Organisations have been having their products mass produced in and around Southern China (now recognisable world-wide as the manufacturing capital of the planet) for more years than I care to remember.

The main reason for this is because the currency in China (Yuan) is worth a lot less than British currency, American currency, or most other currencies for that matter.

And there we have it, pretty much THE reason most products are sourced in China. Cost. But what more reason do you need it it will save a great deal expenditure? There are a few more advantages, and a couple of disadvantages.

As far as the advantages go they are few, but pretty big. The price I have already mentioned, but there is a severe difference in the currencies. For every one British pound you get 11.2 Chinese Yuan, so you really can pay peanuts for what you want.

Another advantage is the close proximity you gain to their local trading environment. If you can get your company recognised in the Chinese trading industry it can only benefit your organisation. Also there is a good chance that you will end up a lot closer to the raw materials you need to make your product, therefore saving on the acquisition of your raw materials as well.

The disadvantages, I would say, are severely disproportionate to the advantages in that they seem relatively insignificant. The main disadvantage is the shipping cost. Actually getting your produced product back to the UK/USA/wherever you are based can be a bit pricey, but compared with the money you will have saved on the actual production, I think this is an insignificance.

As well as that, there’s the time that shipping takes. This is probably more of a disadvantage as this could result in loss of turnover if demand for your product is high enough. Also, the production might be a little sloppy to start with, but if you get a good sourcing company to sort it all out for you, they will ensure that this doesn’t happen.

So to summarise, it is clear to me that it is far more advantageous for companies to mass-manufacture their goods in Asia than to do it domestically.