The consumer is the real beneficiary
One of the key reasons for China becoming the workshop of the world is significant government spending on infrastructure. Having the best manufacturing facilities in the world is fine, but if you cannot get your goods to the global market in time, your competitive edge is lost. The government has spent billions of dollars on superhighways, high-speed rail networks and some of the best port and loading facilities in the world.
This continues to be the case, as China recognises the need to build even more power stations to meet the extraordinary demand for electricity to support the expansion of manufacturing centres. Traditionally, the growth of manufacturing has taken place in the large cities in the Pearl River delta and the eastern coast of China, but increased labour and property costs in these areas has resulted in a development push away from the coastlines of China into the provinces, which have a comparatively cheaper workforce and property market...
This continues to be the case, as China recognises the need to build even more power stations to meet the extraordinary demand for electricity to support the expansion of manufacturing centres. Traditionally, the growth of manufacturing has taken place in the large cities in the Pearl River delta and the eastern coast of China, but increased labour and property costs in these areas has resulted in a development push away from the coastlines of China into the provinces, which have a comparatively cheaper workforce and property market...
Growing competition in the 1990s forced OECD retailers to look beyond their local markets, especially in the area of low-end goods such as clothing, toys and other fast-moving consumer goods. This trend was considerably buoyed by the success of high-volume, value-based retailers. This in turn blurred traditional views of price and quality – the perception that high-quality product came at a high price was no longer the case with consumers searching for lowest price products while not willing to compromise on quality. Domestic competition, changing ideas of value and the globalisation of trade compelled retailers to develop networks of domestic and foreign suppliers.
With the development of speciality retail formats and private label programmes, sourcing from lowcost countries became an essential element in the supply chain. Retailers engaged in a constant process of improving quality while driving down prices and shortening delivery times. Consequently, opportunities offered by sourcing from low-cost economies have grown strongly in recent years...
The real beneficiary of this change has been the consumer, who is now able to access high-quality goods at incredibly competitive prices.
This continues to be the case, as China recognises the need to build even more power stations to meet the extraordinary demand for electricity to support the expansion of manufacturing centres. Traditionally, the growth of manufacturing has taken place in the large cities in the Pearl River delta and the eastern coast of China, but increased labour and property costs in these areas has resulted in a development push away from the coastlines of China into the provinces, which have a comparatively cheaper workforce and property market...
This continues to be the case, as China recognises the need to build even more power stations to meet the extraordinary demand for electricity to support the expansion of manufacturing centres. Traditionally, the growth of manufacturing has taken place in the large cities in the Pearl River delta and the eastern coast of China, but increased labour and property costs in these areas has resulted in a development push away from the coastlines of China into the provinces, which have a comparatively cheaper workforce and property market...
Growing competition in the 1990s forced OECD retailers to look beyond their local markets, especially in the area of low-end goods such as clothing, toys and other fast-moving consumer goods. This trend was considerably buoyed by the success of high-volume, value-based retailers. This in turn blurred traditional views of price and quality – the perception that high-quality product came at a high price was no longer the case with consumers searching for lowest price products while not willing to compromise on quality. Domestic competition, changing ideas of value and the globalisation of trade compelled retailers to develop networks of domestic and foreign suppliers.
With the development of speciality retail formats and private label programmes, sourcing from lowcost countries became an essential element in the supply chain. Retailers engaged in a constant process of improving quality while driving down prices and shortening delivery times. Consequently, opportunities offered by sourcing from low-cost economies have grown strongly in recent years...
The real beneficiary of this change has been the consumer, who is now able to access high-quality goods at incredibly competitive prices.
posted by pkd at 9:54 AM
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