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What are the advantages of producing in China?
Many people ask themselves this question, because why produce in a country so far away when you can do it right on your doorstep? However, having your goods produced in China offers many advantages for companies. In this article, we would like to explain these advantages and explain what companies need to look out for.
The first reason why companies should produce their goods in China is probably the first thing that comes to mind when you think of production in China - the cost. This is because most products can be produced much more cheaply in China than in Germany or another European country. This is partly due to the lower labor costs in China, but also to the relatively low taxes and other relief and support from the state. Especially when companies want to produce in large quantities, it can be significantly cheaper for Chinese manufacturers, as there is usually more labor available than in European factories.
This also means that the production process is not only cheaper, but also faster. Many Chinese manufacturers can start producing the desired goods immediately and have their entire workforce working on this one product. With production in Germany, it often takes a long time before production even starts and the production itself also takes longer. In China, the factories start directly and in a shift system, so that the first products are completed very quickly. This is also interesting for start-ups that want to launch a new product on the market as quickly as possible. In Germany, it takes time to get approval, to produce the right tools, etc. In China, on the other hand, this process is faster, as the government wants to attract companies from other countries. The same applies to short-term changes to the product - while it can take longer in Germany for a change to be implemented, in China this usually happens quite quickly and without much effort.
The image that goods from China are of poorer quality than goods produced in Europe is no longer correct. There are many Chinese producers who manufacture very high-quality goods. Of course, there are also producers who do not offer good quality. European companies should therefore be careful who they work with. Particularly on platforms such as Alibaba, the results are often unsatisfactory, but there are simple solutions. Procurement agencies usually have local contacts who regularly check the quality and reliability of the producers, so that there are no nasty surprises.
Kaiserberg has its own office in Shanghai, China and can therefore offer direct communication with local producers. The employees, who speak Chinese and are very familiar with the Chinese market, can select reputable manufacturers and check the quality to ensure that the product meets all requirements.
Are you interested in working with Kaiserberg? Then please send us a message using our contact form.
