Why are Chinese goods so cheap? ★★★

Hope many are having the same question in your mind and i have got the answer for it..

Why are Chinese goods so cheap?
Hope you will like it and if you like it please reply...



why are Chinese products so cheap, why no other country in the world is able to compete with China when it comes to cheap prices?
Some say that's because the labour cost is cheap in China and they manufacture goods which are cheap as opposed to expensive Western goods that make a killing in profit.


Some think it's due to Chinese workers get low pays . China has abundant supply of low cost workforce.


Some may make a reason list as follows:


1-low cost labor
2-class-C quality
3-foundation established
4-chinese's employer abuse its own employee
5-100% profits for employer
6-compete within its own country
7-delivery goods by ship


Why no other country in the world is able to compete with China when it comes to cheap prices,But there are many countries in Asia and Africa where the salaries are similar or less than that of China?

China has many other factors that other countries don't have: quality of work, dedication, international investments in nearby factories that takes in the products, ....etc.

Take Indonesian for example. They don't have that kind of mentality and attitude towards work.

If you're an investor yourself, would you pour in your money in Indonesia and Africa? Or would you be more confident of Chinese workers?

The choice is yours. But to others, they've chosen to place confidence on Chinese productions capability.
What do you think of this?


Experts analyse (http://in.rediff.com/money/2005/oct/20bspec.htm):


India, China, Japan

Comparison between the Indian, Chinese and Japanese two-wheeler industry is inevitable. When discussing China, a few points have to be kept in mind.


China can afford to price so competitively because it does not take on certain costs, such as the cost of customer insight and product innovation, and of making mistakes until you get it right.


The absence of IPR (Intellectual Property Rights) means that products are quickly and easily copied. When Honda launches a product any where in the world, China copies it without delay.


Chinese motorcycle manufacturers don't make huge investments in marketing. In China, customers' expectations of products are not high. If a product breaks down, parts are replaced. There is no concept of service in the automobile segment. They don't spend on under-standing the customer.
Copying collapses time and eliminates the learning curve right through the supply chain.


Saving on tax is another area. A company declared production of 300,000 units but made 500,000. Labour costs are lower, and more importantly, labour is largely subservient.


Despite these factors, Japanese companies are making a comeback and are recovering lost ground, particularly, in markets such as the Middle East, Europe and South East Asia.


If one looks at the balance sheets of Chinese companies, not too many are making money. One Chinese company was recently taken over by an Indonesian group. Also one must compare like to like, component to component.




Hope Now you Understood!!!
Thanks

 

Because , no one gives warranty upon chinese goods......

 

Yeah this too an important point mate...

 

Well I guess the number one reason is cheap labor.

 

There's one more possible important factor :

The Yuan is undervalued! (quoted... meaning.. i'm not sure)

So, Chinese will pay a premium when importing goods, or paying in USDs, so they'll have to resort to buying locally, but they'll make good profit when exporting.

 

Funny but truth for most products...

 

haha, yeah totally.

 

Take Indonesian for example. They don't have that kind of mentality and attitude towards work.

how can you say this?
have you invested in Indonesia?
Do you really know about Indonesia?
Have you ever lived in Indonesia?
Please don't say anything if you don't really know about us.

Yes, many goods from China are cheap. But they have low quality.

 

because its substandards.. it usually crash in just a day

 

Apart from abundant work force which comes little cheap, they have erected huge manufacturing facilities, giving them the benefit of low cost associated with the economics of large scale.

One other over riding factor is also that in order to keep the costs very low, very little attention is paid to product quality, making them highly sub-standard!

Regards,

RightMan

 

Exactly mate

 

Yeah they have their companies form beginning itself mate...

 

They are of Low quality but some even stand for Year depending on your luck mate...

 

Yeah Chinese are hard workers mate...

 

No mate i have just googled and found here
Hope you are Indonesian sorry for that

 

Yeah mate that's too

 

Most of their products are cheap because their products are of poor quality... Just take Chinese toys for example, it is very cheap, but they are poor quality and also dangerous for kids.....

 

Yeah so only America banned their products mate...

 

very aptly said ........flooding world with their sub-standard products is their main objective...kill the competition

 

main reason is cheap products only...most of them won't care about the quality and warranty