Why are Micromax phones ‘made in China’?

Published by blucejum on

Why are Micromax phones ‘made in China’?

China and India are the two largest developing countries. We got lot of sourcing request from India every week, most of them inquire the price for electronics, power tools, cell phones and accessories, they want to buy wholesale from China to India. What interesting is that some Indian sourcing agents and purchasing companies want to source Micromax phones from China(Our agent fees is very low). Yes, Micromax phones are made in China, but it is not sold in Chinese market. There are many reasons why are Micromax phones made in China.

  1. Cost effective, which can help Micromax phones company earn more money, the more the better.
  2. Availability of raw materials, China has built supply chain for all for cell phone products, you can buy anything in China.
  3. Easy transportation, China’s ports have shipment every where, to india, to Africa, to Latin America, you can ship the goods any time you want.
  4. Hard-working of Chinese, we can work 16 hours every and no weekend, which is impossible in india.
  5. Supply chain, you can buy any components here.
  6. Shareholders ask to made in China, which can offer good quality, because iPhone are “made in China”.

 Those are some reasons why are Micromax phones made in China.

Why aren’t Micromax phones “made in India”?

Here is an answer from my India friend.

  1. We don’t have large-scale electronics component manufacturing. We barely make resistors and capacitors. It’s a long way to build an eco-system of electronic components manufacturing before actually making Devices. China strive for it with government subsidized Industries.
  2. We still don’t have the concept of manufacturing clusters and cities making into economies of scale.
  3. Labor is cheap in India compared to china but, Labor is untrained and unskilled as well. We don’t have good training for the workforce.
    Cost-effectiveness comes with all 3 of them. Also the industry needs to be protected. India has a policy of stifling its own industries while laying a red carpet for overseas ones.

You should have known why India customer want to import and wholesale from China after reading those aswers.

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