Today's Topic about what consequences does BIS systerm effect India Market!
Do you feel particularly bothered by your recent partners in the Indian market, especially those involved in the newly added products required by the BIS certification system? Maybe the customers who have been working together stably before will suddenly say to you: is your product in line with BIS certification now? If not, we may have to stop cooperation.
Many domestic suppliers hope to occupy a certain market share in the high-speed development stage of India, especially when the current international market is not ideal, the Indian market is relatively stable and relatively superior. However, because the Indian government also hopes to increase the development of local manufacturing in India, it also presents many new challenges to domestic exporters, such as expanding the product range of BIS certification system, so as to protect some local manufacturing enterprises and encourage some importers to transform into independent manufacturing.
Be advised by some part of our customers have also suspended cooperation with some importers due to bis certification of some electrical machinery products. But because the Indian market is one of the main markets developed by our company, of course, we will not easily give up the expansion of this part of products in the Indian market. What are the specific solutions to this policy for our company?
Before talking about solutions, let's first understand what is bis certification system. First of all, it is not the certification of products, but similar to the domestic ISO certification of factories. The products of factories passing bis certification can be marked with ISI. Secondly, BIS certification is only a domestic certification in India, not an international certification, so only Indian factories can apply for this certification. So we give the following two ways to different customers.
For Indian customers who already have factories, we will first suggest that customers import in the way of SKD, and then the domestic suppliers provide corresponding technical support, and the customers' factories assemble. This way, not only solves the export problem of domestic suppliers, but also wins more favorable market prices for domestic purchasers, because in terms of the current national development level, India's labor cost is much lower than that at home, so customers can finally get a more advantageous price, which also meets the requirements of independent production that the Indian government wants to see.
In addition, domestic factories apply for BIS certification, requiring domestic suppliers to register and establish companies in India. However, if this method is adopted, it will inevitably involve difficulties in personnel management and quality control, and the manufacturing cost will be greatly increased. Therefore, it is also possible to consider cooperation with local reliable local manufacturing enterprises to provide raw materials and technologies at home and take charge of production and management at abroad. However, the risk in this way is relatively large, because if the selected partner fails to reach the original domestic production technology level, the reputation of the supplier will have a great impact, so I believe in this exploration And in the process of selection, there must be a phenomenon of supplier shuffling.
Recently, because some Indian customers who have contacted for a long time have suddenly been very warm to us, and they have been very active to learn about the current bis certification of electrical machinery products, so I think this is a challenge for Chinese suppliers, which will bring a big reshuffle for domestic suppliers in this market, but at the same time it will also be an opportunity. Therefore, the suppliers who are committed to the development of this market are worthy of efforts to understand and find the right solution.