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China's Evergrande Group crisis

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So far as manufactured products are concerned, there's also the question of marketing.

If companies perceive that being associated with a particular country is bad for business, that consumers are deterred by it, then that in itself becomes a reason to shift production.

As a simple example, well this battery manufacturer didn't put the country of manufacture prominently on the product by accident. They've done it for a reason and that would come down to marketing. Otherwise, well they could just have put it in fine print in an inconspicuous place on the side if they didn't see value in drawing attention to it. Photo taken yesterday in a supermarket so they're current stock for sale.

1634135613276.jpeg

I've noticed that on quite a few other things lately. The packaging prominently displaying that the product is made in some country that isn't China.

I'm not passing judgement there but business is business. If someone does their market research and finds that consumers would prefer products from one country over another, and both have similar costs to manufacture, well then that probably does tip the balance.
 

over9k

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So far as manufactured products are concerned, there's also the question of marketing.

If companies perceive that being associated with a particular country is bad for business, that consumers are deterred by it, then that in itself becomes a reason to shift production.

As a simple example, well this battery manufacturer didn't put the country of manufacture prominently on the product by accident. They've done it for a reason and that would come down to marketing. Otherwise, well they could just have put it in fine print in an inconspicuous place on the side if they didn't see value in drawing attention to it. Photo taken yesterday in a supermarket so they're current stock for sale.

View attachment 131495

I've noticed that on quite a few other things lately. The packaging prominently displaying that the product is made in some country that isn't China.

I'm not passing judgement there but business is business. If someone does their market research and finds that consumers would prefer products from one country over another, and both have similar costs to manufacture, well then that probably does tip the balance.
Agreed. With that being said, I've noticed that there's a bit of a branding thing like that going on at the moment too where people (and I know I've done this myself with something but I can't think what) will say "It's chinese but it's GOOD chinese" or similiar. Computer parts come to mind but I know there's others.

Kind of like korean cars - korean cars have come a long, long, LONG way. I know I've seen a couple of the mrs's friends ask about some new car one of them bought commenting on how she liked it etc and the other girl responded by going yes, this is a KIA, only to have everyone else respond with astonishment.


Thing is, India's a much more service based economy (think indian call centres) and I can't think of a single indian manufactured/made good I've ever bought unless you count the food, so the ball's very much in their court there I would think - they have a golden opportunity to make a hell of a first impression on the world stage.

I do know they have this: https://en.wikipedia.org/wiki/Make_in_India scheme running but I'm not aware of much else.
 
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China also has great sales channels that India currently lacks, so it may take a while for India to come to sell directly in a world market platform.

I am talking about the global market places like Alibaba. In fact quite a few Indian, Bangladesh and other neighboring sellers sell their products through Alibaba due to the platform's global reach.

One thing that India has as pointed out earlier by @over9k is the young workforce who are very affordable by Western income levels. So I wouldn't be surprised if a few tech giants or other large manufactures set up business branches over there to take advantage of the educated young workers.
 

moXJO

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India has terrible permits and planning. Takes ages to get things done. The guys that get stuff done there are next level. As you have the weight of an incompetent public service and government bodies tied round your neck.
 
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India has terrible permits and planning. Takes ages to get things done. The guys that get stuff done there are next level. As you have the weight of an incompetent public service and government bodies tied round your neck.
And never forget the negative effects of democracy on an economy with a society with a me first mindset.
Brings NIMBY, socialism and tall poppy syndrom..not the marks of a brilliant economy..and bureaucracy in India is a Victorian time left over.
There is money to be made by sheer numbers and youth, we agree but that's different from becoming a world economic juggernaut.
Not sure for example Nigeria is a threat to China or US number one position yet...our neighbour Indonesia has both of these factors too...yet made in Indonesia not really common.
We often forget where China came from, it was a decent power before being destroyed by communism and the brits.
As Germany or Japan were by war.
The key cultural and social elements were in place to reposition back into the economic ladder.not applicable to India in my view
 
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I waited till the close today and on our local front, this week looks bullish actually...

1634276270013.png

This is despite all the Evergrande and other China property developer negative headlines. There was even the rare headline that Australia could be affected by all this... well not a chance right :smuggrin:

I am thinking about looking at trading equities again after sitting on my hands or doing the odd sell of held stocks over the last few weeks. Could the market decline be behind us or could this be a bull trap ?
 
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@over9k the Indian's are starting to get their act together, the Indian motor cycle manufacturer Royal Enfield, recently developed a 650 twin and it is really getting traction in Western markets.
Not only is it a quality product, it costs about the same as a Japanese 250, so it is selling well world wide. As the Korean's have proven, once you get a good product selling, there is a knock on effect.
https://www.rideapart.com/news/433356/royal-enfield-interceptor-top-selling-bike/

Then of course there is Jaguar and Land Rover/ Range Rover
 

over9k

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I waited till the close today and on our local front, this week looks bullish actually...

View attachment 131569

This is despite all the Evergrande and other China property developer negative headlines. There was even the rare headline that Australia could be affected by all this... well not a chance right :smuggrin:

I am thinking about looking at trading equities again after sitting on my hands or doing the odd sell of held stocks over the last few weeks. Could the market decline be behind us or could this be a bull trap ?
What else are you in? My bitcoin is now up 30% in three weeks and still going.
 
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@over9k the Indian's are starting to get their act together, the Indian motor cycle manufacturer Royal Enfield, recently developed a 650 twin and it is really getting traction in Western markets.
Not only is it a quality product, it costs about the same as a Japanese 250, so it is selling well world wide. As the Korean's have proven, once you get a good product selling, there is a knock on effect.
https://www.rideapart.com/news/433356/royal-enfield-interceptor-top-selling-bike/

Then of course there is Jaguar and Land Rover/ Range Rover
My MGB look was great, the inside....and not much has changed since..looking at the style of the latest Jaguar and land Rover..not sure we are on the winners there...
 
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What else are you in? My bitcoin is now up 30% in three weeks and still going.
Possibly looking at a few of the Gold mining stocks to buy as well as increase exposure to flight and travel stocks given that the worst of the pandemic looks to be behind us and Syd/Melb are opening up to live with the virus having being vaccinated.

Or with regards to interest rates we were talking about at some stage, NZ adding a little fuel to the fire...

 

over9k

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CSI300 down another 1.5% today.

Bitcoin meanwhile is up to $84k AUD and still going ;)
 

greggles

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The 30 day grace period for Evergrande to meet its financial obligations expires Saturday. Clearly, it's not going to happen.


I think the market has delayed any reaction to the Evergrange crisis as the grace period had not yet expired. Well, the clock is now ticking down and a formal default now seems inevitable.

I am going on the record as predicting a huge global market selloff this Friday.
 
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