Over 25% of the world’s production is done in China with one of the few growing markets in the world. The process to move another 300 million people from countryside to cities under the next decades with further rise in living standard will fuel continued growth.

There are many opportunities in the China market. But, to be competitive long term, local production is an enormous advantage. This does not have only to do with costs, but possibility to adapt and localize and not the least have quick delivery times.

Also, there has been a time when imported foreign products has had an image of superiority, but as quality goes up in nearly every aspects of production and life in China so does the image of Chinese produced products.

Not to participate directly in the market could mean that Chinese competitors take over and soon with a large home market becomes very competitive exporters also in the global marketplace.

To start manufacturing in a new country is always a challenge. Not everyone have enough internal resources to support such a project.  This is where Scandic Sourcing comes in. With a technical team on site, with western engineers, we assist and support were it is needed to get the project rolling. This includes feasibility studies, project management, factory construction, recruitment of staff, set-up of administrative systems and interims management.

After a few months of low activity due to the COVID-19 situation our team is now actively scouting new factory buildings in the greater Shanghai area. There are many possibilities and local governments eager to support.

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While the COVID-19 virus was only ravaging in China there was much talk about the need to develop alternative suppliers in e.g. South East Asian countries such as Indonesia and Vietnam and India.

Now, when the virus has become a global pandemic the situation looks a bit different.  China has weathered the crisis comparatively better than other countries. While it has been a 2 month disruption things are now back to normal, while the rest of the world are still right middle of it, with varying degrees of success in the response. Vietnam seems to have handled it very well. In Indonesia it took a suspiciously long time before they started to report any cases and the situation in India looks frightening.