How to start a monopoly business in India
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You have the monopoly when you manufacture certain products that no one else could produce, or when you are selling certain products at the lowest price in the market. Also, it may be that the product in demand is only with you and no one else is selling.
It is actually very simple to start a monopoly business in India. As you know the biggest manufacturer in the world is China. China is the source for 80% of the products sold in India, whether its electronics, gifts, toys, home-based products, or anything else. This is because there is hardly any manufacturing in India except clothing, but here also China supplies the textile machines, to make different types of clothes, to Indians.
Most of the products sold in India are imported from China. You may find many Indian brands sold in Indian markets. But actually they import from China, and they ask the Chinese suppliers to put their own brand name, through OEM, on the box of the product. This is because creativity is there only in China. They have that robotic mind to produce anything and they are the manufacturing hub. Three major countries Japan, China and Korea are the source for 70% of the world's products. Even the USA and UK import from China and Japan.
It's really not difficult to make a monopoly business in India if you start importing from China. There are millions of products sold at alibaba.com by the Chinese people. You will find 90% of Chinese manufacturers selling directly on alibaba.com. So you can easily start by looking at alibaba.com for products you want to import. Since you will be directly importing from the manufacturer in China, it's sure that you will be having minimum cost when you will sell in India. The time is gone, when you needed to buy a full container to import from China. On Chinese sites like dhgate.com you can even import 5-10 pieces to start with. Also on alibaba.com you can easily find suppliers from China, who can send you 50-1000 pieces of any product you want to import.
But to have a monopoly in the Indian markets, you need to have your products at a minimum price, so that retailers can buy from you. But best is to have your own retail shop if that is possible. So when you import directly from the manufacturer in China, and if you are having your own retail shops at different locations in India, no one can stop you having the monopoly, in terms of prices and quality of products. It's not that Chinese quality is not good. Many top brands like Dell and Samsung are also getting their manufacturing done in China, just they make it their own brand.
Similarly, you can also ask the Chinese suppliers to put your own brand name on the product you want to import. In order to lower the costing, some Chinese manufacturers are compromising with the quality, due to competition among Chinese suppliers themselves. 80-90% of the items sold in wholesale in Sadar Bazar, Delhi are directly imported from China. Retailers from all over India come to Sadar Bazar to buy from those importers.
The most important thing, while importing from China, is to minimize the shipping cost. Shipping cost is the real thing that is going to make the difference. But there is a simple rule. More the quantity you buy lower will be the shipping cost. There are many international couriers like DHL, FEDEX etc who are charging a lot, as the items are shipped via air but delivery time is quick. If you can wait for your items for 20-30 days, China Mail can be used where the shipping cost is much lower.
But wealthy Indian importers are smart enough to lower shipping cost even further. They order in bulk, for example, 1000-5000 pieces and they ask for shipping via sea. By sea, the shipping cost is almost negligible. You need to contact your Chinese supplier, and they will arrange the shipping through the sea if you are ordering in bulk quantity. You simply need to tell them the Indian port where you need the delivery. So if you order in bulk and your items are shipped through the sea, it's 100% sure, you can easily have a monopoly business.
Also more the quantity you order, lower will be the cost price of the product, as these Chinese suppliers lower prices to a great extent for bulk orders. But still, nothing to worry if you cannot order in bulk as the scope is still huge. The items sold in China are of millions of varieties, and a single importer cannot have a monopoly for millions of different types of products sold in India. Also, every now and then, new products are being discovered and manufactured by these Chinese people. ok
I would recommend you to visit alibaba.com and sign up, and give a look to thousands and millions of products being sold, and check their wholesale rates, or submit an inquiry for current rates for any product you want to buy. The Chinese people will immediately respond to you, as they are eagerly waiting for customers. Once you will know the wholesale rates of these Chinese products, you will find the same products being sold in India at much higher prices. Check many Indian online websites like flipkart, snapdeal, Jabong etc for rates in retail, and you will be amazed how cheap the Chinese are selling, and how costly they are being sold on retail websites. This is definitely a monopoly business idea for Indians.
To give you an example, a camera shaped cup for tea is sold on alibaba.com here for $2 (INR 140) while the same cup is sold on Flipkart for INR 400 here. You can order in bulk and import from China via sea route to minimize the shipping cost. Then you can sell your items on sites like Flipkart, Amazon, Snapdeal etc. A lot of people are already doing this and making a lot of money. Even the bulk wholesale price you see on alibaba.com are 50% more price than what you can buy at. For example, if the price shown on the cup is $2.5 you can get it down to $1 if you order in bulk say 1000 quantities. Just don't hesitate to negotiate and you will be the winner.
Here are more examples of monopoly businesses
Written by: Rajesh Bihani who is the webmaster of this website. Know more about Rajesh Bihani).
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