SUSTAINABLE Hi-Fi BUSINESS MODEL

[Srinath_seshadri]

AFAIK importing used electronics into India is not allowed by customs. If they know it is a used item they can sieze the shipment. Please note this does not apply to individuals carrying equipment in their checked or carry on luggage (at-least I have not had issues with that) - only to shipments via courier/shipment packages sent on a regular basis. If any one wants to start a business with this model, it is better they work with a Import consultant / Clearing agent, first to check its feasability and legality. I work with a few of them here in Hyderabd & Chennai for my business and they told me this.
Cheers,
Sid

A few years ago, 4 people who had lived in the US for 3-4 years sent a container full of stuff to India. Not all was electronics I think, but some of it was new electronics (like a flat screen TV) and some was old electronics - an onkyo TX sv 909 I modded for 230v operation and some others.

It went there to my friends family and they used it and it worked (my biggest concern cos after 230v conversion I couldn't test it). I know that.

I dunno, maybe it was considered what they brought back after living in the US, or maybe it was between a lot of home stuff, so it got ignored - no idea. But the idea was to fill the container.

Cool.
Srinath.

 

[hemantwaghe]

Remember the best selling car in India is either Maruti or Ambassidor not the Mercedes. Yes Merc or BMW can be sold but you will get one customer once in a month or so so get prepared for that.

.

Ambessador is NO longer in production

Yes premium German marks selkl LESS but not as you expected in 2013 Audi sold 10000 Cars Merc 9000 and BMW 7300 across india...

BMW India loses crown to Audi, Mercedes in luxury cars market - Economic Times

That means many agencies selling Much much more than 1 car per month...

 

[nmursekar]

I think babloo meant that to go for lower to mid segment for sale and resale of the products without any heavy investments in high end stuff.
Also the sale time against investments and the targeted location/customers needs to be well studied IMO.

 

[captrajesh]

AFAIK importing used electronics into India is not allowed by customs. If they know it is a used item they can sieze the shipment.

when one is talking about whole consignment of used electronics , I don't think it will be easy or even possible

You guys may be correct but there is a whole market thriving on selling the used stuff at Chennai. Consignments come, predominantly from Singapore. Don't know how they manage.

 

[sidvee]

A few years ago, 4 people who had lived in the US for 3-4 years sent a container full of stuff to India. Not all was electronics I think, but some of it was new electronics (like a flat screen TV) and some was old electronics - an onkyo TX sv 909 I modded for 230v operation and some others.

It went there to my friends family and they used it and it worked (my biggest concern cos after 230v conversion I couldn't test it). I know that.

I dunno, maybe it was considered what they brought back after living in the US, or maybe it was between a lot of home stuff, so it got ignored - no idea. But the idea was to fill the container.

Cool.
Srinath.

Usually if one lives overseas for more than 3 years (I think that is what it is), you will be entitled for Transfer of Residence where you are allowed to bring back household goods and electronics with small amount of duty. I availed that offer when I returned in '09 and brought back a container with a lot of my audio components. However in TR your passport is scanned to determine you have been living overseas, secondly not all TR is easy. My container was held up for over a month due to the amount of electronics - they initally levied a 10lac duty but I had my agent negotiate non official duty , and it was significantly less. Regardless this is definitley not a sustainable model, you can get away with maybe 1 or 2 containers with people coming back to India for good - provided they don't want to use TR - after that what? Also you can use TR every 7 years or so on the same name I believe.
Cheers,
Sid

 

[shkumar4963]

I still think that both in amplifiers and speakers there are a lot of bargains. What I mean is that there are a lot of unknown brands that sound as good or better than known brands for the same price. In US, they are not sold much because they require longer audition time and longer selling time. And here the space cost and labor cost are such that this higher cost is not cost effective for lower cost speakers (less than $500) or amplifiers (less than $300). But, in India, if one can manage a store with manageable space cost and labor cost, one can select such high quality lower cost items and sell then based on audition rather than brand name. To do that, the dealer will have to demo them against name brand systems and show that the sound quality is equal or better. The value, in this case, the dealer brings, is to find and select such components using his audition and selection process. Just my 2 cents.

 

[sidvee]

What I mean is that there are a lot of unknown brands that sound as good or better than known brands for the same price. In US, they are not sold much because they require longer audition time and longer selling time. And here the space cost and labor cost are such that this higher cost is not cost effective for lower cost speakers (less than $500) or amplifiers (less than $300). But, in India, if one can manage a store with manageable space cost and labor cost, one can select such high quality lower cost items and sell then based on audition rather than brand name. .

What I know of the Indian mass market electronics is this - Volume? If you want to be a distributor for an overseas mass market manufacturer - whether it be China or any other country - then you better deliver volumes - Why? Simply because he will want you to buy a container load of product and commit for container loads for the next 2-3 years (he has a factory to run). So you will have to take the inventory holding risk - build a brand - spend huge amounts on advertising (indian market advertising is very expensive) and then hope these items sell through dealers whom you have to train not really knowing the reliability of the brand you are building- whereas the Indian middle class who has a lot of exposure (via internet) wants to buy Marantz, Denon, Yamaha & Onkyo or worse BOSE. So IMO selling off-brand electronics is a huge risk - at-least with established mfrs. they may offset your inventory holding cost - but with small no-name manufacturers you will have to eat the loss if the gamble fails. I do not see this type of market (low priced off brand audio electronics) developing in India in the near future at-least. And I base this observation from having talked to a number of dealers, distributors and manufacturers. BTW do you know that a bank loan in India will have an APR of 17-18% (they advertise 13% but this is not the apr method used in US which is true annual rate - here they use a different calculation), what is it in the US now 2-3%?
Cheers,
Sid

 

[rikhav]

You guys may be correct but there is a whole market thriving on selling the used stuff at Chennai. Consignments come, predominantly from Singapore. Don't know how they manage.

How else captain

"Smuggled"

There are many people who will do the task for you at a price. just how drugs enter through ports

electronics is in fact very much manageable

But I doubt any one of us would like to associated with such people

 

[nmursekar]

How else captain

"Smuggled"

There are many people who will do the task for you at a price. just how drugs enter through ports

electronics is in fact very much manageable

But I doubt any one of us would like to associated with such people

Very true.

 

[captrajesh]

How else captain

"Smuggled"

There are many people who will do the task for you at a price. just how drugs enter through ports

electronics is in fact very much manageable

Container loads!! No wonder a very senior Banker once told me during one of our discussions that there is a parallel economy thriving here.

 

[Srinath_seshadri]

There are many people who will do the task for you at a price. just how drugs enter through ports

From what I've heard, India is not exactly a destination for drugs, its part of the source.
I am kidding, but most of the serious drugs are from Pakisthan/afghanisthan (golden Triangle) or from the golden crescent. The less serious ones are simply grown there. I have seen lots of nice "plants" during my life there.

Cool.
Srinath.