Smart phone migration why Foxconn, Xiaomi and Huaw

Smart migration: Why did Foxconn Xiaomi and Huawei go to India?

recently, it was reported that Xiaomi has realized the production and delivery of smart in India. It is also Foxconn's factory, located in Andhra Pradesh. Not only Xiaomi, Xiaohualian (referring to Xiaomi, Huawei and Lenovo) will produce its own products in India or other parts of the world

the company recently held a mobilization meeting to mobilize people to go to India. The treatment of employees in China will not be Indian, even higher than that in China. Of course, there will be good jobs. Even with such favorable conditions, people are still reluctant to go to India. Not only are their living conditions inferior to China, but more importantly, it is a strange place

on July 22, a senior executive of Foxconn, who asked not to be named, described the major moves being made by Foxconn in an interview with the 21st Century Business Herald. He said: Although few employees go to India, the company still tries its best to persuade Chinese employees to work in India. The goal is to Train Indian local workers and support Indian factories

over the past three decades, Foxconn has been the world's largest OEM and the biggest beneficiary of made in China: so far, Foxconn has built OEM plants in Shenzhen, Hebei Langfang, Henan Zhengzhou, Sichuan Chengdu, Shanxi Taiyuan and other places in China. Except Langfang, the above-mentioned factories have more than 100000 employees and more than 1.2 million employees in China

Wei Lai, vice president of Xiaomi technology, said in an interview with the 21st Century Business Herald: with the globalization of the company's product sales, other resources of Xiaomi will also be allocated globally. As for the distribution of manufacturing resources, the nearest market is the most important principle. Only in this way can the transportation cost be greatly reduced, and the import tariff of spare parts is far lower than that of the whole machine

competing in India

recently, the news that Huawei obtained approval from the Indian government to carry out handheld device manufacturing business in India has attracted attention

Foxconn released relevant news on July 15: Foxconn, the world's largest professional manufacturer of electronic products, said that it would expand its development in India on a large scale. The company plans to build 12 factories in India by 2020 and employ up to 1million local workers. It is rumored that its investment will reach 20billion us dollars

the above Foxconn executives confirmed the news that Foxconn would set up a production line in India

Foxconn is the largest private business employer in Chinese Mainland, and also the largest OEM of Apple iPhone and iPad devices in the world. It operates more than 10 large factories in Chinese Mainland, with up to 1.2 million Chinese employees, accounting for the vast majority of its global employees, making great contributions to China becoming a world factory

in addition to apple, Foxconn also contracts for Xiaomi. In 2014, apple ranked second and Xiaomi ranked fifth in the global ranking of smart shipments. In addition, Foxconn also OEM for PC manufacturers such as Lenovo, Dell and HP. Foxconn's plant in India has been interpreted as having two meanings: first, Foxconn's global distribution of resources and de sinicization; Second, it manufacturing resources such as intelligence and PC are globalized, and the mark of made in China will become increasingly blurred

in addition to Foxconn, Huawei, the world's fourth largest manufacturer of intelligent shipments, will also build factories in India

on the topic of going to China and the global layout of IT manufacturing, 21st Century Business Herald interviewed other contract manufacturers, including relevant principals of Nevada, ASUS, Wistron, etc. On the one hand, they emphasized China's dominant position in the global manufacturing industry, such as the maturity of industrial workers and the geographical distribution of the supply chain. At the same time, they also said that the company has no plans in this regard at present

why is India the first stop for the global distribution of manufacturing resources? The above Foxconn personnel said: the most important reason is the huge imagination space of the Indian market. India is a large country with a population of 1.2 billion. According to the population growth rate, it may surpass China in the future. According to the data, in 2014, India shipped 275million mobile devices, accounting for 14% of the global market, making it the second largest mobile market in the world. However, only 81million smart phones were shipped, and the penetration rate of smart phones was only 30%. Compared with the increasing saturation of the domestic smart market, India has huge imagination space. According to the principle of market proximity, brand manufacturers are also willing to place their factories in India

