Manufacturing And Importing Your Product From Asia
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.
But why do these big producers insist on having their products made so far away from home? Well, one answer to that question is that because of the exchange rates between our country and most Asian countries, which works out very much in our favour.
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.
The second advantage I will mention is how close you can get to the Chinese trade industry, which is of course advantageous, and thirdly you will probably end up a lot closer to your raw materials, therefore saving money on that as well.
One of the main disadvantages of this, is the cost of importing the products from China. This can be seen as extra expenditure, but compared with the money saved on the manufacturing, I would say this bares 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.
In summary, it is my personal belief that sourcing form low cost countries such as Southern China is far more advantageous to businesses than domestic sourcing.
But why do these big producers insist on having their products made so far away from home? Well, one answer to that question is that because of the exchange rates between our country and most Asian countries, which works out very much in our favour.
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.
The second advantage I will mention is how close you can get to the Chinese trade industry, which is of course advantageous, and thirdly you will probably end up a lot closer to your raw materials, therefore saving money on that as well.
One of the main disadvantages of this, is the cost of importing the products from China. This can be seen as extra expenditure, but compared with the money saved on the manufacturing, I would say this bares 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.
In summary, it is my personal belief that sourcing form low cost countries such as Southern China is far more advantageous to businesses than domestic sourcing.
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.
Posts
Post a Comment