Outsourcing to china
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The document discusses factors to consider for a global sourcing project in China, including diversity of product categories available, infrastructure and its regional variations, labor availability and concerns, China's strong economic growth and relatively low inflation and unemployment, and its floating currency exchange rate system. Infrastructure and logistics costs pose the biggest challenges.
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Outsourcing to china
- 1. Handbags >> Wallets>> Accessories> > Shoes>> Jewelry>> Apparel>> Gifts>> A Project for global sourcing
- 6. Infrastructure availability & readability Handbags >> Wallets>> Accessories> > Shoes>> Jewelry>> Apparel>> Gifts>>
- 7. Infrastructure availability & readability Handbags >> Wallets>> • Modern facilities and infrastructure in Accessories> > China vary from region to region Shoes>> • In the past few years, China has been Jewelry>> rapidly upgrading its expressway and Apparel>> Gifts>> high-speed rail system • Biggest challenges: logistic costs
- 8. Infrastructure availability & readability Handbags >> Wallets>> Accessories> > Shoes>> Jewelry>> Apparel>> Gifts>>
- 9. Infrastructure availability & readability Handbags >> Wallets>> Accessories> > Shoes>> Jewelry>> Apparel>> Gifts>>
- 10. Infrastructure availability & readability Handbags >> Wallets>> Accessories> > Shoes>> Jewelry>> Apparel>> Gifts>>
- 11. Labor availability Handbags >> • Favorable Wallets>> – Population: 1.3 billion, over 93% are Accessories> literate > – Work ethnics of hardworking and high Shoes>> productivity Jewelry>> • Concern Apparel>> – Language barrier and cultural variance Gifts>> – Demographic ageing shift – A massive group of migrant workers
- 13. Economic health Handbags >> • GDP growth rate over 8% for 20 years Wallets>> Accessories> • World's largest exporter and second > largest economy Shoes>> Jewelry>> • Relatively unemployment rate Apparel>> – 4.3% in 2009, ranked 40th world wide Gifts>> • Inflation – 5% in 2010 at the consumer level
- 14. Economic health Handbags >> 30,000,000 120 Wallets>> Gross domestic product Accessories> 25,000,000 (million RMB) 100 > Inflation index Shoes>> 20,000,000 (2000=100) 80 Jewelry>> 15,000,000 60 Apparel>> 10,000,000 40 Gifts>> 5,000,000 20 0 0 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
- 15. Exchange rate Handbags >> • Floating exchange-rate system Wallets>> Accessories> • Currency: Ren Ming Bi (RMB) > Shoes>> • Central bank has undeniably decisive Jewelry>> power to influence the exchange rate Apparel>> • Depreciation trend Gifts>> – From 8.2 in 2005 to 6.5 in 2011 – Deteriorate exportation environment
- 16. Exchange rate Handbags >> Wallets>> $1= RMB Accessories> > Shoes>> Jewelry>> Apparel>> 8.194 7.97 Gifts>> 7.608 6.9385 6.8314 6.7852 6.535 2005 2006 2007 2008 2009 2010 Apr. 2011