When many individuals notice the “Made in China” label on a product, some will instantly assume it is inferior, poorly made or unattractive. This stereotype is unfair and perhaps even outdated but unfortunately, the ‘Made in China‘ label still conjures phrases such as “not build to last” and “cheap imitation.”
While China is the undisputed manufacturing capital of the world, the term “Made in China” still carries a negative connotation in many circles. Some instantly associate ‘Made in China‘ with inferior, poorly made products. Many also associate the ‘Made in China’ term as synonymous with “not made to last” or “cheap imitation.”
The problem is that those labels could not be further from the truth. In fact, some of the world’s largest technology companies that make products that many of us use everyday including Samsung and Apple. Chinese manufactured parts are then used to assemble items like smartphones and tablets. In addition, most luxury brands also have a large proportion of their products made in China.
Take the example of the Gionee factory in Shenzhen, Guangdong province. It houses a technologically advanced, open industrial facility. Along with production floors that can manufacture all components in-house, an assembly line that houses almost fifty automated robot Surface Mount Technology, design centers and strict quality-control checking areas at each state, there are basketball courts, grocery stores and food courts for the in house employees. Gionee is a top-notch facility that is far from the images of a third world sweatshop.
“Made in China” is a plus for the U.S. Economy
Perhaps the most surprising fact is that when American consumers purchase Chinese manufactured products, it is good for the U.S. economy with most of the profits staying home. This works because as it is, only 2.7 percent overall of American purchasing heads to goods that are produced in China. And even that percentage is generous since just 1.2 percent of those “Made in China” products represent the total cost of imported products.
What this means is that nearly fifty-five cents for every dollar spent on produced goods made in China actually will go to American produced services, because the American-made production of Chinese labeled items is about fifty-five percent; this is higher than all overall imports. Because of the larger wholesale margins on items such as electronics and clothing, purchasing items that are manufactured in China actually benefits the American economy overall.
Made in China Means Savings for the U.S. Consumer
Because products manufactured in China are usually high mark-up items like televisions, phones, tablets and gaming devices (and even many lower end items like clothing and plastics have similarly marked up percentages), they contribute more to the American economy than products that are manufactured in other countries such as Germany or Japan. This is a testament not only to Chinese manufactured goods but also the power of the American consumer. These facts will help provide ethically-conscious shoppers confidence to buy Chinese made merchandise.
Even when considering all of the benefits of Chinese manufacturing and its contributions to the U.S. economy, it is still difficult to reverse many of the negative connotations that the label “Made in China” carries. However, many companies and organizations use Chinese made products and goods to save on their own expenses. Chinese manufacturing will help companies increase their production and benefit in multiple other ways.
If your organization is considering Chinese manufacturing to help your business, but are unsure of how to get started, we are in the business of linking organizations with strategic partners in the manufacturing. With partner with companies with proven results and the experience to help your manufacturing strategies succeed.
Contact us to find more information on how to leverage Chinese manufacturing for your business needs!