For many many years now, companies have been having their products mass-manufactured in Asia, usually in and around Southern China as this is now recognised as the global manufacturing centre 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.
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.
As well as that, there's the time that shipping takes. This is probably more of a disadvantage as this could result in loss of turnover if demand for your product is high enough. Also, the production might be a little sloppy to start with, but if you get a good sourcing company to sort it all out for you, they will ensure that this doesn't happen.
So to summarise, it is clear to me that it is far more advantageous for companies to mass-manufacture their goods in Asia than to do it domestically.
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.
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.
As well as that, there's the time that shipping takes. This is probably more of a disadvantage as this could result in loss of turnover if demand for your product is high enough. Also, the production might be a little sloppy to start with, but if you get a good sourcing company to sort it all out for you, they will ensure that this doesn't happen.
So to summarise, it is clear to me that it is far more advantageous for companies to mass-manufacture their goods in Asia than to do it domestically.
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.
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