SPRING CLEAN PRODUCTSMARKET RESEARCH

About the ResearcherThe researcher has undertaken massive market

research in the Asian countries for the last ten years. He has been able to gain vital exposure on how to critically analyze these markets before venturing. The following research report was compiled for Spring Clean Products that wants to open a detergent manufacturing plant in Asia.

The following are the countries I have keenly analysed as potential hosts for the manufacturing site of Spring Clean Products. These are China and Singapore.

Fundamental information on ChinaChina is among the worlds top leading exporters of a wide

array of commodities . it therefore receives significant amounts of foreign investment.

It has a per capita per person of $9844. This is relatively high given the high population in the country.

It is a member of WTO (World Trade Organization) hence the country enjoys enormous benefits due to access to foreign markets. However, its relations with other trading partners is a matter of concern given the high surplus trade and piracy levels.

China has devalued its currency which result in goods being extremely cheap for foreign buyers therefore encouraging export.

The country enjoys a stable political environment.

Fundamental information on IndiaLocated in South Asia.Has a population of 1.2 billion people and is the

fourth largest economy in the world.It has a sizeable middle class. The country has a

GDP per capita income of US dollars 4000.India receives high foreign direct investments and

its now home to globally recognized companies especially I n the pharmaceutical and steel sector.

The country is the largest democracy in the world and has enjoyed political stability

 

Factor China India1. Availability of raw materials

The country is heavily endowed with sodium chloride, phosphate and chlorine. Cheaper than India

India has reliable sources of sodium chloride, phosphate and chlorine which are key essential in manufacture of detergents.

2. Availability of skilled workers and managers

The country enjoys highly skilled labor which is relatively cheap due to the high population

India has highly skilled labor though slightly expensive compared to that of China

3. Potential size of the market including neighboring countries

China has both a big international and local markets. This is because of its export policy and high population for the local market

The country has a large internal market as well as an export market.

4. Trade investment policies

The country is a member of World Trade organizations and complies with most of the WTO policies.

Abides with the international policies spelt out by WTO for efficient trade.

Factor China India

5. Stability of local currency

The country has a devalued local current that makes the goods very cheap for international markets therefore facilitating trade.

The Indian rupee was among the best performance in the world market

6. Cost of transport Despite China’s vastness, it has a good road, air and rail network that facilitates efficient trade. The cost of transportation is relatively lower than that of India

It is a big country with notable investments in road, air and railway transport. It however lags behind China.

7. Government regulation and restrictions

The country has favorable laws and regulations on FDI.

India has a favorable set of laws and regulation on FDI.

8. Competition from locals

There is presence of many competitors but presence of a large market to satisfy

There is presence of many competitors but presence of a large market to satisfy

RecommendationsDespite the favorable business environments

in both countries, I recommend that Spring Clean Products set up a plant in China. This is due to the cheap raw materials, relatively cheaper labor costs and a better road and railway network compared to that of India.

The country also enjoys well defined systems and export routes hence marketing to other countries such as Taiwan, Singapore and Malaysia