Online marketing giant, Qnet released a public statement, indicating that as a part of its overall global corporate strategy, it is relocating its manufacturing facilities to India, over the course of the next 24 months. The Hong Kong online marketer provides consumers a vast array of products, that promote a healthy lifestyle and well-being.
Manufacturing over 30 brands of diverse products, ranging from nutrition and lifestyle, to world class jewelry, and Swiss-made watches, Qnet is a worldwide leader in the manufacturing, and distribution of consumer products, and services, in Europe, Southeast Asia, Russia, the African continent, and the Middle East. At present, Qnet has manufacturing facilities in more than 12 nations and has a balanced franchised distribution network.
Zaheer Merchant, Director, Corporate Affairs, Qnet commented about the current state of operations at Qnet, stating, “Despite our challenges in India, we are investing heavily in manufacturing facilities and new product development here. We already produce some of our watches in India and our energy drink Nutriplus was created especially for the Indian market with production facilities in Himachal Pradesh, which we eventually want to take to our global markets. We want to consolidate manufacturing facilities in India.”
Qnet management believes that by consolidating all of its manufacturing facilities within India, it stands to realize a cost savings anywhere between eight to twelve percent. Seeing shifting consumer trends worldwide, Qnet implemented a strategic move that concentrated on niche markets, focusing on a product mix that provided consumers added value and made a significant impact on their day to day lives. With the entry into niche marketplaces, it has fostered a “Life Enhancement” concept, an arena that provides consumers more than mere lifestyle improvement. The move towards Life Enhancement permits Qnet to enter the learning and knowledge marketplace, as well as offering weight reduction and management, air filtering, and water purification products.
Looking forward to operations in India, there come many challenges that are met with caution. “Despite having a fully legal structure in place and we are complying with all the Indian government regulations, paying relevant taxes and duties, we are being subject to various legal challenges arising from baseless claims. If a clear legislation was in place, the investigators would be able to see as much as apply, that QNet’s Indian operations are legal, compliant and transparent,” Zaheer Merchant remarked.
Qnet expects the manufacturing transition to be completed by early 2017.