Quote:
Originally Posted by santosh.s European companies are carrying their legacy image and therefore benefiting from that (undue?) advantage, but it will probably get diluted over time... much like Sony's "Japanese" tag! |
I differ slightly with you on this respect.
Being involved professionally on many levels with one of the leading Hi-Fi mega-companies (Harman International) I've realised one thing.
With the right R&D, perfect attention to detail, detailed schematics, external drawings, dimensions and specifications colours dyes paints, processes, materials specified, with tolerances (and many more things, of course),
You CAN make anything you want in any (proper) factory (with the right tools and people) ANYwhere in the world. With the right supervision, the same quality level that is achievable in Germany, is achievable in China.
What differs is the initial investment and the skilled labour man-hour charges.
And this is where China steps in. With the Governments help on both cheap costings and encouragement in export, China is steadily building up an enviable forex reserve.
But you cannot generalise a country. Just like all products manufactured in India are not of the same quality. Would you say that some low cost soap, manufactured in a SSI plant in Bihar, is of the same quality as some of the stuff made by Godrej?
Or for that matter, did you know that half the stuff well-marketed by Tata, Godrej, Nicholas-Piramal and many other reputable houses is not actually made by them? Pick up a bar of your favourite soap, or talc, or toothpaste or washing powder and read. Chances are they were made in a smaller factory in India, under the supervision of Godrej.
Take APPLE, for example. Outstanding Design, utility, user-friendliness and build quality. All products made in China. Would you say that all Apple products benefit from the "legacy" image? I am sure you wouldn't. If China were capable of designing and producing the iPhone, they would have made it long before Apple and much cheaper too.
What you're paying for, is Steve Jobs' brains. Not a Chinese factories diligence in making it exactly to Apple specifications.
I think it is safe to divide Chinese products into two clear categories.
1) Independent low cost gadgets: Unbranded, economic gadgets that can either be imported using a random name, or an existing brand name. Examples are Mitashi, Pagaria and many more.
These products are completely designed and created in the PRC and produced there at costs, unheard of worldwide.
2) Chinese Factories that produce goods for Big Brands: These factories are allowed no R&D, no designing (Both of the circuit and of the cosmetics) and are strictly supervised by the companies whose brands they produce the goods for. Both the assembly line and the environment of production, with strict guidelines on tolerances. (Example Apple, IBM, JBL, Microsoft and many more). The existing factory and labour is used as a facility to manufacture the required goods.
In this case, when the factory changes (from chinese factory A, to chinese factory B) the end user will never see a different product, because of the stringent guidelines.
In certain cases, companies will set up an office+factory base in China itself. This is done with great support from the Chinese Government, as this would provide fresh employment to men and women.
It is not the first example, but the SECOND example of chinese factories that are wiping away the stigma of "Made in China" rapidly.