Head for India, not China, says brand guru

February 2008: Top brands are looking in the wrong direction if they view China as their long-term business expansion plan. That’s the opinion of Allan Biggar, head of European business development consultancy, All About Brands.

As UK Prime Minister Gordon Brown set off on a trade delegation to China, Biggar commented:

"China will have absolutely no qualms about quickly buying in everything it needs to build an infrastructure, society, design and manufacturing knowledge and capability base focused on a handful of its key business sectors and cities. Its plan is to enable it to sell even more to the West – and as soon as it has everything it needs, the door will slam and the current river of money will dry up. China will be a short-term source of cash, India is a long-term investment.

"Every brand and business with international growth plans should be looking at India rather than China for one simple differentiating reason: China looks inwards, but India looks outwards.

"That China is an enormous economic powerhouse is a myth. It simply has a very big shopping trolley at the moment, and it is maxing its credit short-term. There is no tradition or culture of foreign trade, or looking outside its own borders. It is buying at the moment, and it will buy to put itself in a strong position to sell.

"India, on the other hand, has massive potential for the big brands and businesses of the West – way beyond that of China.

"China thinks ‘growth’; India thinks ‘trade’. While there has been massive criticism of such innovations as Indian-based call centres, you don’t have to dig down too far to recognise the significance of the principle.

"Indians appreciate Western standards and have well-established connections with Europe and more recently with the Middle East and North America – and the desire is deeply-seated across the country. My message to business and brands is to use China short-term, but don't put it on your long-term business plan,” added Biggar, former global CEO of major PR agency Burson-Marsteller Corporate and Financial.

Biggar’s comments were welcomed by Dharti Desai, CEO of Regency Direct Marketing in Mumbai and Mail Order Solutions India. She told DMI: "India’s economy is growing rapidly and attracting huge high-tech infrastructure investments. With a great number of fresh graduates, an increasing amount of engineering, manufacturing and architectural innovation is being generated in India.

"China may tout Business Process Outsourcing (BPO) as well but does not have the capacity that India provides of BPO and Knowledge Process Outsourcing (KPO), which is a tremendous combination. Global auto giants are queuing to do innovative design engineering in India.

"When it comes to mass production at throw-away prices, China will always lead, but when consumers want value plus design intelligence and branding, India will flourish.

"India has the ability to look outward and inward – which is why, in three years, more than 98 per cent of the brands I used when I lived in the USA are today available in India.

"It will be very interesting to watch these two strong economies battle it out."

Source – FineWinesnMore.com