MARKET RESEARCH

About the Researcher The 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 China China 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 India Located 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 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

FactorChinaIndia 1. 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 policiesThe 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.

FactorChinaIndia 5. Stability of local currencyThe 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 transportDespite 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 localsThere is presence of many competitors but presence of a large market to satisfy

Recommendations Despite 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