A Look at the Chinese Manufacturing Industry
China is presently the world’s leading manufacturer of consumer goods. Through extensive mass production and cheap labor, the price paid in the production process comes much less. At present China manufactures all sorts of consumer products like: electronics, shoes, cars, clothes, jewelry, appliances, electronic parts, chemicals, footwear, and many more. These products are manufactured for local as well as international markets. The huge scale production of these consumer goods have enabled Chinese manufacturers to employ more than a million people.
China’s economy is highly dependent on its manufacturing sector. China manufactures the bulk of world-class electronics. Many leading global brands to produce their own versions of these electronics in China. Some of the largest electronics firms in the world have set up their manufacturing plants in China. Apple, Sony, Cisco, etc.
The Chinese market for consumer goods is growing at an amazing rate. The rapid growth of the Chinese economy is due to the large scale factory production of these consumer goods. The high volume of production results in lower prices of the products. This ultimately results in a higher sale price. Since China manufactures goods for all segments of the market, it offers an ideal platform to manufacture other products.
China’s ability to mass manufacture products has made it the fastest-growing manufacturer in the textile industry. Clothing is one of the most common products manufactured in China. There are many clothing factories that have sprung up in China over the past few decades. Most of these textile factories manufacture garments that are specifically custom made for an individual customer. Other products manufactured in China include jeans, dresses, blouses, caps, and many other apparel items.
China’s capacity to produce goods at a cheaper price through massive production is further complemented by the low labour costs in the country. The country has access to cheap raw materials and labor-saving machinery, resulting in the cheap supply of these consumer goods. As a result, products are sold at a better margin and with a larger size. Chinese manufacturers offer consumer goods at attractive prices, making it easy for them to make money.
China’s economy is highly dynamic as it expands and develops. This has made China a popular destination for international mergers and acquisitions. It also facilitates the process of globalization of Chinese manufacturing to the other parts of the world. Therefore, Chinese firms are able to increase their sales by tapping into the global markets.