Kareleo Business Centre

Posts Tagged ‘China’

India’s great economic rival China is one of the most preferred markets, the study suggested.

“Business confidence in India is low,” admitted Phani Sekhar, a fund manager with Mumbai-based Angel Broking .

“(The lack of reform) is taking the sheen out of India’s growth story,” added Sonam Udasi, head of research at brokerage IDBI Capital .

Experts say the government has dithered on pending reforms in infrastructure development, retail, banking and the fuel sector.

Meanwhile, inflation — up to 9.06 percent in May and well above the RBI’s “comfort level” of 5.0 to 6.0 percent — driving up the cost of funds and risking a delay in investment in key sectors.

The latest interest rate rise comes at a time when fewer cars are being sold, cement sales are slowing and steel imports have dipped.

Economic growth slowed to 7.8 percent in the three months to March — its weakest pace in five quarters — while growth in industrial output in April halved compared with the same period last year.

IDBI Capital’s Udasi said the government’s disinvestment plans are unclear and with fuel subsidy burdens rising, the fiscal deficit target of 4.6 percent looks “grim”.

“Investors are disappointed by the lack of tough decisions from the government, adding to the nervousness,” said Angel Broking’s Sekhar.

India has deregulated petrol prices but continues to offer widely-used diesel fuel, cooking gas and kerosene — known as “the poor man’s fuel” — at heavily-subsidised rates to the public.

The government has dithered on hiking diesel and cooking fuel prices, possibly fearing a backlash from opposition and the millions of India’s poor, who are already struggling to cope with high food prices.

That comes on top of a series of corruption scandals, including a multi-billion dollar telecom licence scam, that has put the government on the defensive and troubled foreign investors.

The Bank of Korea may need to slow the pace of interest-rate increases after its fifth move since July 2010 last week because of rising risks to the global economic outlook, a board member said.

“The external conditions are much more uncertain — if the uncertainty deepens, we may have to slow down our pace,” Kang Myung Hun, one of six policy makers who votes on rates, said in an interview at his office in Seoul yesterday. Kang also cited the danger of boosting rates so quickly that the bank detonates a household-debt “bomb” that causes a property-market crash.

Kang’s view reflects concern across Asia that the world economic outlook is deteriorating, with the Reserve Bank of India yesterday citing increased unease over the European debt situation. China and the Philippines have opted for raising bank-reserve ratios in the past week rather than benchmark lending rates.

Inflation pressures have prompted Asian central banks to be among the quickest to withdraw monetary stimulus as growth accelerated following the 2008 world recession, and Kang yesterday indicated the BOK will have more work to do.

“I don’t think we can tackle mounting inflation expectations with this one hike,” said Kang, 57, referring to the BOK’s rate increase on June 10. “Although I voted for an increase this time, this does not mean that I’m more optimistic about the economic outlook,” he also said.

9. Give your customer what they need, but not understand.

Something that distinguishes the Chinese entrepreneur, is that with a single client who asks for a product they do not, a few hours and are looking for the supplier to serve this product. Customer always listen and try to supply you all kinds of products, some more defendants and others less, but if there is anything that can be sold and a single buyer, why lose a sale?.

10. Saving work and live in poor conditions even for a few years.

Why do they get saved and we see a major problem for it? The answer is simple, and they are willing to accept sacrifices for us we would not ever. They live in houses of 70 square meters to 20 people, so they rent out very cheaply. They have no bank debt, which are our worst enemy.

Therefore, as it is said in the documentary, if a Chinese cobra 600 euros, quietly can save 550 €. No go, they do not luxuries, and still have money, do not live like the rich . Once they reach the goal, and allowed all the luxuries for that one day they fought.

They are an enviable community and we would have much to learn, because it is more than obvious that their system works.

7. Do not ever ask a bank loan. Family and friends will not charge interest.

This point is unthinkable in Spain, because of our culture. The Chinese working and saving for years without spending any leisure. As stated in the documentary, if a Chinese need € 15.000 to open for business, as has 15.100 be released. If you need something more, ask for the money to relatives, friends or your own “competition” and receive funding without problem, but borrow from the bank, ever.

