China Shifts Away from Low-Cost Factories
Sep 16th, 2010 by charlenelow
Here at Dongguan, China, companies such as the TAL group, Chicony are planning to expand their own business and create their own brand. With this decision, companies that have relied on China’s factories in order to manufacture their brands. Now they believe in closing the wide gap between poverty and the rich by increasing the income wages of China. This will then be able to sustain the economic growth in the world.
I believe that this situation will allow the people in China a chance to grow economically and because of higher pricing in manufactured goods, China companies will have to grow in order to maintain its profit. By taking this step, many middle classed consumers are able to afford the same quality goods as those high named brands such as Nike, Panasonic etc.
Corporations will have to build middle class goods somewhere. If this does not happen, they will be deprived from the developed countries and will be continuing to produce goods for them. And this will not increase their profits at all! China has the materials, the creativity, the factories and its time for them to achieve economic parity.
links: http://www.nytimes.com/2010/09/16/business/global/16factory.html?src=me&ref=business