As part of a recently received inquiry for high-visibility vests, our company contacted manufacturers in Turkey and China in order to compare the best offers. It was found that the Chinese product is offered ex works at a price of well under 1 euro, while the Turkish equivalent is priced at over 2 euros ex works.
This significant price difference raises the question of which factors are responsible for it and why Chinese products are preferred in many cases.
Economies of scale and production volume
China is a global leader in mass production. The extremely high volumes make it possible to reduce costs through cheaper raw material purchasing and by spreading fixed costs over many units. Turkish manufacturers often operate with smaller production volumes, which increases unit costs.
Labor costs and efficiency
Labor costs in China, especially in rural regions, are often significantly lower than in Turkey. In Turkey, the minimum wage has been increased substantially in recent years, which benefits employees but also raises production costs. At the same time, many Chinese factories are optimized for maximum efficiency.
Government support and subsidies
The Chinese government supports many industries through subsidies, tax advantages, or low-interest loans. This enables products to be offered at significantly lower prices. Although there are also support programs in Turkey, they are less extensive and less specific.
Raw material availability and intermediate goods
Many of the raw materials required for the production of high-visibility vests originate directly from China. Producers there can source them locally and at low cost. Turkish manufacturers often have to import these materials, which increases production costs.
Infrastructure and logistics
China has world-leading logistics infrastructure. Efficient supply chains and enormous port capacities make the export of mass goods more cost-effective. Turkey also has good infrastructure, but not on the same scale as China.
The price difference is clear, and at first glance the Chinese product appears to be the better choice. However, price alone is not decisive. Factors such as quality, durability, and compliance with standards are at least equally important. Once the samples are available, it will be examined whether the lower-priced product from China meets our requirements. If the quality is convincing, it could become the preferred option.
Which products and price differences between the two countries are you particularly interested in when sourcing? We would be happy to research for you and compare offers to present the best options.
If you have any questions or require assistance, please feel free to contact us at any time!
