Mr. Zhang who is a sports fan and white collar staff, a day not long ago he went to a sportswear store to buy a pair of shoe for himself, to his surprise he found shoe with same brand and same style sold at different prices, for instance the same style of waterproof outdoor shoes with brand of Colombia that made in China sells at price of RMB1399 yuan while made in Vietnam it sells at 989 yuan. In this store the same style of bag, leather shoes and apparel with same brand also sell at various prices. Products made in China are much expensive than those made in Vietnam, Indonesia and Bangladesh.
Mr. Zhang felt puzzle and wanted to know the solution.
So Zhang approached to an industrial expert to find out the reason. The expert told him it is nature phenomenon because production costs in 2010 have surged at least 30% in China, in term of labor costs the lowest wages in China are much higher that that in the countries of Vietnam and Bangladesh, even Indonesia.
The expert said further despite of that these countries can t replace China position in manufacturing in short term as our advantages in management, supporting industries, labor skill remain stronger and high-end products are still processing in China. Of course low price imported products will bring more benefits to Chinese consumers, added the expert.
