India, with its rapidly growing economy and geographical advantages, is beginning to be an important destination for global Chinese investors.
Traditional China-India cooperation was mainly focused on the field of import and export of goods. But due to the changes time has brought upon, industrial synergizing has become the focal point of the tie up between partner countries.
One perfect example of the emerging trend is the development of Paytm.
Paytm is an Indian e-commerce payment system and financial technology company, based in Noida, India. It offers online use-cases like mobile recharges, utility bill payments, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and educational institutions with the Paytm QR code.
It started off as a prepaid mobile and DTH recharge platform, and later added data card, postpaid mobile and landline bill payments in 2013.
According to Vijay Shekhar Sharma, the founder of Paytm, just three years ago, his company was only a mobile payment company with just 25 million users and limited application scenarios. But through the strategic cooperation with a major Chinese e-commerce company Ant Financial Services Group, Paytm is in a very improved state.
The Chinese and Indian market’s common ground appears to be population structure, consumer habits and business scenarios and what Ant Financial Services did is get Paytm an already working development strategy in China and have it applied to them.
As a result, Paytm has now become one of the world’s most popular e-wallet applications. It has over with over 300 million users, covering a wide business scope. It has become a powerful e-payment platform aiming to make its users enjoy the convenience of digital time.
The same trend have taken effect in home appliances manufacturing Haier India is now
Product Director of South Asia of Haier Group Huang Decheng admits how the Indian market is specifically different from the Chinese one that importing items and just selling them isn’t enough, in fact a failed strategy at that.
As a response to that obstacle, Haier India shifted its business model from being a trader to becoming a localized manufacturer in 2007. Because of its strong research and development strategy, Haier India succeeded in producing home appliances tailor fit for the Indian consumers.
Haier India started making air conditioners with rapid refrigeration in 2015, inverter air conditioner by 2017 and self-cleaning function to air conditioners last year were quite a big hit in the Indian market.
With the same goal set, Kingfa India was established in 2012, under Kingfa Science & Technology Limited who specifically focusing on research, production and sales of high-performance materials. It has effectively combined the local manufacturing capacity and the Chinese material plastic technology which makes it a leading material manufacturer and has expanded business to New Delhi and Pune.
General manager of Kingfa India, Bai Jingen said it all boils down to converging strengths of both sides, making use of the advantages to help the company gain strength in the Indian market.
Indeed improving synergy between research and development and manufacturing on the other plays a very important role in enabling the new form of cooperation to achieve favorable results.