The demand of consumers around the world for goods is becoming more and more refined. This accelerates the “survival of the fittest” in global commodities. China-made goods have been increasingly replacing brands made in the United States, Germany, Japan, and South Korea that have been famous for decades. What’s more, Consumers around the world also have deeply realized the value of goods made in China.
India, South Korea: China-made goods are irreplaceable
In India, products made in China has become a symbol of advanced productivity and high quality. For instance, The Hindustan Times quoted the results of a survey that interviewed 8973 Indian consumers. It showed that 83 percent of the consumers said that the price and quality advantages of Chinese products were irreplaceable.”We can’t stand a day without products made in China,” one participant said. Although India has devoted itself to manufacturing in recent years, Indian consumers cannot do without products made in China.
In the Indian market, smartphones made in china have replaced smartphones made in South Korean. What’s more, South Korean executives have long been aware of this. South Korea’s Asian economy reported in 2017 that the president of a large South Korean enterprise said he really felt that Korean manufacturing was being replaced when he went on a business trip to China. “Just a few years ago, most Chinese people use some Korean brands of mobile phones, but now I see that most people hold products made in China,” he said.
Germany, Japan: Products made in Germany and Japan are eclipsed
As it relates to manufacturing in the past, people used to think of Germany and Japan. In recent years, however, the brands made in China have overshadowed those manufactured in Germany and Japan.
People have criticized products made in Japan for its continuous scandals in recent years, such as counterfeiting. Nihon Keizai Shimbun raised the concern that “Japan’s technology brand has faded” months ago. He noted that Japan’s innovation ability has not improved from four aspects: basic research, application and development, profitability, and metabolism. German television reported a few weeks ago that Germany lags behind China in many fields, such as electric vehicles, artificial intelligence, high-speed rail, and 5G technology. According to the Washington Post, Professor Fletcher, director of the German Institute for Economic Research, said Germany-made products were being replaced.
The United States: Can’t live without goods made in China
In the United States, with advanced productivity, more and more consumers prefer products made in China. Guo Hong, an Asian American, said a few months ago that American consumers relied heavily on China-made products and that almost all stationery in children’s schoolbags, such as pushpins, glue, and stickers came from China. A reporter asked American companies, “Can other countries make the products you need?” The response was: “No, only China has a complete production chain.” And when the reporter posed the next question – “Do you have any other substitutes for products you importing from China?” – the response was, “No, American consumers only like this Chinese product.”
China’s manufacturing industry ranks first in the world and is the only country that functions within all industrial sectors. This means that any manufacturing enterprise in the world can complete one-stop production and processing in China. It can also complete the sales link in China’s huge consumer market in a one-stop manner, so they can realize the return of profits.
Will Vietnam replace China as the next world factory?
American companies have made it clear that it is unrealistic for Vietnam to produce more high-quality goods. Flannery was the president of Regalo International, an American baby fence company. He said if they move the production line to Vietnam, the cost would increase by at least 50%.
One of the advantages of Vietnam is that the price of Vietnamese labor is relatively low. The Jakarta Post reported on October 17th that Vietnam’s labor force is overwhelmingly agricultural. This could dampen the pace of Vietnamese manufacturing in the short to medium term.
Chinese manufacturing is moving towards a more intelligent and information-driven process. And Vietnamese manufacturing is in the initial stage of OEM production. Without advanced technology, concepts, and management methods, it is difficult to participate in an extensive and more precise division of production in the world and adapt to the technological changes in the global economic transformation period.
All the above signs indicate that in the process of world economic rotation, China, which is rising strongly, has become a synonym of the terms “high quality” and “irreplaceable.”