In just 10 years, China has built world-class MNCs that have graduated from making cheap copycats of western products to competing with world's biggest MNCs. And now India is in their cross hairs. Indian companies have a reason to be afraid because they are not going to match the Chinese manufacturers who ride on aggressive pricing, state subsidy, protectionist policies and cheap finance.
Take smartphone-maker Xiaomi. Once considered a cheap copycat, it is now emerging as a leader in India. It plans to diversify into high-margin products such as electric vehicles and fast-track segments such as payment banking. Recently, it made a regulatory filing in India, stating its future game plan.
Given its runaway success in smartphones in a very short period, it can dominate auto and consumer goods segments in coming years.
Xiaomi's regulatory filing exhibits its ambition and the threat it poses to Indian manufacturers. From electric and other vehicles small and big, it also plans to sell laptops, gaming consoles, computer accessories, lifestyle products, network equipment, clothes, toys, backpacks and suitcases, and bath and kitchen products.
Chinese goods have already dominated the Indian market as every home is teeming with Chinese products. While Indian manufacturing is still struggling to take off, China has grown into a manufacturing powerhouse in less than a decade.
To be sure, there are going to be not one but many Xiaomi's.
Source: economictimes.indiatimes.com