China is a recognized world leader in the production of virtually any type of product. Here they create cars, appliances, household appliances and food. The production of jewelry is adjacent to the most complicated mechanisms, and the volumes of everything manufactured simply amaze the imagination.
History reference
In antiquity, during the heyday of China, it was considered the most developed country in the world. A huge number of craftsmen, specialists, industrial facilities (taking into account that time, of course) and so on were concentrated there. Science was actively developed, a strong army was equipped, and it was here that everyone who wanted to join the most advanced country flocked. Unfortunately, the country's foreign policy was oriented toward closeness, which ultimately led to the decline.
Besides the huge population, China could not boast of anything until the Communists came to power. In a short time, disregarding the losses, they carried out industrialization, which helped the country begin its development. However, until 1979, when closure was finally lifted, which caused the decline of the ancient empire, few people heard something intelligible about this country. Since then, production in China has been growing rapidly, and now this country has concentrated most of the world industry within its borders.
Modern statistics
The factories of China for the production of everything in the world (or most of what a person needs) are represented in large numbers. So, it is China that produces 3/5 of all goods of heavy industry. At the same time, modernization is regularly carried out, new technologies are introduced and everything is done to optimize the process as much as possible.
Most of the production is concentrated in more or less large settlements. If there is a city with at least half a million inhabitants, then there will certainly be factories. All this allows the country not only to provide its fantastic population, but also to actively export goods to other countries. Now, for example, the New Silk Road project is being developed, within the framework of which the Chinese plants will receive new buyers.
Feature of production in China
Everyone knows that in China, the salaries of almost all specialists, including senior ones, are significantly lower than in most other countries of the world. Moreover, a huge number of the population eliminates the problem of idle factories due to the lack of specialists. Even if someone refuses to work for a penny (by generally accepted standards), then there will always be others. In fairness, it is worth noting that the prices of products and other necessary goods are also very low.
Thus, equipment from China for the production of various goods is much cheaper than any other analogues. And if you also use inexpensive labor, the price for an individual product will be such that in other countries it is simply impossible to achieve such a result. In principle, the entire economy of the country is built on this basis.
Geographic location
The government is trying to divide the production of goods in China into different parts of the country. This approach allows you to “sharpen" infrastructure, education, resource base and other features for a specific type of industry, which again positively affects its quality, quantity and price.
- In Chongqing, the lion's share of the total production of cars and motor vehicles in any of its varieties is concentrated. Most of all cars in the world are built here.
- Tianjin is primarily focused on the creation of everything that is somehow connected with the biosynthetic and petrochemical industries. They make cosmetics, medicines, and so on.
- Zhenjiang - The capital of information technology, communications and a variety of electronics. In principle, all this is done in other regions of China, but it is here that all the largest plants are assembled.
- Jiangsu It is focused on the manufacturing and metallurgical industries in all their existing varieties.
- Shenzhen and Guangzhou are provinces actively producing electronics, shoes, and clothing. Most of everything that we can see in stores or in markets is created here.
- And, of course, Shanghai. One of the most famous, at least by name, regions. The largest ports are concentrated here, in which transshipment of goods is carried out, but among other things, they immediately produce all kinds of machinery, instruments and equipment.
The creation of goods is going on all over the country, but the listed regions are interesting mainly due to the fact that everything created there is mainly exported.
Lagging areas
The Chinese authorities pay special attention to those parts of the state that, for certain reasons, do not have such powerful engines of the economy as factories. Everything that is possible is used, starting with tax incentives and ending with the centralized allocation of industrial facilities.
This allows us to continuously improve the situation throughout the country, raising the standard of living and, of course, producing even more goods. The main problem of the PRC is that this process cannot be infinite. Already now the market is oversaturated, especially against the background of the permanent global financial crisis. In the near future, it will be necessary to take some steps so that all these millions of plants do not stand idle.
Own production in China
The PRC does not stop at creating factories for itself and offers even foreign citizens to open them in different parts of the country. There are three main areas, if they are divided according to how actively zaksthe cheek wants to intervene in the process:
- Own production. The most complex and costly method, including the need to promote a new brand and personally solve all difficulties. Given that all this must be done directly on the territory of the new enterprise, not everyone can master this. However, in the end it will be exclusively a personal business, in the long run capable of making a fortune. But first, you have to spend money on it in order to organize, purchase, hire and open everything.
- OEM production. This method is already easier. It consists in the release of some unique products by the capacities of an existing company. This product will be produced under its brand name, which already facilitates market penetration. However, you need to carefully study any elements, features and other factors that in these products will be considered fundamental to attract customers.
- Sourcing is the easiest option. You need to find a plant that already produces exactly what you need. Further, the customer’s label is glued to this product, and under this form it is offered to customers. Minor changes are possible that will not be able to radically affect the operation of the established production line.
All this helps to establish or order production in China, significantly saving on subsequent costs. It should be noted that in some cases it will be even cheaper to discover something similar in the territory of your country of residence, but this is more an exception than a rule. That is, this issue needs to be studied separately, before the start of the process of negotiations with the Chinese.
Positive sides
Factories in China for the production of almost any product can be profitable for the following reasons:
- The minimum cost of starting production, especially compared to other countries of the world.At the same time, China has strong and stable power, which will allow you not to worry about the safety of their property.
- Good service. Chinese experts are accustomed to work quite high quality, no matter how funny it may sound. Those constantly breaking goods, bad clothes - this is only part of the production, and the cheapest. If you focus on the best, then the overall result will be more significant. At the same time, purely human relations should be singled out separately. The Chinese make contact easier, listen to the customer, make concessions, offer unique conditions, and so on.
- Labor productivity. Few can compare with the people of China in this regard. Despite the minimum wage, they are ready to work almost round the clock, invariably giving out exactly as much goods as required.
- Punctuality. We are used to the fact that ordered in China often gets to its owner for a very long time. But the factories have nothing to do with it. If they are told to produce a batch of goods in a week, then exactly at that time everything will be ready. Not earlier, but not later.
- Copying. In China it is forbidden to fake other people's products. But no one bothers to buy any product and ask the manufacturer to simply copy it (maybe even make some improvements) by hanging a new label. This will already be considered a unique product, and it can be safely sold left and right.
Negative sides
It might seem that using production in China is just the perfect solution, without flaws. But this is not so. There are also difficulties in this process, which also needs to be prepared.
- Finding the right plant can be very difficult. Often this takes more time than all the other stages combined.
- The Chinese language is very complex, and they do not speak very well in relatively widespread English. Only a few also know Russian.
- Chinese means bad. That's what most potential buyers think. You will have to make a lot of efforts to convince them of this.
- Commodities from China go quite a long time, and at the same time, customs duty still has to be paid. This will increase the cost. It is necessary to take into account this moment at the planning stage.
Summary
In China, there is almost any production that you can imagine. Everything that the Chinese are doing is diverging in huge quantities around the world, and now find the goods without marking Made in china getting harder.