IIFA serves as forum for biz partnerships

KPMG and the Federation of Indian Chambers of Commerce and Industry (Ficci) have chosen the India International Film Awards (IIFA) as a forum for forging new partnerships with Chinese businessmen despite constraints of language and access to each others’ cultures. In a new report,KPMG claims that the two can foster new ties as both have a heavy domestic demand base and need not depend on the west as a market for their goods and services. India and China can clearly collaborate in the areas of gems & jewellery,media and entertainment,luxury brands,health & wellness and tourism,according to the report. Titled as the ‘Global Financial Meltdown: Turning crisis into opportunity through enhanced cooperation between India and China’,the report would form the key basis for both Indian and Chinese businessmen to come together after its launch at the Fifth FICCI-IIFA Global Business Forum meeting in Macau.

The report points out that while India is the largest consumer of gold,China is the largest consumer of platinum. This presents a huge opportunity for both sides as the market for jewellery in both India and China is enormous. India processes 90 per cent of the world’s diamond and Indian diamond processors have significant opportunities in China,so there is clearly a synergy between the two. “India can prove to be a favourable retail destination for the gems and jewellery sector for Chinese companies considering the 100 per cent FDI allowance. Chinese companies can leverage their low-cost manufacturing capabilities,” the report states.

One of the major areas for doing business together as demarcated by the report is the global media and entertainment industry,which had a size of $798 billion in 2007 and is expected to cross $1 trillion by 2012. China has high potential for online gaming with as many as 120 million online gamers in 2007. Indian companies like Zapak.com and Indiagames can leverage these opportunities.

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The luxury goods industry of both China and India is witnessing a boom and is estimated to grow at approximately 20-30 per cent over the next 5 years,the report further states. With 51 per cent FDI allowed in Indian retail,Chinese retail houses have an opportunity to start operations in India. On the health care services front,players like Apollo Hospitals,Fortis Healthcare,Wockhardt Hospitals have immense opportunity to begin their operations in China. China is one of the main exporters of gym equipment to European countries,especially to Germany.

India can also serve as an attractive tourist destination for the Chinese. In 2006 about 450,000 Chinese and Indians visited each other’s countries but this is still a relatively small number.