and Dubai to meet directly with manufacturers from mainland China, Hong Kong and Taiwan. There will be two China Sourcing Fairs in India: The China Sourcing Fair: Electronics and Components, and the China Sourcing Fair: Hardware and Building Materials. The events will be held November 14-16, 2008, at the Bombay Exhibition Centre, in the Goregaon area of Mumbai.
The China Sourcing Fair: Electronics and Components event will feature exhibitors of products such as:
-- Consumer electronics
-- Computer and networking
-- Telecom and accessories
-- GPS products
-- Security and safety
-- Power supplies
-- Electronic Components
-- Home appliances
The China Sourcing Fair: Hardware and Building Materials event will feature exhibitors of products such as:
-- Building materials
-- General hardware
-- Flooring, ceiling, roofing materials
-- Wall cladding and coverings, windows and doors
-- Bathroom and kitchen supplies
-- Plumbing, heating and cooling supplies
-- Tools and accessories
-- Industrial safety and law enforcement equipment
-- Lawn and garden accessories
-- Lighting and electrical fixtures and fittings
More details about the China Sourcing Fairs in Mumbai are available at http://www.chinasourcingfair.com/india.
Global Sources is a leading business-to-business media company and a primary facilitator of trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other business segments facilitate trade from the world to Greater China, and trade within China, using Chinese-language media.