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Competition with China
Post 1 of 13
How do you compete with the generalized market that is almost all moved to the cheap labor and parts in china. There are a million electronic service manufacturers,(we assembly, design and manufacture circuit boards.) how do you stand out and still attract clients. Can you. All replies are welcomed. [em24]
02 Nov 2006 13:26
Post 2 of 13
Replying to [avcom ]: If you are talking about making HIGH END electronic componets & technology in your country, China is slightly "slower" in R & D so that you still stand a chance of marketing it Globally.

Foreign electronic companies seting up factories in China, teaching them how to produce, etc... so they learn from the expert. Slowly, China people will be knowledgeable, they can do it & improve the qualities & technology as well.

When that time come, most productions (electronic & other sectors) will be in China because of the low labour cost. You know that currently the prices in China is increase gradually. [em3]

We just hope for the BEST, China can be "level to the cost of living internationally" soon.....
02 Nov 2006 23:43
Post 3 of 13
Replying to [avcom ]:But most of the copyright are own by the foreign company.[em24]
03 Nov 2006 01:09
Post 4 of 13
TradeSuperCat
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Replying to [eddylyw]:

In fact,we chinese people work hard and pay much,but we get little.what we get is experience and determination to develop ourselves.
03 Nov 2006 01:11
Post 5 of 13
MuzzyKing
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Replying to [avcom ]: I am manufacturer for plastic material, and we have inport difference of country. All of my buyer they always use china to compare our product. example we sell USD0.12, but china can sell them for USD5.00. Wao it is very difference, i really dont know. How china manufacturer they can sell for cheaper price. Now the plastic material increase, but they still can sell cheaper to them.

PLEASE LET ME WHY!
03 Nov 2006 22:48
Post 6 of 13
Grace Tung
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Replying to [avcom ]:If you do a brand product, the high quality is very important,following the acceptable price, a good after-sale service.
04 Nov 2006 05:02
Post 7 of 13
parag
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Replying to [avcom ]:

Though your question is not clear to me, I will just add few things to ponder.

China is attracting about 17 billion USD a month in direct or indirect investment in the country. So a terrific leverage in negotiation, procurement and productions AND in-turn tapping a new markets.

The RMB is still not market driven and its partialy controlled to major currencies of basket. Government have a hugh deposits of DOLLARS which are being strategically been funded in high-tech segments and industries. With the rise in the dollar-pile, the demand for the Chinese goods is rising and also pressure on the RMB.

Non-performing assests and bad-debt liabities are less at the moment. The interest rate can't be raised which otherwise would attract more deposits for the safe returns.

With the export benefits/incentives amounting upto 13% ( recently its reduced) its a great boost in manufacturing and export. Again controlled RMB and fuel prices gets the product cost much lower.

Labour forces ( skilled and unskilled ) are available in abundance in China. Helps in continuous mass scale productions.

Domestic market is big, growing and strong in terms of consumption and spending.

China is also a member of WTO means their domestic markets to be open later for the MNC's.

There are other factors to consider on the banking side, fixed assests and management of the tremendous in-flows of the dollars. At the moment, China is doing fine, government is doing fantastic job, but with the tooo much pressure for the RMB re-valuation, its worth to see in long term what would be results after 8-10 years.



05 Nov 2006 04:41
Post 8 of 13
Replying to [MuzzyKing]: China has a very big Population. The workes salary is very low. Many Capitalists dont care labor workers' health. They ask for their labor workers work for a longtime. 12Hours per day, and even 18Hours per day. at least. And with a very very low price for labor. Example, Like a Coolie who work for a baseball company. They can just only get 0.1RMB when they finish handling a baseball. Handling a baseball need about 5-10mins !
Like a waiter who works for a hotel. They can just only get about 800RMB per month.(Clean Price.) You know, Most of Chinese dont accept tips. So, most of waiter just can only earn 800RMB per month.
China is a country that appears very big gap between rich and poor. Poor humans hard to live in. Most of Labor Worker just only can get 600RMB--2000RMB per month. Even, Most of time, 2000RMB is a Manager Price.
Long time working and low salary makes most of manufacture can get a very low cost. They can get a low cost at about 5times or even 20Times than other competitor.
05 Nov 2006 22:19
Post 9 of 13
Quoting from [avcom ]:


How do you compete with the generalized market that is almost all moved to the cheap labor and parts in china. There are a million electronic service manufacturers, how do you stand out and still attract clients. Can you. All replies are welcomed. [em24]

 To my knowledge, most of the best branded electronic companeis are owned by Japanese.But to the facilities available it is mfd in China.Then these branded items are now low priced. When a product is developed by a Branded company,there are many parameters involved in priceing. Because of labour only we cannot say it is cheeper in China.
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07 Nov 2006 03:29
Post 10 of 13
Irwin the one
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Replying to [curdrice]:
I totally agree with you.
21 Jan 2007 17:45
Post 11 of 13
Replying to [avcom ]:build up a brand... and also do extensive R&D. maybe you can stand a chance, coz you cant really beat their price. [em1]
22 Jan 2007 03:48
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