Globalization and China’s Social Trends

Most of us know that globalization has been beneficial for our world in many ways. It has allowed Western consumers to enjoy products at a more affordable price. Likewise, globalization has stretched out to enable underdeveloped countries to have an additional source of income. In the end, this promotes overall economic prosperity to those particular countries, as well as to China and the US.

Changing Preferences Around the World

China has been the largest manufacturing bases for Western products for many years. China’s growing economy and the manufacture of Western goods has not only lifted millions of people out of poverty it has exposed them to aspects of the Western lifestyle. Likewise, as the two countries expose their unique products to one another Chinese goods have increased in popularity in the United States.

The Chinese people’s appetite for Western goods is an economic opportunity for U.S. businesses that have been moved their manufacturing facilities to China. Many U.S. companies have noticed this trend and have modified their marketing strategy. In fact, businesses produce their goods in China and send them back to the U.S. and Europe. Today, however, they also focus on the local Chinese market for additional product sales.

Chinese Consumer Trends

U.S. businesses that have moved production to China carefully consider local consumer trends to grow their sales. Currently, the three consumer trends in China making the biggest impact are:

Economic Independence:

The development of the middle class and greater financial independence has caused a switch in demand from basic necessities to high-quality, “non-essential” products. The Chinese markets have a huge demand for fashionable clothing, better home products, and hi-tech electronics and entertainment products.

The Sophistication of Demand:

Consumers are more aware and much more knowledgeable about products in the market. Social media has allowed teenagers and young adults to better connect with the world. Thus, they’re able to share instant reviews on anything and everything, like restaurants, retail stores, and even what to read. Offshore manufacturers now focus on relevant, targeted “marketing channels” rather than the previous hit or miss “mass marketing” method.

Customization Wins:

Chinese markets are full of mass-produced, homogeneous products. And Chinese consumers understand this better than anywhere else because they’re involved in the production of these goods. They look for unique, customized products that factories design specifically for their needs. In fact, they now prefer new and creative products over homogeneous goods.

Is Outsourcing in China Still a Viable Option?

Companies from all nations have moved offshore and chose China as their offshore manufacturing country. This is especially the case for many US companies who have either experienced challenges with domestic factories or need to save costs. Even considering the tariffs on goods imported from China, China remains a legitimate choice for offshore manufacturing and still should be considered. Companies that have a unique product and choose to work with good-fit Chinese factories can still do well despite the tariffs.  It depends on each company’s situation and the specifics of their products.

Offshore Manufacturing Options

If your company is looking to outsource make a connection with ITI Manufacturing. We are the best option for a one-stop source for offshore manufacturing whether it is in China, South Korea, or Vietnam.  The number of options and choices are more complex than ever.  Take advantage of our 45 years of experience focusing on competitive delivered pricing, consistent and guaranteed quality, and timely delivery.  Let us help you make the right decision for your offshore manufacturing choice.  Call us today at 281-242-7030.

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