Does China Beat India For Sourcing, Hands Down?

Chinese programmers are generally better educated, can get to work on time consistently, don't work in the dark for part of the day, and don't go on holiday every other week.

There are some good things about sourcing from India, that I think are worth mentioning. I started sourcing from India, in 1974. There have been noticeable improvements, but they have been so slow in coming!

1. Indian exporters, having been very exposed to Western buyers/culture/business for a very long time, are much more understanding of Western business assumptions: they take their responsibilities more seriously than Chinese exporters. They understand that they are responsible for quality issues, even when a consignment has been inspected by the buyer. They understand that delivery on schedule is critically important, and understand that they need to compensate if a consignment has problems, or is late. This is not generally true of Chinese exporters.

2. They truly understand long term relationships, and are not so focused on the profitability of each consignment. More so than Chinese exporters, in my experience, they focus on the long term.

3. There is not really a cultural or language barrier: yes is yes, and there is a no: a very clear no, when appropriate; not, a maybe/let's see what happens/its possible.

4. There is a greater widespread understanding of their customers' customers: What is acceptable to consumers in different countries in terms of packaging, quality, hidden manufacturing defects, safety issues (lead in paint/trace metals in children toys),

5. Indians, overall, are more creative than Chinese factories. New designs/items are created and plugged into their potential markets. Creativity is real, in India, and they are not looking to copy, but to create something new. IP issues are dealt with in a more "normal" way. Copying is not appreciated. The legal system in India is frustrating slow (I am involved in a property dispute which has been in court for 28 years), but the laws are very similar to English/America laws, which is still not true in China. Contract law works, is enforceable, and predictable. Consumers and businesses are protected from both suppliers, and the government: be they domestic or international.

6. Everyone speaks English, and many, better than I!

7. By and large, exporters say what they mean, and mean what they say.

8. China and Vietnam are the only two countries I know of who try to control which companies can export (through the need for an export license). The original theory that this would insure only quality shipments, has not worked in either China or Vietnam, by the setting up of both state owned and private trading companies. In India, anyone can set up from scratch an export company at a cost of less than USD $ 500. This seems to be a better system, and is ultimately less expensive for the buyer.

9. With all major international banks having branches in India, and very professional Indian banks, international trade is much more efficient than in China. Buying without L.C.'s or a 30% deposit, is much more prevalent in India today, than in China.

Each country has its unique advantages. It depends on what you are looking for, and what is important to you. There are items, particularly in the textile area (clothing and home textiles), which are available from India, and not from China. Uniquely Indian type fabrics. I have exported textiles from China to India, and have sent bed covers from India to China to be stuffed with feathers in China to be shipped to Target Stores.

Just, be careful, in BOTH countries, that you know in advance, what you are getting yourself in for: be prepared, and protect yourself, in advance.

Hi
I would love comments on this on the website.
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http://www.openthemagazine.com/article/international/red-storm-rising

Regarding Aliuser's comment: I think this a factually incorrect statement.

Sure, all countries use raw material from other countries. China imports both iron and coal from India, but this does not mean India makes Chinese cars, or provides electricity to China.

In any given year, I visit 20 trade shows, from New York to Hong Kong, and always make it a point of visiting Indian vendors' booths. I have yet to see a PRODUCT being sold as Indian, when in fact it was made in China. But yes, there are Indian traders who do sell Chinese products, as well as products from other countries, and always admit when questioned, that they ARE Chinese products. There is no pretense that the products are genuine Rolex watches.

It''s interesting topic, we need to wait and see for few years now. But I think both countries have plus and minus and together will be growth engine for the world due to huge manpower availability.