Why China Is Still Dominant As A Leading Sourcing Destination
Business owners in western economies are exploring different sourcing marketplaces today. With a firm focus on savings, sourcing agents are making forays into Asia, Africa and many countries in eastern Europe. The search for affordable raw materials and energy forces the hand of business managers. Professionals from sourcing agencies are extending their portfolio of global supply bases, to meet the rising demands of client organizations.
Alternative marketplaces are big on the agenda, due to risks outweighing rewards in the traditional sourcing markets. Countries like Vietnam, Cambodia, Thailand, Myanmar, Bangladesh, India and Pakistan are opening up their shores. But amid the crowd, China still strongly maintains its position as the chosen marketplace for numerous reputed organizations in the world.
Promising Opportunities In a Thriving Marketplace
The Chinese economy has witnessed large scale growth in the last decade. This new economic boom has benefitted not just its own economy, but the prospects of foreign country investors. China sourcing was big more than a decade and its possibilities are still growing at a rapid rate. The evidence is quite clear, as some of the largest MNCs globally are relying on China supply resources. Eminent brands such as Adidas, Gap, Nike, GE, Coca Cola and Ikea are setting up supply mechanisms within the Chinese marketplace.
It is not just about affordable procurement and sourcing. China has a vibrant and voluminous consumer base with considerable spending power. It can be a promising potential consumer market for your business and its offerings. To explore the opportunities of China product sourcing, it is crucial to consult with reputed sourcing agencies. They can give you a clear idea about what can be achieved, based on industry sector and expectations. It is definitely possible to profitability and reduce costs with China sourcing and procurement,
Let us have a brief look at the fundamental perks of Chinese product sourcing for western business organizations –
1. Long-term sustainability – The objective that many businesses and their sourcing partners strive towards is long term sustainability. China product sourcing opportunities offer a multitude of opportunities, due to low costs and large volumes. The key to benchmark sustainability is associating with the right suppliers,
2. Profitability – It is quite simple. What a western business will spend in its manufacturing processes in its native marketplace, will probably be a lot higher than what it spends by sourcing in China. China sourcing is a way of improving while maintaining production and delivery timelines.
3. Quality assurance – A sourcing agency can be utilized to help businesses find quality suppliers in China. Chinese suppliers have strong reputations, that been built on delivering quality assurance to the west. Apart from volume and sticking to estimated timelines, sourced products and materials will comply one’s quality standards.
4. Promising labor force – China is the most populated country in the world. It also happens to have the largest skilled and unskilled labor forces in the world. Although the Chinese economy is growing at a steady rate, cheap and quality labor is still abundant.
5. Volume – Not many marketplaces have the capability of handling manufacturing volumes like China. If you need voluminous results and need them fast, China is the place to be. This is the reason why so mid to large sized businesses have incorporated China sourcing into their production workflow. It is very hard to achieve the kind of volume China can provide, within very limited timescales.
6. Efficiency – Infrastructure that is capable of handling heavy duty manufacturing processes is commonplace in China now. As a result, China sourcing agent professionals and their agencies confidently recommend China. Whether energy assured compliance with international standards, or efficiency in manufacturing and distribution. China has almost everyone beat.
Utilizing Sourcing Consultancy Options for China Sourcing
For a business to set up its own manufacturing facility or procurement office is China is actually impractical. Such decisions raise and increase the hassle of business owners. Instead, any business that wishes to explore China sourcing, should do it with a reliable sourcing agency. There are many reasons for consulting with agencies that have operated in China before. Let’s have a look –
* Reputed sourcing agencies have core local knowledge of the Chinese marketplace.
* They can identify and recommend the most profitable supplier options.
* Business owners do not have to face linguistic, cultural, geographical and negotiation hassles.
* Agents on in China seal the deal with suppliers.
* They proactively work to reduce costs, while profitability and efficiency.
Chinese product sourcing is something that can offer serious benefits to businesses across many industry sectors. The large domestic markets, promising labor, and logistics maintain its position on top of other marketplaces. Associating with tried and tested China sourcing agencies can ensure benchmark profitably.
Source:Pankaj Tuteja Chief Procurement Officer at Dragon Link
