Author: dannycool

Why are Chinese products so cheap?   [Copy link] 中文

Rank: 1

Post time 2007-12-26 21:54:08 |Display all floors
cheap labour and undervalued yuan make it possible.

by the way, not all chinese products are cheap, only no-name chinese products. I really enjoy my "made in China" ipod nano.

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Rank: 8Rank: 8

Post time 2007-12-27 11:27:38 |Display all floors

Reply #134 mrsonguku's post

We should not get "too upset" over "poor pay for migrant worker" now, as it takes time for industry and business to "climb the value chain"!

The pillar of the modern economy is
(1) Food + value added
(2) Housing + construction
(3) Services + quality of life improvements
(4) Automobile
(5) Investments + financials
(6) Vacations.

take care!

Green Dragon

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Post time 2007-12-31 09:15:30 |Display all floors

reply

actually, it is very pondering question,"why are chinese products cheaper?".answers to this question will be variable, but the basics are as follows:1.lower labor resources; 2.low added-value products 3.greedy  bosses
4.untrained rural workers. fortunately, our government is playing special attention to this problem and taking actions, recently, laws and regulations are gained an approval by the state council  to control low added-value products investment and energy waste investment.

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Post time 2008-1-10 16:58:28 |Display all floors

It is Time to Upgrade

A big part of the China Price phenomenon is the cutthroat competition amongst Chinese suppliers.  Foreign buyers, especially the major multinationals, play the Chinese suppliers against each other to wring that last RMB of profit out of the supply chain.  As a result, the factories typically gets to keep less than 10% of the "profits" between the Western retail price and the factory cost.  It also means that the "China Price" is in many instances 30% or more lower than that of the next competitor.

This is totally unhealthy on a macro basis - I mean from the standpoint that profit-starved Chinese suppliers can never grow into strong multinationals.

Better industrial policies are needed to help boost the negotiation power of Chinese suppliers, and boost the overall profits of the Chinese suppliers.  

There should be pooling of industrial property (IP, such as copyrights) for entire industries, to help ensure reasonable profits.  For example, I can see a system whereby all of the toy factories in Guangdong pool their designs into a huge catalog, backed by contracted lawyers to enforce the "book."  The royalty could be set so that the originator/creator need not pay, but everyone else must pay 15%.  That would have the effect of "guaranteeing" a minimum profit of 15% for the industry - as the Walmarts and Carrefours of the world can no longer squeeze the factories dry.  Yet the margins are such that the goods will still be very competitive.  The collected royalties can support a float of the enterprise (the catalog keeper), which shares are owned by the companies that contributed the IP in the first place, and the profits can fund a national safety inspection scheme, and engage in further R&D to benefit the industry.

Repeat the across multiple industries, and in 10 years China will indeed be the true factory of the world, and a profitable one at that.

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Post time 2008-3-4 21:20:16 |Display all floors

# 1

The following is the reply to # 1 and many other posts from the same posters and few others


China's products are not cheaper in the world just because of quality. Similarly, the reasons why Chinese products are used to sell on FOOTPATH does not because of thier low quality again. There are many other things which you need to consider, before you make up this stupid idea about China and Chinese products.

China's products are not low in quality but the importers of your poor country, India, have the habbit to buy cheap and quality compromised products from China and elsewhere in the world. Your country also buys T-Shirts from Taiwan, those T-Shirts also sold on footpath. Does that mean that Taiwan also do not have quality in its products ? Ofcourse not !

Similarly, why Chinese products sold on Footpath is not the fault in the products. Remmember, the 90% of Indian made products also sold on footpath. Does that also mean that India does not have quality ?

China offers products in all ranges of quality and prices. There they ask you in which price range you needa product and they make it feasible within that price range. Is this surprising facility available elsewhere in the world, including your country ? Now this is your importers, who buy cheap and low quality products from China. And why they do that. Why they buy Key Chain price under a dollar ? why not they buy key chain priced 10 $ ? That is another story, which, again, nothing has to do with China. But your own faults

In the country, where more than half of the population is living without homes and sleep hungry under open sky. Who the hell is going to buy expensive products ?

While India has protected its retail market for more than 50 years from foriegn invaders. It has now taken its hands up in the air and given access to chains, such as mcdonald, super store etc to kick @ss of retailers and suck all business from them. I wonder how the Indians would be increasing their life standards, while major portion of their EARNINIG POPULATION is not suffering from the Chain like things and loosing business in the hands of super stores and chains etc.

Your attemp to compare India with China is only a dream of Idols. While China's per capita national income is far far high than the poor and dieing Indians. it looks very funny to me. In this case, may be comparing India with Afghanistan, Sudan, East Temor, Thialand is more appropriate. Having huge software exports and foriegn reserves does not mean that you start comparing the stone with the rock. Especially in the case, where the whole benefit if such huge exports and reserves going to a very short list of very big enterpreneurs in the country. Can you please explain us, how good the standard of living of Indians ?

On political front, India is one of the world's most curropt country, where One man, known as leader, screw up the life of millions of ordinary ppl, just to win the elections. And the electronic and print media remains tightly under government's eye, tehelka.com is the biggest and newest example of that. I can not understand, how can you compare and which part of your society or economy or any other thing, can you compare with the country like China ?

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Post time 2008-3-5 13:51:57 |Display all floors

Reply #138 saj2go's post

Are we on the topic on PROBLEMs faced by India?

How about starting a NEW THREAD.
Do we have Indian Government permission to discuss INDIAN problems.

As far as I know, the Indian people are very sensitive to foreigners comment on the Indian condition.


cheerios!

Green Dragon
GAme Master

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Rank: 6Rank: 6

Post time 2008-3-10 18:36:52 |Display all floors
Reply #138 saj2go's post

Are we on the topic on PROBLEMs faced by India?

How about starting a NEW THREAD.
Do we have Indian Government permission to discuss INDIAN problems.

As far as I know, the Indian people are very sensitive to foreigners comment on the Indian condition.


cheerios!

Green Dragon
GAme Master  

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