Importing From Low-Cost Countries

By Davina Cruella Sandwich

Organisations have been having their products mass produced in and around Southern China (now recognisable world-wide as the manufacturing capital of the planet) for more years than I care to remember.

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.

And there we have it, pretty much THE reason most products are sourced in China. Cost. But what more reason do you need it it will save a great deal expenditure? There are a few more advantages, and a couple of disadvantages.

The advantages are few, but still obliterate the disadvantages in my opinion. Of course the main one, price is a big factor as I previously mentioned. There are 11.2 Chinese Yuan for every 1 British pound so you do get a lot more for your money.

Another advantage is the close proximity you gain to their local trading environment. If you can get your company recognised in the Chinese trading industry it can only benefit your organisation. Also there is a good chance that you will end up a lot closer to the raw materials you need to make your product, therefore saving on the acquisition of your raw materials as well.

The disadvantages, I would say, are severely disproportionate to the advantages in that they seem relatively insignificant. The main disadvantage is the shipping cost. Actually getting your produced product back to the UK/USA/wherever you are based can be a bit pricey, but compared with the money you will have saved on the actual production, I think this is 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.

To conclude, I believe that the advantages that come with manufacturing your goods in Asia far outweigh the disadvantage. - 23208

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.