Location
The area we have chosen to work in, South West China, is the fourth largest trading and manufacturing area in all of China. The two main cities in this area are Chengdu and Chongqing, which services over 200 million people. Beijing, Shanghai and Hong Kong, on the other hand, are larger in production but have very high wages and extremely high real estate costs. This makes their end product more costly. South West China's advantage is their much lower production costs. Furniture prices in SW China, for example, are approximately 25% lower. This by far out shadows any shipping cost variation. The Yangtze River runs right through Chongqing so all products can go by water to North America.
To lower costs, the current trend is for the large Chinese coastal city companies to move their manufacturing bases to this area. This, combined with the huge Chinese minority group labor pool available to draw from, makes it the obvious choice for their future. South West China, with Chengdu as its capital, is truly the new business frontier in China. Today, you will see more construction and more investment here than anywhere across this huge country.
|