Tag Archives: Made in China

Accurate China Insight: If your business is product sourcing: How competitive is the ‘Made in China’ brand?

Despite the Chinese Government’s past success at restraining inflation, accelerating food, fuel, raw material and labour costs have resulted in a widely held belief that average inflation rates of 4 to 5 percent are here to stay in China, at least over the over the next decade.

Which raises the question: With rises in wage and manufacturing costs set to be the norm is China still competitive as a product source for Ireland’s importers? Accurate China Insight: If your business is product sourcing: How competitive is the 'Made in China' brand?

Ireland’s importers are right to exercise caution when sourcing from China.  However, China still has much working in its favour:

  1. China is politically stable, and such stability is good for business
  2. Low cost countries surrounding China are also weathering an inflation contagion, with inflation rates in Vietnam, India and Pakistan increasing at a much faster rate.

June 2011 Inflation Rates:

Vietnam 20.8%

Pakistan 13.3%

India 8.7%

China 6.4%

Indonesia 5.5%

Malaysia 4.6%

Philippines 4.6%

Thailand 4.1%

(Sources: Respective country central banks) 

3.  Production costs in China are still low, despite rising costs.

4. Skills levels are generally high. While China’s factories could be said to be still at an early stage in their execution of innovative manufacturing techniques, their production processes are still well ahead of similar production operations in surrounding low cost countries.

5.  The striking effects of the ‘Clustering’ in China’s three economic powerhouses [Pearl River Delta (from Hong Kong to Guangzhou), Yangtze River Delta (Hangzhou, Suzhou, Nanjing and Shanghai) and the area around Beijing and Tianjin] which have resulted in the construction of excellent infrastructure, a concentrated material supply chain, and an experienced and skilled labour force.  There is no evidence of such a clustering blend being prevalent in other surrounding low-cost countries.

6.  Productivity and industry familiarity.  While the costs of labour and logistics, as well as labour availability, are driving up factory output costs along China’s coastal rim, cities in central and China, such as Wuhan, Chengdu, Chongqing, Zhengzhou and Hefei, and their surrounding provinces, are much more cost competitive with respect to the manufacture of products in which the value-added and process complexity is low.  Meanwhile, the coastal manufacturing hubs, with their knowledge of particular manufacturing industry sectors, are becoming more focused on complex, skill intensive factory production.  In surrounding low cost countries such instances of high productivity levels and industry knowledge are limited.

The biggest issue for Ireland’s importers relates to fluctuating oil prices and their impact on the cost of shipping products sourced from China to Ireland, which is a worldwide occurrence.


Niall O’Reilly

Director for China, Irish Exporters Association

Accurate Ireland – China Business Advisers – Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468


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China – Under The Hood: Is Ireland in danger of becoming too dependent on China?

A wake up call.
Ah the miracle of the global economy. Having just flicked through several online Irish newspapers, trawled through the websites of well-known Irish hardware stores, clothes retailers, and a host of other outlets selling furniture, garden, indoor, outdoor is very clear that:
Everyone in Ireland is coming to depend on what is happening in China…
Look around you… What are you sitting on? Typing on? Looking at? Talking into? They’re all very likely Made in China, right?
Go around your house and get rid of everything that is Made in China. Take it all away and for the next twelve months don’t buy anything from China, even if it has a Made In China component, just don’t buy it.
What would you have left? Scary isn’t it. Life would be pretty damn awkward.  
China makes around 80% of the world’s photocopiers, 65% of the world’s mobile phonesMobile Phone, 60% of its digital camerasCamera, 50% of its computers,Computer 60% of all its bicycles, 45% of its microwaves, 70% of all its toys, and 50% of all its textiles http://www.accuratelimited.com/entry_detail.php?entry_id=3&entry_type=insight. They are all produded for little cost by low-paid Chinese labourers.
This has huge consequences. Surely Chinese-made products are saving you the average shopper in Ireland hundreds if not thousands of euro a year. Chinese production and Chinese spending mean that you in Ireland get cheap goods and low interest rates.
And there is no way out…. There’s a recession, with all its belt-tightening implications, and you need to save all the money you can. So keep buying Made in China (so long as the same product is not still being made in Ireland), and if you see something from China you like but can’t find in Ireland give Accurate Group a tinkleTelephone receiver and we’ll have you sorted in a jig.Sun
Oh, and a final thought……………. for those of you who enjoy the savings and yet complain about the poor quality of Made in China products, China’s sweat-shop labour conditions, and the loss of Ireland’s manufacturing base to China to be blunt: ‘You can’t eat your cake and have it too’, meaning keep slamming China for its numerous inconsistencies, whether pollution, safety, quality or autocratic abuse of power-related and all those annual savings at the check-out counter of hundreds or thousands of euro will disappear. You know, killing the goose that laid the golden egg and all that…………… Ok enough. I’ll stop here and have a mug of Barry’s Tea, one taste that China can’t replicate, even if the mug, water and milk is from China, the tea from Sri Lanka, and the bag itself is from God knows where.

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