How are Businesses in China able to Export and Compete Globally even if they make Inferior/ Low Quality Products?


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June 2: Question: Why are Indian businesses not able to perform to their best of capacity, and do not have their due share in the global market for the products?

Answer: One obvious reason is the ‘Economy of Scale’ that the Chineseare able to leverage by producing everything in huge quantities. But that is not the only reason, because then why are you not competing with them in high quality products, and innovative designs and features.

Q: Then what do you think are the other reasons that prevent our companies from performing optimally and competing globally?

A: The first thing we have to understand is that ‘every business is run by a SYSTEM of tasks and processes done by a set of people’. So, essentially, the business will be only as good as the SYSTEM of that business. This SYSTEM is the actual engine that runs the business, and can have various components and parameters like people, products, processes, components, Quality, Speed, Tools, Strategies etc. attached to it. This is why most Business Coaches teach you to define your business tasks and processes, and build a SYSTEM around it that can be monitored, and improvised.

So, if we take this SYSTEM approach and implement it in our business, we can eventually solve all the challenges we face in the business.

Q: Are you saying that Indian Businesses lack business systems?

A: Yes, up to a large extent. I interact with business owners and heads on a regular basis, and there are business management challenges almost everywhere. The only exception are the MNCs who have mastered this art of business management, and therefore use it to their advantage. Therefore, in the same India environment, these MNCs are able to do good business, whereas local businesses lag far behind.

Q: And why are Indian Businesses not able to create or adopt business Systems?

A: Well, there are many deep rooted issues that play their role, starting from lack of business coaching / training to a host of issues like:

  • Lack of Business Networking / Marketing / Sales Skills
  • Low profitability / margins in products and services
  • Lack of Suitable Technology Products / ERP Systems / Business Management Systems
  • Training and Support Challenges for Staff
  • Cultural Challenges of Local Workers
  • Cost of Technology Adoption
  • Semi-skilled Workforce
  • Limited Time Availability for Additional Activities / Productivity Issues
  • Quality and Process Control Challenges within Business
  • Cultural Challenges in local environment

Q: So, what can companies do to overcome these challenges and move ahead?

A: Each one has to be understood properly, and then we can work on it accordingly. So let us look at the first issue, which is lack of business networking or marketing skills. If you look at the ecosystems abroad, there is a very strong culture of co-operation among companies. They do so many activities together and reap manifold benefits from them. For example, just buy a software product online from any of these USA based company, and you will start getting so many other offers from different products. This is because they do cross-marketing activities with each other’s customers.

We, ourselves, have tried so many times for collaborating with other local businesses for cross-marketing campaigns, but hardly anybody has shown serious interest. Here, we have not yet developed this culture of teaming up with our peers and doing combined efforts, which is very important, and can actually do wonders for our business.

Q: What do you mean when you say Cultural Challenges in local environment?

A: See, if you look at the Indian ecosystem, there is hardly any culture of R&D and innovation. This is because there is a lack of investment culture and mindset. We just love to see the Fixed Deposit figures in our banks, and the only investment we like to do is in real estate.

This is what Delhi government has realized, therefore they are trying to promote start-up culture. The central government is trying to do the same on the national level, but we need a wave to change our mindset, something like a ‘Modi’ wave that we are witnessing.

Q: What about the technology based challenges that need to be overcome?

A: Technology actually plays a vital role in adopting a business system in today’s date, because only then you will be able to scale up and grow properly. This is where we are contributing and trying to make a difference. We continuously try to analyze the needs of companies in India and offer them the best solution for business management.

 That is why if you look at ‘SXC Business Suite’ from SunwheelSolutions.com, we have kept the interface very simple and intuitive. Also, based on the requirements from a Gram Panchayat in Madhya Pradesh, we have incorporated local language features in our ERP. So you can now manage your items, customers and vendors data in Hindi or any local language, and use your own font in the same software.

Q: But we have a culture of mixed language, where we mix Hindi or local language with English. Working purely in a local language can be a challenge.

A: Yes, we understand that, and also that you might need to give the bill/invoice to your customers in local language, but English will still be required for numbers and other practical purposes. That is why we have given this option of mixed language in the software.

Q: The cost of such solutions can be prohibitive for start-ups or early stage businesses. How can companies overcome this challenge?

A: That is why we have started offering our product free for companies below turnover of 1 Crore. They only need to pay for the installation and other services they require. A Fast food café in Pune, recently availed this offer from us, where we gave them free licenses worth Rs.36,000/-, and they only paid for installation.

Q: What if it is a start-up and they cannot even afford the service fees?

A: We have already published installation and other training videos on our Youtube channel ‘Sunwheel Solutions’. Such people can learn from these videos and adopt the solution totally free. We are passionate about empowering Indian businesses, and you will see more training videos with time.

The idea is to provide the best business management tools and take Indian companies to the top. This is a journey for the whole country and lot of things need to be done, and we are trying to play our part.