The Future of 'Made in China'
The future of ‘Made in China’
From the formation of new generation once in every 1000 years for the past 10,000 years the same rate has increased to once in 10 years. The current millennium will be the personification if change and the rate at which change happens is just mind blowing. A technology which came 5 years back is already completely obsolete. In this fast changing environment where consumers are the king what the companies need to do is at least keep up with the change if not bring about it.
With the consumerism that acts as a back bone of the capitalistic society and the fast changing preferences, the companies are constantly on the edge of both the technological and creative frontier. Keeping this in mind one realizes that a time lag between the stages of conceptualization, production and distribution is the last thing the companies could afford.
Going back three decades to get some historic perspective the developed nations of the world started resorting to offshoring and outsourcing to cope up with the resource crunch in their economy. Countries like China, Thailand, Indonesia, Mexico and later India became favorable locations primarily because of the vast amount of unutilized human and land resources.
China is a case of particular interest since it best utilized this phenomena. Starting with the establishment of township industries in 1980’s, which gave rise to the establishment of private motives, China started moving away from the old obsolete communist ideologies. Also with the establishment of the special export zones in the coastal China, China started utilizing the vast human resources it had as a result of the baby boom. With the concentrated efforts on improving infrastructure by the Chinese government coupled with cheap labor made China the most favored outsourcing destination for the whole developed world. This obviously gave China an export advantage and helped china maintain a trade surplus with most of the nations in the world.
From the formation of new generation once in every 1000 years for the past 10,000 years the same rate has increased to once in 10 years. The current millennium will be the personification if change and the rate at which change happens is just mind blowing. A technology which came 5 years back is already completely obsolete. In this fast changing environment where consumers are the king what the companies need to do is at least keep up with the change if not bring about it.
With the consumerism that acts as a back bone of the capitalistic society and the fast changing preferences, the companies are constantly on the edge of both the technological and creative frontier. Keeping this in mind one realizes that a time lag between the stages of conceptualization, production and distribution is the last thing the companies could afford.
Going back three decades to get some historic perspective the developed nations of the world started resorting to offshoring and outsourcing to cope up with the resource crunch in their economy. Countries like China, Thailand, Indonesia, Mexico and later India became favorable locations primarily because of the vast amount of unutilized human and land resources.
China is a case of particular interest since it best utilized this phenomena. Starting with the establishment of township industries in 1980’s, which gave rise to the establishment of private motives, China started moving away from the old obsolete communist ideologies. Also with the establishment of the special export zones in the coastal China, China started utilizing the vast human resources it had as a result of the baby boom. With the concentrated efforts on improving infrastructure by the Chinese government coupled with cheap labor made China the most favored outsourcing destination for the whole developed world. This obviously gave China an export advantage and helped china maintain a trade surplus with most of the nations in the world.