Thursday, September 30, 2010

The New War

The world of business has many wars going on. Some wars may be between companies to retain customers. Others might be for industry rank, corporate sponsored consumer activism, consumer relations and visibility or a plain old conquer and destroy goal.

Within each industry, there are always geographical advantages certain countries can have that can contribute to domination in certain economic goods. For example; Ecuador (with its tropical climate) being the largest banana exporter in the world and Middle Eastern countries producing two thirds of the worlds oil reserve is due to their geographical coordinates. In granite production, there is a well known fact that India and China are now some of the largest producers of granite products. It is no coincidence that China and India lie on active geological fault lines and that contributes to the fact that some of the biggest quarries in the world are in these two Asian countries. Granite is an igneous rock (formed through the cooling of lava) and takes millions of years to cool and rise up the earths crust but, can do so faster in these overly geologically active countries. The granite is plentiful here. The Chinese and Indian people have been using granite for thousands of years to build temples, make tools, pave roads and, landscaping. Granite export has been a great factor in the economic rise of these two powerful countries and the West has been quick to embrace the imported products at great prices.

Granite is produced all over the world but, China and India have taken the production and export on to the grandest scale. Some countries that produce their own granite can't even compete with these two giants of the industry. I have been doing some research into the Swedish market's take on granite products. Having gone around Southern Sweden and speaking with business owners, marketing directors and different importers about their opinions on the current granite products on the market, I have come to find some common interpretations from the individuals involved in the sale and distribution of granite.

1) Most consumers are completely unknowledgeable about the granite industry
2) Most Swedes are weary of Chinese products due to the negative publicity in the media
3) Most consumers will pay more for a Swedish granite stone over a Chinese one
4) India has improved their reputation in exported granite materials and products into Scandinavia

Overall, I have heard it time and again about the stigma Chinese granite has due to the quality in production and overall business practices from the granite Chinese exporters. Their pricing has not been the problem. The Chinese can give you some of the lowest prices on the market but, the Swedish importers commonly state "you get what you pay for". The quality is low just like the price.
Indian granite has been making its mark. The Indian exporters must have picked up on the fact that they needed to step up their game to compete in the industry. Indian granite has been consistently praised for quality and price. From countertops, to floor tiles, the Indian products have been winning over the Swedish market.
The Chinese have some serious public relations damage control to do here in Sweden. If the Chinese wish to maintain a legitimate presence here in Sweden, the individual companies exporting granite will need to raise their standards and conduct frequent multi-level quality checks to assure they maintain their customers happy. They must also be able to relate to the Swedish consumer on the level of customer satisfaction and service. For now, I can proudly say that I will stick with my Indian counterpart because I can clearly see who is winning this war of consumer appreciation and repeat buying in Sweden.

No comments:

Post a Comment