China is considered as the second biggest economy in the world. It is not surprising that many companies want to make business with Chinese firms and suppliers. Despite misconceptions by the general public about the quality of products from China, seasoned capitalists continue to source products from the country because of specific reasons. Product sourcing China is buoyed by the country’s expansive supplier base, sophisticated manufacturing and competitive costs.
Rich supplier base
To say that China’s supplier base is rich is an understatement. It is estimated that one-fifth of the world’s manufacturing is done in China. Here, almost everything imaginable is manufactured- from appliances, food, textiles, furniture, consumer electronics, cars, toys, household items to apparels. Although many of the sub-components and materials are exported from other countries, assembly work is performed in countless factories across China.
Factories are also surrounded by supporting plants where materials are sourced or sub-assembly is made. The sheer amount of manufacturing plants in the country further lowers the cost of production in China, as manufacturers offer the cheapest prices possible in order to compete with the market. Add to this the well-developed infrastructure which supports the efficient transportation of goods and commodities.
Product sourcing China is boosted by the sophisticated manufacturing plants in the country. The biggest economy in Asia is also home to factories with world-class manufacturing capabilities. In China, factories engage robotics-based automation to ensure superior quality of the products. Factories in this East Asian nation also provide topnotch efficiency, quick turnaround time and excellent customer service.
But arguably the biggest reason why companies continue to source their products from China is the low cost. The labor force in the country remains as one of the most competitive in the world. While labor expenditures in China have steadily climbed annually by 15% since 2008 when a labor contract law was passed, the wages of Chinese laborers remain lower compared to their counterparts out west. Cheap labor costs in the country are also a result of the massive workforce in China. The world’s most population nation with more than 1.3 billion people offers a large manpower complement to support the huge production demand for manufacturing and related industries.
Product sourcing China makes a lot of sense from a business point of view. Corporations can make maximize their earning potential by ordering superior quality but cheap goods or products from China.