QNet Plans Intriguing Production Move to India
In recent years, India has experienced an amazing level of economic growth. One reason India’s economy has done so tremendously well is foreign investments of numerous varieties have traveled to the nation. The economic landscape in India is a very positive one. Costs of doing business are low and the government encourages foreign companies to succeed. After all, such success does help the domestic economy of India quite a bit. Of course, the companies that move to India also benefit financially.
QNet does want to succeed in its multi-faceted industry of e-commerce and direct selling. A move to India helps with this goal.
How many different products is QNet moving to India? The sheer volume is both impressive and surprising. Per Business Standard, QNet is primed to move 30 unique brands that fall under 9 categories to India.
Doing so could massively benefit the profit margins of the company. Moving to India could cut production costs by 8% to 10%. To those not familiar with manufacturing and profit margins, 8% to 10% is huge. The profits of many companies are slimmer than what is commonly realized. Companies do have to keep profits in reserve in order to maintain good financial footing year to year. QNet is taking a smart approach to boosting profits by merely cutting costs. A move to India cuts costs almost immediately.
QNet is far from a small company so it does need to put as much cash in reserve as possible. The scope of the company’s business endeavors is vast. At present, QNet has a foothold in roughly 100 countries. This means products are being sold and direct marketing entrepreneurs are actively engaged across the globe. Thanks to the extremely diverse nature of QNet’s operations, such a massive presence should not be surprising.
The company is also involved with selling vacation packages, a popular direct marketing concept, and also offering online learning classes, perhaps an emerging direct marketing concept. The sale of physical products will always be the linchpin of direct sales. Clearly, QNet realizes this which is why it is taking steps to streamline manufacturing and cutting costs.
The current production facility used by Qnet is located in Himachal Pradesh. Currently, the facility is only producing the energy drink Nutriplus. QNet wants to eventually move all of its production to Himachal Predesh. How long it takes to achieve such a goal remains to be seen. Likely, QNet is moving at breakneck speed to achieve its desired targets. Hopefully, the company will also achieve its desired cost cutting goals as well.