Manufacturing In China Pros and Cons
We are all aware of the fact that China is one of those markets that offer you the facility of manufacturing a wide variety of stuffs and that too at the lowest rates. China is well known for offering some of the most affordable solutions and this is why we often find companies going through the details of manufacturing in China pros and cons and then coming to the right decision.
If you too are looking to analyze the details of manufacturing in China pros and cons, you can check out these facts and details.
The Pros of Manufacturing in China
When you decide to have your manufacturing unit in China, you can reap a lot of advantages. The ones that deserve to be highlighted are as follows.
When we are talking of Chinese manufacturing advantages and disadvantages, one of the key benefits is the kind of cost cutting that you can get. Those companies that are looking for ways to curtail the total cost should check out the prospects of housing their manufacturing base in China.
Cheap Manual Labor
China is one of those nations where you can get labor for really affordable prices. Labor costs contribute to a substantial part of the entire expenses that will be incurred. By opting to have your manufacturing unit in China, you can procure labor at cheap rates and this will bring down the overall cost of production.
The Asian market is growing at an incredible rate. When you will have your manufacturing unit in China, you can be hopeful of breaking into the Asian market and this is likely to bring you some really good returns. When you have the manufacturing done in China, you can even have your supply chain there and this way you can cater to a mass market.
Diversification of Business
China has a booming economy and there are a lot of new sectors coming up. When you have the manufacturing team based in China, you have limitless scope for tapping into some related areas and most companies who manufacture stuffs in this country are likely to diversify their reach and try some of the common local products and this can help in improving your business growth.
The Problems with Having a Manufacturing Unit in China
While there are ample opportunities and huge benefits, there are downsides to the same too. If you are skeptic la of making a choice, it is advised to analyze manufacturing in China pros and cons. Here are some of the problems you are likely to encounter.
Inconsistency in Quality
China is one of those nations that have been in the news on various occasions for the wrong reasons. There are too many companies that offer inconsistency in quality and this is why you have to make sure to keep an eye on the quality. Selling products of inferior quality can hamper the reputation of your brand.
Low Quality Materials
Just to keep your cost in check, you should not procure raw materials that are of low quality. Regardless of the amount of fabrication you will do, you should not encourage the use of low quality materials because it is going to impact the overall reputation that you have for your business.
When you have your manufacturing base in China, you have to be very careful regarding copyrights, trademark and plagiarism. China is known for selling fake products and most people ted to double think their decision when they are buying stuffs made in China. This is one of the serious concerns when you are working in the Chinese market.
Most Chinese are not proficient in the use of English language. If you do not have a common language for speaking, the fluency of your business operations is going to be hampered. Chinese is an extremely difficult language to learn and when you choose to have your manufacturing unit in China, you will need a translator or effective bilingual speakers who can help in establishing the right platform between the two teams. If you can’t deal with this problem, it can lead to some really serious issues for your business.
Now that you have an idea of manufacturing in China pros and cons, you can weigh both the aspects and come to your own decision.
– BackOffice Pro