We can’t deny there are plenty of products scattered in the market are from China. Why are those products from China are very cheap compared to the leading brands? Among these products are television manufactured by them.
We all know that Chinese are good when it comes to running their business. Even they can only acquire small profit, but with continued business and volume sales, it is okay with them. They are very prudent because anything that can be of use, they recycle it so that they can use it again.
In China, there are plenty of products being manufactured like smartphones and appliance that’s include televisions. The leading television brands from China are TCL, Hisense, Skyworth, Konka, Haier, Changhong at Pensonic. TCL is the largest TV mnufcturer in China and third largest in the world. Hisense is known for advance technology and innovation in TV manufacturing and continuously becoming popular in the US and European market. Even the smartphone manufacturers joined in manufacturing their own television like Xiaomi, Realme at Huawei. There are also new brands found in Shopee and Lazada like COOCAA and CHIQ are also from China.
What really are the reasons why TV from China are cheap?
1.LABOR COST
China is very rich when it comes to their human resources. This country has approximately 1.3 billion population that’s when many people here are looking for jobs and one of the reasons why they have cheap labor cost. Employees need to work extended hours to earn more for their living. Hisense, owned by the state, has 80,000 employees, TCL has 35,000 employees while Haier has 99,000 employees. This is the proof that appliance industry in China needs plenty of labor. China is one of the countries with the lowest labor cost in the world, that’s why products like appliances can be sold in a cheaper price.
2.GOVERNMENT SUPPORT
Manufacturing companies get a needed support from their government. Their government knew the importance of these companies to their economy that’s why they are helping the big companies with new way of transportation and huge highways, 24 hours cheap electricity and lenient labor laws. The government support these companies to gain more profit because it will bring improvement to their economy. The huge support from the government helps companies in maintaining lower price of products in the market.
3.PRODUCT EXPORT
Companies are encouraged by the government to export their products out of China to different parts of the world. The government collect less to those companies exporting their products, that’s why appliances like television maintain a low price wherever part of the globe it may reach. Companies that export their products more, the better the government supports given to them because the government knew there will be more profit in return. Export from manufacturing companies contribute a lot to their GDP or Gross Domestic Product, that’s why the government encourage them to export their products.
4.CHEAP MARKETING EXPENSE
Chinese are looking for marketing ways not to spend a lot like limiting them from having showrooms. They don’t want to spend so much in marketing activities that’s why they can maintain the price of their products low. The cheap price of their products is their marketing promotion that attracts more consumers to buy the product. The consumers are attracted to superb specification which is advance compared to the leading brand but very easy on the pocket.
5.ONLINE SELLING
In China, most commonly consumer electronics like television and smartphone is being sold online. Companies don’t need to look for distributors and dealers to sell their products. In this way, products can reach directly to the consumers, thus preventing the increase in price. Because there are no dealers commissioned, there is no need to add on the price, making the price low. There are many people buying online because of convenience especially for the busy people every day.
6.PRODUCT RESEARCH
It is a common practice, when a company wants to introduce a product in the market they conduct research to ensure the success in the market. Many companies spend plenty of time and huge amount of money on research, and that has a very huge impact on price. However, in China, companies can spend less on research because they can just copy someone’s product, and that is one reason why their products are cheap.
7.QUALITY
We know that products from China is not durable. The quality of the products is very low, but not very low. The truth, China is manufacturing good quality products but leave the choice to the consumers. Of course, if you choose to acquire better quality product you need to pay a bigger price. That is the reason they leave the choice to their consumers. They can choose a cheaper product that won’t last long or expensive one that will last long. The quality of products is one of the bases why products from China are cheap.
Now, you understand why appliances like television are cheap if it originates from China.
This video is not intended to degrade the products from China, but to make us understand the reason why they can manufacture and sell cheaper products around the world.
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