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Made in China Anchorbird Wholesale Global Sourcing

“Made in China” and its 5 hidden changes

July 15, 2020

Table of Contents

“Made in China” and its 5 hidden changes

Transformation towards a new era!

Many investors around the world identify a great opportunity in importing products commonly global sources such as China. Its manufacturing capacity provides competitive prices that represent a significant margin in the country where the goods are sold. Nevertheless, products “Made in China” have been cataloged and perceived for many years of substandard quality throughout industrial development. 

Undoubtedly, China thrived with important labor but lacked know-how in the early stages. The most significant strategy in automation was to acquire knowledge from foreign companies investing in the country. Nowadays, brands “Made in China” competing in quality with well-known global brands. How has the Chinese economy transformed technology advancements to offer quality products? Has consumer perception changed?

The world’s largest “factory”!

The list of products not “Made in China” became rather small. China has become the world’s largest manufacturer, so it should not surprise us that on a visit to a company in this country we can see the high standards they have reached, providing excellent service and very competitive products. Still, this was not always so. In the beginning, when Deng Xiao Bing opened the economy to the world in 1978, citizens with no greater skills saw this as an opportunity. 

It was the perfect combination: foreigners looking for inexpensive labor and locals trying to increase their income. The dynamics worked this way: A foreign company needed parts to build machines in the west. What we know today as well-established factories, began in a fenced-in yard by replicating required machine parts abroad. The situation has changed dramatically for the better in today’s China.

Specialization "Made in China"

Specialization is an important aspect to consider about the mastery achieved in Chinese manufacturing. When looking for china wholesale suppliers, we realize that many of the offers come from the same geographic area. Industry clusters have raised the standards for products “Made in China”. The agglomeration of companies that produce similar products not only reduces costs but also helps the circulation of knowledge. Another element to consider is the higher expectation of customers. The pressure for better product quality encouraged the migration of foreign workers to the country.

Where cultures meet

Although most of the work is done by the Chinese, there was a time when international companies operating in China realized the need for supervision by foreigners to meet the exact characteristics demanded by customers. Therefore, the country can provide extremely good products, although there is still a demand for lower quality goods.

Historically, the “Made in China” products list stood for an alternative expression for inferior goods, and this has not been an obstacle to sales. Customers around the world have been drawn to the idea of paying less for an item, regardless of its lifespan. Consumerism could explain what irrational behavior might mean to some.

Generally speaking, the marketing of knockoffs from well-known brands like Chanel or Gucci is prohibited, however, fake handbags may be found in certain New York markets, which symbolizing just a fraction of the list of brands “Made in China”. Similarly, African and Arab merchants often visit Yiwu markets in Zhejiang province in search of low-priced items to meet the demand of low-income economies. In particular, the interest in these types of articles comes from places where they meet customs’ clearance procedures. This is not always the case, and many times the “Made in China” wholesale would offer different quality products according to the target market.

Adaption to global standards

In countries where product verifications and testing are rather strict, China must have an offer that meets those requirements. That’s why in some cases when reaching customer service, there might be some inquiries coming along about the destination of the goods. Undoubtedly, there was pressure from governments, especially from the United States and the European Union concerning safety issues. 

Several scandals involving merchandise “Made in China” pushed authorities in Beijing to take action. For that reason, many companies need to be inspected and evaluated throughout the year to get the required certifications to export their products. Market forces also played an important role. There are certain industries like tech that have faced extensive global competition and were required to increase the quality of the products. Many people are choosing to buy phones, cameras, tablets produced in China since their prices are relatively cheaper compared to international famous brands, but the features remain the same, or in certain cases, they are even better. Moreover, further actions have been taking place that directly impacts quality improvement matters.

It was the perfect combination: foreigners looking for inexpensive labor and locals trying to increase their income. The dynamics worked this way: A foreign company needed parts to build machines in the west. What we know today as well-established factories, began in a fenced-in yard by replicating required machine parts abroad. The situation has changed dramatically for the better in today’s China.

Planning for independence

Released five years ago, “Made in China” 2025 is the plan from the Chinese government to subsidize various sectors to reduce China’s dependence on foreign technology and promote superior quality production. Chief among these are electric cars and other new energy vehicles, next-generation information technology (IT), telecommunications, advanced robotics, artificial intelligence, and the sheer endless list of the “Made in China” product directory. Global tech leaders such as Huawei or ZTE are among the targeted companies receiving major incentives. As a result, three “Made in China” smartphone brands: Huawei, Xiaomi, and OPPO are within the fifth largest smartphone companies in the world.

Perhaps when going into all-for-one-dollar stores, there are still misconceptions that goods fabricated in China are all bad, but as it has been previously exposed, the reason why China keeps producing them is that there is still a market for it. China is working extensively to provide a changing reputation for its stigma of “Made in China” and the related quality of its products. Despite this, it is still advisable when importing in large volumes to acquire an independent shipment inspection to avoid defective merchandise.

Source: https://www.cfr.org/backgrounder/made-china-2025-threat-global-trade

Anchorbird is here to assist you in all the stages of your global sourcing experience. Book our factory inspections. 

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