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Outsourcing to china

a overview

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Outsourcing to china

  1. 1. Handbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>> A Project for global sourcing
  2. 2. LocationHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  3. 3. Great DiversityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  4. 4. Great DiversityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  5. 5. Great DiversityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  6. 6. Infrastructure availability & readabilityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  7. 7. Infrastructure availability & readabilityHandbags>>Wallets>> • Modern facilities and infrastructure inAccessories>> China vary from region to regionShoes>> • In the past few years, China has beenJewelry>> rapidly upgrading its expressway andApparel>>Gifts>> high-speed rail system • Biggest challenges: logistic costs
  8. 8. Infrastructure availability & readabilityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  9. 9. Infrastructure availability & readabilityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  10. 10. Infrastructure availability & readabilityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  11. 11. Labor availabilityHandbags>> • FavorableWallets>> – Population: 1.3 billion, over 93% areAccessories> literate> – Work ethnics of hardworking and highShoes>> productivityJewelry>> • ConcernApparel>> – Language barrier and cultural varianceGifts>> – Demographic ageing shift – A massive group of migrant workers
  12. 12. Labor availabilityHandbags>>Wallets>>Accessories>>Shoes>>Jewelry>>Apparel>>Gifts>>
  13. 13. Economic healthHandbags>> • GDP growth rate over 8% for 20 yearsWallets>>Accessories> • Worlds largest exporter and second> largest economyShoes>>Jewelry>> • Relatively unemployment rateApparel>> – 4.3% in 2009, ranked 40th world wideGifts>> • Inflation – 5% in 2010 at the consumer level
  14. 14. Economic healthHandbags>> 30,000,000 120Wallets>> Gross domestic productAccessories> 25,000,000 (million RMB) 100> Inflation indexShoes>> 20,000,000 (2000=100) 80Jewelry>> 15,000,000 60Apparel>> 10,000,000 40Gifts>> 5,000,000 20 0 0 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
  15. 15. Exchange rateHandbags>> • Floating exchange-rate systemWallets>>Accessories> • Currency: Ren Ming Bi (RMB)>Shoes>> • Central bank has undeniably decisiveJewelry>> power to influence the exchange rateApparel>> • Depreciation trendGifts>> – From 8.2 in 2005 to 6.5 in 2011 – Deteriorate exportation environment
  16. 16. Exchange rateHandbags>>Wallets>> $1= RMBAccessories>>Shoes>>Jewelry>>Apparel>> 8.194 7.97Gifts>> 7.608 6.9385 6.8314 6.7852 6.535 2005 2006 2007 2008 2009 2010 Apr. 2011

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