outsourcing to china
Post on 01-Nov-2014
1.375 Views
Preview:
DESCRIPTION
TRANSCRIPT
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
A Project for global sourcing
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Location
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Great Diversity
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Great Diversity
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Great Diversity
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Infrastructure availability & readability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
• Modern facilities and infrastructure in China vary from region to region
• In the past few years, China has been rapidly upgrading its expressway and high-speed rail system
• Biggest challenges: logistic costs
Infrastructure availability & readability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Infrastructure availability & readability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Infrastructure availability & readability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Infrastructure availability & readability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
• Favorable – Population: 1.3 billion, over 93% are
literate – Work ethnics of hardworking and high
productivity
• Concern – Language barrier and cultural variance – Demographic ageing shift – A massive group of migrant workers
Labor availability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Labor availability
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Economic health
• GDP growth rate over 8% for 20 years
• World's largest exporter and second largest economy
• Relatively unemployment rate
– 4.3% in 2009, ranked 40th world wide
• Inflation
– 5% in 2010 at the consumer level
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
0
20
40
60
80
100
120
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Gross domestic product(million RMB)
Inflation index(2000=100)
Economic health
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
• Floating exchange-rate system
• Currency: Ren Ming Bi (RMB)
• Central bank has undeniably decisive power to influence the exchange rate
• Depreciation trend
– From 8.2 in 2005 to 6.5 in 2011
– Deteriorate exportation environment
Exchange rate
Handbags >> Wallets>> Accessories>> Shoes>> Jewelry>> Apparel>> Gifts>>
Exchange rate
8.194
7.97
7.608
6.9385 6.8314 6.7852
6.535
2005 2006 2007 2008 2009 2010 Apr. 2011
$1= RMB
top related