Some importers are constantly scanning Asia for new producing countries. They are chasing the lowest wages. It is not possible in all industries, of course. In many hard goods categories (toys, consumer electronics, DIY...), there is no … [Read more...]
4 good articles about the impact for importers of China’s macro trends
Happy 2013 to all readers! Several recent articles look at China's competitiveness in the global manufacturing economy. Here they are. What Worker Shortage? The Real Story of China’s Migrants The "China Real Time" blog, on the WSJ … [Read more...]
Wages in low-cost Asia: Rising pretty fast
The Chaina magazine picked up an interesting article from Reuters this month: SE Asian governments gamble on making Cheap Labour Less Cheap. Here are a few excerpts: In Thailand: In Thailand, minimum wages will jump by 35 percent in … [Read more...]
How to choose an AQL limit?
A few months ago, I wrote an explanation about the "AQL": what it is and how to use it. I also listed a few frequent questions, but it seems like I forgot one of them: What AQL tolerance is suitable to my products? Unfortunately, it is … [Read more...]
Rising prices in China: 5 solutions for importers
The RMB rate has been going up steadily against the USD (see below), and labor costs have been increasing even faster. When you add the raises in shipping rates and in certain raw materials prices, prices have often increased by more than … [Read more...]
How can Chinese manufacturers differentiate their products?
Chinese manufacturers feel the pressure of competition. Those based in Guangdong are up against the lower costs of other provinces. And, in certain industries, they all face the lowest costs of Vietnam, Bangladesh, Pakistan... A new … [Read more...]
The 4 ways of checking product quality before shipment
I can see four key product inspection solutions that importers should use for checking product quality before the goods are shipped out (remember, it is extremely hard to send a container of defective products back to China). … [Read more...]
The 3 trends of China manufacturing
A journalist asked me this question: "Is China over, as a sourcing destination?" My response was no... but it might be a destination for a different type of sourcing projects. No in the very short term, because supply chains can't be … [Read more...]
Lingerie production clusters in China
Last week I wrote about the future of Guangdong manufacturing. I thought it would be nice to show how an industry gradually moved away from its center in Hong Kong and Guangdong province. I picked the lingerie (bras and panties for … [Read more...]
The main advantage of manufacturing in China: speed
Li & Fung's CEO recently gave an interview to Reuters that you can watch here. I wrote a few excerpts below: About China's main advantage: "China is by far the most efficient, quick-to-market, including price and quality, if you add … [Read more...]