business strategy - chess competition

India v/s China in chemical trading business


With fastest emerging leaders of the world, fastest growth and development. China and India have become a massive sourcing hubs for all kind of industries. Especially for textile industry, their trading rivalry is very much famous around the world. Both of these countries have abundance of reasons, capital, skilled human resources, technology and globalization. Moreover both of them have stabilized government and economy. Both of them have very strong demand, infrastructure, and state of art technology, affordability and attitude.

For the both countries textiles and apparels are one of their main industries.

  • In spite of lot of similarities, both of them have lot of different unique skills and resources which are the backbone of their competitiveness. Let’s talk about their competitiveness.
  • India is very famous for their quality driven approach, but china has always driven with quantity approach.


  • India’s product comparatively costlier than China’s.
  • Lot of specialized fabrics, India required outsourcing from China/ Honk Kong/ Bangladesh to fulfill their customer’s requirements. But China has specialty in all and each kind of fabrics due their vast technology and diversified approach.
  • In India export business is concentrated in Delhi, Tripur, Bangalore, Gujarat, Ludhiana and Chennai. Due to their connectivity to transportation system. But in the case with China, due to Hong Kong which makes the China more competitive, approximately 60% of business across the globe runs from Hong Kong. All kind of buying meetings and buyers-sellers fairs usually are organized there.


  • India is more specialized for high-end apparels which pertains lots of handwork, smocking, embroidery, fabric printing, placement printing, chiffon and Georgette fabrics, but China is more specialize for casual and simple garments which little or no embellishments.
  • India has diversified factories in the sense; they are capable of handling small lots to bulk lots at the same time. But China is more towards bulk lots due to their big factories and specialized labor for operations.
  • India is much capable to handle all kind of countries and their communications due to their skill full English speaking workforce. China lacks behind in communication, so their business houses and head offices are more concentrated in Hong Kong due to availability of English speaking work force.


  • India counterparts are much flexible in considering and accepting changes, alteration, last minute modifications with minimum or no up-charge; but Chinese counterparts are rigid or less flexible in accepting last minute changes. Any change accepted considering their extensions in deliveries and up-charges.
  • India has higher labor costs due to minimum wage rate set by the Central and State Govt. Also the prices of raw material are shooting high day-by-day. Yarn rates, printing and weaving rates, accessories rate are going high, due to importing accessories and high overheads. China is not behind form this high cost problem, but due to production of bulk lots, they achieve economies of scale, they are not dependent on imports of accessories like India. So there costs are comparatively low.

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