Business

The benefits of direct outsourcing production in China

In today’s global economy, achieving competitive advantage is vital. Because many companies compete in the market, they had to do everything to reduce production costs.

There are several ways to get new products. The company has to decide whether to “make or buy”, ie whether it will produce products that are traded or it will be easier to leave production to experts in that field.

Most of the new products are not valuable, so great attention has to be paid how to manufacture a product and where, to make a profit depending on the time and money to their development and launch. Fortunately, some clear criteria can be applied, and if viewed, probability of success is likely to be greatly increased. It should be noted, however, that there is no way of completely avoiding the risk of initiating a product that consumers do not have prior experience.

It is quite pointless to produce a product that is unlikely to be in a sufficient amount for revenue that covers development, production, marketing and distribution costs, as well as a profit contribution.

China has advantages when it comes to production over other countries. One of the reasons for this is the experience and education the country has in delivering products that adhere to the strict standards required by Western laws and consumers.

Therefore, if you are producing in the western economy then you have to wonder why. Why use your own workforce that can be 10 times more expensive than what a Chinese company could pay for? Why focus on production when time can be better spent on sales, marketing, and business development?

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