For more years than I have been witness to, companies have been mass-producing their products in Asia, usually in or in the region of Southern China which is now globally seen as the manufacturing capital of the world.
The main reason for this is because the currency in China (Yuan) is worth a lot less than British currency, American currency, or most other currencies for that matter.
So that's the main reason people source their products from China. Well, what more reason do you need to do something other than the fact that it will save you lots of money? There a a couple of minor disadvantages, and a few more advantages to boot.
As far as the advantages go they are few, but pretty big. The price I have already mentioned, but there is a severe difference in the currencies. For every one British pound you get 11.2 Chinese Yuan, so you really can pay peanuts for what you want.
Another advantage is the close proximity you gain to their local trading environment. If you can get your company recognised in the Chinese trading industry it can only benefit your organisation. Also there is a good chance that you will end up a lot closer to the raw materials you need to make your product, therefore saving on the acquisition of your raw materials as well.
The disadvantages, I would say, are severely disproportionate to the advantages in that they seem relatively insignificant. The main disadvantage is the shipping cost. Actually getting your produced product back to the UK/USA/wherever you are based can be a bit pricey, but compared with the money you will have saved on the actual production, I think this is an insignificance.
Another disadvantage is the shipping time. Now this might be more of a disadvantage as it may actually result in loss of turnover, depending how demanding your market niche is. Also, although the good sourcing companies will ensure that you get the best service, there may be some issues of quality in the beginning as the workers get used to making a new product. As well as the fact that you cant predict the local conditions very easily, financially or otherwise.
To conclude, I believe that the advantages that come with manufacturing your goods in Asia far outweigh the disadvantage. - 22871
The main reason for this is because the currency in China (Yuan) is worth a lot less than British currency, American currency, or most other currencies for that matter.
So that's the main reason people source their products from China. Well, what more reason do you need to do something other than the fact that it will save you lots of money? There a a couple of minor disadvantages, and a few more advantages to boot.
As far as the advantages go they are few, but pretty big. The price I have already mentioned, but there is a severe difference in the currencies. For every one British pound you get 11.2 Chinese Yuan, so you really can pay peanuts for what you want.
Another advantage is the close proximity you gain to their local trading environment. If you can get your company recognised in the Chinese trading industry it can only benefit your organisation. Also there is a good chance that you will end up a lot closer to the raw materials you need to make your product, therefore saving on the acquisition of your raw materials as well.
The disadvantages, I would say, are severely disproportionate to the advantages in that they seem relatively insignificant. The main disadvantage is the shipping cost. Actually getting your produced product back to the UK/USA/wherever you are based can be a bit pricey, but compared with the money you will have saved on the actual production, I think this is an insignificance.
Another disadvantage is the shipping time. Now this might be more of a disadvantage as it may actually result in loss of turnover, depending how demanding your market niche is. Also, although the good sourcing companies will ensure that you get the best service, there may be some issues of quality in the beginning as the workers get used to making a new product. As well as the fact that you cant predict the local conditions very easily, financially or otherwise.
To conclude, I believe that the advantages that come with manufacturing your goods in Asia far outweigh the disadvantage. - 22871
About the Author:
A great company to do all your import and import export with is Red House Global. They have had decades of experience and are well known among the Chinese traders, ensuring you the best price.
No comments:
Post a Comment