The race for Chinese purchasing powerPublished 10.09.2008
Chinese purchasing power is a reality that cannot be ignored and today both nkt cables and Nilfisk-Advance have a strong strategic platform in China.
China’s smooth staging of the Olympic Games and huge medal tally gave rise to admiration. The country’s explosive economic development is also commanding respect. With high growth rates, ambitious goals and impressive speed the ‘Middle Kingdom’ is currently cementing its position among the leaders in the world market.
Today’s most successful international firms in China are those who first saw China both as a market and a manufacturing base. Sourcing that is based solely on low Chinese wage costs no longer provides the greatest competitive advantage. Growth in China is so strong that labour shortages exist in a number of development regions. This is forcing up wages, and other nations can offer cheaper labour. But for companies that manufacture for China’s growing market, and also streamline their production, being in China makes excellent business sense.
