Organisations have been having their products mass produced in and around Southern China (now recognisable world-wide as the manufacturing capital of the planet) for more years than I care to remember.
The reason for this is that you get a lot more for your money in China than you do pretty much anywhere else because of the exchange rate, a single unit of their currency (Yuan) is worth far less than a single unit of ours.
That is pretty much the main reason that a lot of companies source their products from Asia. I mean, what more reason does a company need to do something if its going to save them lots of money in the long term? But there are some other advantages, and a few disadvantages.
There are only a few advantages, but I still think that they by far outweigh the disadvantages. The main one I have already talked about, the price. For every single GBP you get 11.2CNY (Chinese Yuan), so your money really does go a lot further.
Also, you can get in with the Chinese trading industry, and if you can become known among them, this can be infinitely advantageous. Another advantage is that you will undoubtedly wind up closer to the raw materials you need, hence you save money on that as well!
Now to the disadvantages, one of the main ones is the cost of importing your goods back to your base country. However when you compare the money spent on importing to the money saved on manufacturing, the overall process will still work out cheaper.
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. - 20767
The reason for this is that you get a lot more for your money in China than you do pretty much anywhere else because of the exchange rate, a single unit of their currency (Yuan) is worth far less than a single unit of ours.
That is pretty much the main reason that a lot of companies source their products from Asia. I mean, what more reason does a company need to do something if its going to save them lots of money in the long term? But there are some other advantages, and a few disadvantages.
There are only a few advantages, but I still think that they by far outweigh the disadvantages. The main one I have already talked about, the price. For every single GBP you get 11.2CNY (Chinese Yuan), so your money really does go a lot further.
Also, you can get in with the Chinese trading industry, and if you can become known among them, this can be infinitely advantageous. Another advantage is that you will undoubtedly wind up closer to the raw materials you need, hence you save money on that as well!
Now to the disadvantages, one of the main ones is the cost of importing your goods back to your base country. However when you compare the money spent on importing to the money saved on manufacturing, the overall process will still work out cheaper.
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. - 20767
About the Author:
A great company to do all your import and manufacture with is Red House Global. They have had decades of experience and are well known among the Chinese traders, ensuring you the best price.
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