5 Benefits of Manufacturing in China
Have you ever wondered why many renowned businesses choose to manufacture in China? It is common knowledge that China is the place to go to enjoy low labor cost, but the benefits of manufacturing in China does not end there.
- Lower costs
Generally, you can cut down your costs by more than twenty percent when you manufacture in China. Raw materials and supplies are also often cheaper in China. However, although it is true that less costs means higher profit, business experts advice that having lower costs is not enough. You must also consider the quality, as well as how to be close to your customer base. Moreover, it is important to take note of shipping costs and customs charges, if applicable.
- Mass production
Chinese factories are very efficient when it comes to handling bulk orders and always comply with the terms of production. For example, when it is agreed that you will receive 100,000 units within a week, you can expect to receive them within the stipulated time. This also helps to further cut down on costs in accordance with the economy of scale.
- Better quality of service
The Chinese have a strong entrepreneurial spirit. Manufacturing in China gives you the opportunity to work with those who have a strong commitment and devotion to business.
The Chinese are known for observing exemplary conduct in business which assures quality of service.
- New opportunities and connections
Manufacturing in China also opens the doors to new business opportunities. You can also meet Chinese entrepreneurs who can help you with your enterprise. You will also have access to Chinese research, science and technology.
- Opens a big market
When it comes to population, nothing beats China. Manufacturing in China brings your products into the Chinese market. China is one of the fastest growing economies in the world, and the population of its rising middle class is greater than the US. And since China is a unitary sovereign state, you can expect more stability in its government, which is important in business.
Free Book: Doing Business in China - Tips and Tracks
China has its own business culture and etiquette.
There are many things that a businessman from West needs to understand if he wants to enter the China market and succeed.