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.
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.
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.
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.
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.
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.
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.
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.
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