Tuesday, May 5, 2015

Stereotypes About Chinese Manufacturing

The term "Made in China" often gets a negative connotation. Products with the term often are associated with poorly made quality and unattractive goods – an inferior product.
The facts and studies show that this stereotype is simply untrue; Chinese manufactured products consistently deliver savings and benefits for both American companies and consumers.

While China is the undisputed manufacturing capital of the world, the term "Made in China" still has a poor connotation. Many will associate "Made in China" with poorly made products that are not built to last. The fact is though, that these labels could not be further from the truth.

"Made in China" means high quality


Some of the largest technology companies that manufacture key parts of the products that many people use daily are all produced in China. Companies like Apple and Samsung could not sell many of their tablets and smartphones without parts manufactured in China. These parts are then used to assemble their tech products. Almost all luxury brands also rely on manufactured parts made in China. 

Negative images that are conjured up with the term "Made in China" also have little substance. One look at the Gionee factory in Shenzhen, Guangdong province will reveal that the factory actually is a technologically advanced, open industrial facility. Their production floors can manufacture multiple components (primarily electronics) along with fifty Surface Mounted robots on their assembly line. There are quality control checking areas throughout the facility along with food courts, basketball courts and grocery stores for the convenience of their employees.

Gionee is far from a third-world sweatshop. It is a top-notch facility built to compete with the world's best.

"Made in China" means savings for U.S. Economy

Perhaps the most surprising fact is that when American consumers purchase Chinese manufactured products, it is good for the U.S. economy with most of the profits staying home. This works because as it is, only 2.7 percent overall of American purchasing heads to goods that are produced in China. And even that percentage is generous since just 1.2 percent of those "Made in China" products represent the total cost of imported products.

What this means is that nearly fifty-five cents for every dollar spent on produced goods made in China actually will go to American produced services, because the American-made production of Chinese labeled items is about fifty-five percent; this is higher than all overall imports. Because of the larger wholesale margins on items such as electronics and clothing, purchasing items that are manufactured in China actually benefits the American economy overall. 

"Made in China" means savings for the U.S. consumer

Because products manufactured in China are usually high mark-up items like televisions, phones, tablets and gaming devices (and even many lower end items like clothing and plastics have similarly marked up percentages), they contribute more to the American economy than products that are manufactured in other countries such as Germany or Japan. This is a testament not only to Chinese manufactured goods but also the power of the American consumer. These facts will help provide ethically-conscious shoppers confidence to buy Chinese made merchandise.

Even when considering all of the benefits of Chinese manufacturing and its contributions to the U.S. economy, it is still difficult to reverse many of the negative connotations that the label "Made in China" carries. However, many companies and organizations use Chinese made products and goods to save on their own expenses. Chinese manufacturing will help companies increase their production and benefit in multiple other ways.

If your organization is considering Chinese manufacturing to help your business, but are unsure of how to get started, we are in the business of linking organizations with strategic partners in the manufacturing. With partner with companies with proven results and the experience to help your manufacturing strategies succeed.
Contact us to find more information on how to leverage Chinese manufacturing for your business needs! 

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