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Chinese Manufacturer: Ways to Succeed

China's manufacturing models can be identified in three main categories - the professionally managed companies, Dongguan model and the Wenzhou model. All of these connect the numerous business activities of China with the rest of the world.

Professionally Managed Companies: This type of manufacturing model is controlled by persistent scientists and engineers, mostly from U.S., many of which (companies) were formerly State Owned Enterprise. These companies are involved in various viable technologies that flourish the market on a large scale.

Wenzhou model: This model works by manufacturing a product identical to the most appraised product in the current market, introduced by some other company. This model increases the competition in the market, thereby, reducing the price of the product many times below the original cost value. It is a hit and trial model that does not involve any proper planning and technology.

Dongguan model: This manufacturing model is controlled by businessmen through various channels, who are very good in utilizing the opportunities provided by the ever rising market demands of China. But the problem with this model is that the competitors also have same competitive edge as yours and any weak link from your side in the production, distribution and marketing can cost you a lot in the market.

You can use the information of different marketing models and can plan your way to success according to the below given factors of competitiveness:

Developing a Product: The Dongguan model is used to develop the plans, for new products, by keeping the current R&D infrastructure in mind. This helps in developing a low cost product at a much faster pace. The ingenious strength of Chinese manufacturers to develop new products is amazing and it severely decreases the production time of a product.

Variations in markets: The products are developed keeping in view the budgetary issues as well as targeted group of customers, whether you are targeting the domestic customers or the international customers. This is done by developing two or more products with slightly different features, thereby decreasing the price for domestic customer and providing high version of products for international customers.

Packaging ideas: Success of your product is also estimated by its presentation to the customers. A product that has very good features will fail in case it is not nicely packed and presented.

Article Source: http://www.noviceinvesting.com/Article

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