What They Should Do First

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The challenge of China and India market entry has become a gradually important for most of Western companies of all profiles and sizes. Despite a tough economic climate in US and Europe, China’s and India’s economy has sustained to grow by double digit rates over the last few years. China poised to surpass US as the 2nd major global economy by 2020 and India will become the major player for global growth. So proper planning should be done by companies to enter this complex markets.

China and India

1. Recognizing The Market

The Housing markets in different regions of China also varies significantly, which means our company should think judiciously about which location offers the best location for our project. In China, they should consider Guangdong, Jiangsu, Zhejiang and Shanghai, because of higher populations and incomes in those areas. In India, they should consider Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kochi, Pune and Kolkata. HNMC involved in housing markets have to focus on these developed income coastal regions in China and in India they should look into IT regions.

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1. Choosing A Location

HNMC should look into extremely populated areas, middle class number should be high and income levels should be more than national average.  Tier-1 cities, In India and China has got greatest mature markets in terms of Middle class housing.  Tier-1 cities have got the less entry risk for companies in India and China. It will reduce operational cost but there will be higher competition. Most of the local company have more advantage over foreign companies in this area.

1. Government Policies And Regulations

Government regulations can often influence significantly during different time period and expenses of market entry. The best choose for HNMC would be joint venture with a local company. This will help to improve the existing sales, increase the sales and reduce operational cost. Production cost can be reduced and customer base can be increased. More control over project but profit margin will be very less. They will have less risk on government policies and risk. But there are less disadvantage also, like finding trustworthy partner and they should agree to some condition with local partner. This will help the company to pay less tax to the local government.

1. Do Market Research

Market research should be done within the country to find different customer requirement and expected cost by the company. This will help to provide a marketing advantage over the competitor. In china and India will be less aware of the Australia brand named HNMC so they should be able to advertise it properly. They should look into the future trend and other design factor required in market. Special tailoring can be done in this market for long run.

1. Recruiting Staffs

Hiring staff will not be great deal when we look for joint venture with local companies. We will get more local language speaking staff in the region which bring more advantage for the company. Quality of good staff play a major role in development of the company. Local government support will play major role in development. The local company will have existing networking channel which help in increase in sales of the company.

1. Should develop International Property Rights Strategy

China has a "first to file" patent system (it is likely for local Chinese companies to record different company's patents even if it is not the developer of that technology).  Also, time restrictions on recording patents in China. So companies that listed their patents externally in China greater than 12 months before are usually incapable to record their patents locally in China. China also has a "first to file" trademark system (a foreign company's valid logo and brand cannot be used if it already exist in china.  So HNMC should register their trademarks with the China Trademark Office as fast as possible.  New Entries should make sure that Trademarks are translated in both English and Chinese languages.

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1. Progressive Decision Making for Strategic Alliances

Progressive Decision Making for Strategic Alliances, this can also be used for HNMC in strategic alliance in India and China. They can look into global opportunities, regional opportunities (demand), historical performance, competitive positioning, develop human capital, increase financial assets, company structure and daily operation procedure. However, while larger firms, with their considerable global experience and clout are adept at many of the requirements for entering overseas markets, entry for SMEs into new and complex environments is often perceived as risky if not daunting (Etemad 2004). PRODEMSTA model is projected and discussed as a method for investigative overseas alliance feasibility.