on the contrary, China's smart penetration rate has exceeded 90%. The Chinese market shrank for the first time in six years in the first quarter of 2015

at present, Huawei, Xiaomi, Lenovo, ZTE, vivo, oppo, Jinli and Yijia have begun to sell in India. Xiaomi, Huawei, Lenovo Motorola, ASUS and other companies have launched a large number of Android priced at $150 in India, ranking high in the sales volume of e-commerce stations

in terms of global IT resources, this is the second battle between dragon and elephant: the first time occurred after 2000, the global software industry rose, and India became the world's largest software industry external undertaking because of its language and other advantages. China tried to cut into this field, focusing on the development of software outsourcing industry, and even established various software parks throughout the country, such as Beijing, Dalian, Xi'an, Chengdu, etc., including Neusoft, Huaxin Haihui and others have become the key support objects of the state, giving various very preferential industrial policies to software outsourcing. The final result was that India was the winner, and China failed to take the position of the world office from India

this time, there is a difference. It is the rising India that launches an attack on the leading made in China; Another difference is that China is in the process of industrial transformation, and its attitude towards manufacturing has changed, while India is actively striving for it. What will happen? These Foxconn executives believe that it is still difficult to draw a conclusion

global layout

the above Foxconn executives revealed that except India, Foxconn has built two factories in two provinces in Vietnam, and has decided to build a factory in Brazil. At the initial stage, it decided to invest $2billion in the direction of the movement of the prefix 10, which is opposite to the direction in the tensile test. It is estimated that more than 100000 employees will be employed. The president of Brazil met with gou personally, invited Foxconn to build a factory in Brazil and offered various preferential policies

the executive said: it costs at least 10 yuan to transport from China to Brazil. The high cost is 30 yuan when it is high, and the selling price in Brazil is generally about 500 yuan. Such high transportation costs account for a considerable proportion of the whole cost composition, greatly compressing the profit space. A plant in Brazil can solve this problem

in addition, the export of branded complete machines to Brazil is related to tax protection, while the establishment of factories in India can lose the minimum three items of tariff cost, because the government will provide various policy subsidies to stimulate employment

Samsung is the manufacturer with the largest intelligent shipment volume in the world, and also has its own manufacturing resources in the world. At the end of last year, the Vietnamese government said that Samsung Electronics' US $3billion investment and plant construction plan in the country has been officially approved, and Samsung's total investment in Vietnam will be increased to US $11billion in the future

the local media in Vietnam estimated that Vietnam would be responsible for producing more than 40% of Samsung by 2015

in addition to Samsung, in the past few years, the manufacturing departments of Intel, Microsoft, LG of South Korea and Panasonic of Japan have also extended to Vietnam. According to Vietnam's official data, Vietnam exported 19.2 billion US dollars worth of products and accessories in the first ten months of last year, an increase of 8% compared with the same period of the previous year. The export of Vietnam and its accessories has exceeded its export of clothing and textiles, which accounts for 16% of Vietnam's total export

the above Foxconn executives believe that the establishment of Foxconn factories outside China is the result of the joint efforts of several major trends. The first is the transformation and upgrading of China's economic structure. The status of traditional manufacturing industry is being replaced by modern service industry and scientific and technological innovation industry; The second is the disappearance of China's demographic dividend. China used to be the country with the lowest labor cost and the largest number of labor. Now the labor cost is much higher than that of other countries, such as India, Vietnam and Indonesia

in terms of labor cost, the cost in India and Vietnam is only a quarter of that in China, and the monthly salary of Brazilian workers is only about 800 yuan. In China, the wages of factories must be at least 3000 yuan. What is more troublesome is that with the rise of other industries such as service industry, it is difficult for manufacturing factories to recruit workers; Other industries have higher incomes, such as express delivery. It is not difficult to earn 8000 yuan, or even more than 10000 yuan. The income of construction workers is higher. Since 2008, labor shortage has been plagued by Foxconn and other big Mac manufacturing enterprises