8. When an area is saturated, find another. Identify business opportunities.

Spain is experiencing a crisis tremendous, businesses close, there is no funding and achieve the 5 million unemployed. The system fails while the Chinese opened a profitable business , employ and grow and today is the sector that per capita, more self-paid insurance. They do not see the crisis, on the contrary, are many business ideas .

Wherever Spanish business closes for lack of profitability, they grab it and make it profitable.

China came in with restaurants specializing in “Chinese food” and with the entrance of the crisis, it is true that some had to close, while others are expanding. Changed the central business system by bazaars and shops around a hundred, where to be served by their own people, they get competitive prices that make the Spanish bazaars.

Now they have seen the business opportunity in Spanish bars, where joining the friendliness, cleanliness of the premises and excessive attention to the customer, are having a well-deserved success.

In short, find business opportunities in a country where we are not able to find them.

4. Competition is healthy.

While the Hispanic afraid that opening a similar business before him, the Chinese happy. Knows that the more such ventures to open, a sign that matched with the business and going offline. The Chinese themselves call each other to inhabit deserted streets and fill them with their business. In 4 months can get to create a Chinatown, making shopping streets where before there was only confined areas.

“If we call customers when they come, I not only buy from me, but also take advantage and buy my friend’s business.”

5. Do not settle for a single business.

One problem with Hispanic entrepreneurs is that having a business only ends up becoming a slave to your business . The Chinese used a different strategy, which is when he spends much time in a single business, even as a good sign, because it knows it has a profitable business , usually open one or two more business. Thus can not spend all day dedicated to a single business, and automatically becomes a full-fledged entrepreneur.

6. To work, the better Chinese.

We explain this point, because in the film does not refer. Where we see exploitation, where a Chinese worker charges 20 € a day without insurance, they see a business collaboration is that each worker who starts next to a Chinese entrepreneur, eventually, the same entrepreneur will finance the project of its employees.

A Chinese is not exploited, say to help the entrepreneur to grow and build the business. When business is going well and these workers are experienced, they launch the venture and hire new workers for a meager salary. These workers, around 5-6 years start their own business.

The Chinese are hardworking, thrifty and full-fledged community. Their culture based on honor, do not be afraid of being betrayed by a person who helped and employed. Taking a case like this, the Chinese would be expelled from the community and never would be supported by any member, in fact, invite him to leave the country “dishonorably discharged” as in the military.

Already published in a previous article, the full documentary ” The Secret of the newly rich Chinese , courtesy of Antena3 Research Team. You can see the documentary by clicking here . We focus on the 10 commandments Chinese entrepreneur and explain each point to, that in this way, we do not think that the way to succeed in business is due to luck, exploitation or simply by chance.

See that their culture is based on honor, hard work and defining a target in the medium to long term. Any Chinese entrepreneur or not, as a “shame” a lifetime working for someone else, and that is why we take the venture in the blood. With this attitude and with some initial sacrifice, they make a difference and make it possible for his country is ready, if you have not already achieved, to become the first world economic power, while in most countries, we prefer give us some luxuries in the future causes us to live near the poverty line. Here are the 10 commandments Chinese.

1. Choose a good location, in a good place, but cheap.

Part of the success of the Chinese position is in the business. Do not bother to make a strategic plan, but use common sense to know whether the local will be successful as people pass through the area there.

Negotiators are born, so probably looking for a local rate where the landlord has managed to capitalize, missing the type of business you mounted. Negotiate the price with no mercy. they know what they are willing to pay, and will not pay one euro more than they had thought. The advantage to the tenant is that the community knows that China has until now a 0% default. Not known at present neither a Chinese entrepreneur who has failed in the rent.

2. Begin to undertake as soon as possible.

The average age of Chinese entrepreneur is in the 23 years, although some do in 18. They are not afraid and know that the worst that can happen is that the business fails, which will give them experience for next business.

The Spaniard does not take in most cases because of this fear, and they believe that fear is an obstacle unnecessary.

3. Not being attached to the business. If not, change.

They do not like fighting against the current. If a business is wrong, do not expect to accumulate debts. A Chinese want your business will begin turning a profit during the first two months, and the business should grow at least 20% over the next 6 months. Otherwise, do not hesitate to take the blinds and change the type of business.

The Spaniard often make the mistake of wanting to raise the business “for noses” and when you agree, closing ends with a staggering debt accumulation. As I said Donald Trump , business is business, not a child.