We set up local supply chains and manufacturing processes to reduce costs for businesses looking to launch their mobile phone antennas in the Indian market. This reduction in manufacturing cost allowed our clients to stay competitive. We have a well-earned reputation for manufacturing high-quality electronics at competitive prices for the automotive, medical, and telecom industries.
A client in the U.S. specializing in large, high-cost antennas wanted to launch their product into the growing, but highly competitive Indian market. While the product had been successful in its home market, the large shipping costs and expensive production processes of the U.S. made a profitable launch in the Indian market unlikely. This, coupled with the fact that the current specification wasn’t ideal for the Indian market, led them to contact us for help, since a large market for the product already existed. Our task was to refine the product specification, manufacturing method, and supply chain, and to advise on local regulations to allow for a profitable and successful product launch.
The first step to addressing this challenge was to study and understand the original product and the technology it was built on and comparing this to the needs of the Indian market. We created a two-phase plan to bring the product to market at a price point that would enable it to be highly competitive when compared with similar local products. The manufacturing of the product was localized to India, as the original product was large and bulky when constructed, which allowed shipping costs to be significantly reduced, since individual components are much easier and cheaper to ship. Second, we gradually shift the supply chain to India, sourcing components locally wasn’t only cheaper, but also reduced shipping and transport costs further. At this point, the antenna was modified to further suit the Indian market. Some features and functions were removed because, while desirable in the U.S., they weren’t a fit for the local market. This further reduced the bill of materials and enabled the product to be sold profitably.
By localizing the supply chain and modifying the design to suit the local market, a product of similar quality to the original one was produced with a reduction in production costs of almost 40%. This allowed our client to gain a significant market share of the fastest growing mobile phone market in the world. We used our understanding of the local market with that of the product and the technology behind it, which allowed us to re-engineer their product and take it from a loss-leader to a highly profitable offering.
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