In the past two decades, Shenzhen, China has become one of the number one manufacturing destinations for most brands. Shenzhen has attracted several leading companies from all over the world and all walks of life. A series of factors have made Shenzhen the most popular destination for overseas manufacturing. Here are the top five reasons for Shenzhen’s high score.
1. Cheap labor
One of the important attractions of manufacturing products in Shenzhen is the availability of low-cost labor. In fact, according to statistics, manufacturing in Shenzhen can help reduce costs by 30% to 80%, depending on the additional attributes of the product and the labor intensity of the production. In recent years, with the improvement of China’s economic level, its advantages over other developing countries have gradually faded, but it still has a very high cost performance for sparsely populated developed countries and regions.
2. Strategic market position
Some growing consumer markets such as China and its neighboring Southeast Asia, Japan and South Korea have brought huge room for brand development. Shifting production to Shenzhen will allow manufacturers to enter China’s fast-growing market with a very low cost and short cycle.
3. Low raw material cost
At a time when manufacturers in all industries are struggling to cut expenses, Shenzhen offers a cost-effective option. Access to affordable raw materials can greatly help reduce manufacturing costs. In addition, Shenzhen’s industrial chain is complete with complete supporting facilities. For any company entering the Chinese market, it is becoming more and more important to have local suppliers.
4. Get in touch with cutting-edge technology
In the era of globalization, Shenzhen realizes its market potential and has been developing high-precision technology in recent years. The huge investment in research and development has helped China gain an advantage over other emerging countries. At present, Shenzhen’s robotics, 5G communications, electronic hardware, and smart manufacturing lamp industries have all achieved world-renowned achievements.
5. Evolving Supply Chain Management
In order to take full advantage of the growing interest in China as a manufacturing center, many Shenzhen suppliers have accelerated their pace in recent years. By finding a reliable local supplier, international companies have a simpler and more effective option to increase production. This encourages more Shenzhen suppliers to update the latest technology and improve their standards to attract more customers.
With the growth of the market, the acquisition of low-cost labor and technological advantages, Shenzhen is becoming a favored destination for overseas manufacturing industries. Call us today and let us give you a quote to see how much money you can save by bringing your products to Shenzhen for manufacturing.