Forex – Forex Killer – eBay – Sky High Auctions – Succesful Online Businesses and other money making opportunities. » Manufacturing And Importing Your Product From Asia

For more years than I have been witness to, companies have been mass-producing their products in Asia, usually in or in the region of Southern China which is now globally seen as the manufacturing capital of the world.

The reason for this is that you get a lot more for your money in China than you do pretty much anywhere else because of the exchange rate, a single unit of their currency (Yuan) is worth far less than a single unit of ours.

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.

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.

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.

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.

So to summarise, it is clear to me that it is far more advantageous for companies to mass-manufacture their goods in Asia than to do it domestically.

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