Hiranyaksha
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Everything you said make sense except China doesn't have prominent brands which can cater European and American markets.in fact, chinese employers adopt 2 ways to deal the the rapid~growth of chinese labour cost.
one is to move the labour~density workshops to low~income economies in southeast asia ,south asia and afirica.
the other way is to replace blue~collar workers with robots.
Europeans and Americans already have shortage of blue collar workers and most of the factories are been automated. So European and American brands will still cater needs of their market because of existing brand loyalty, ability to innovate and create products of much more value and with new gain capability of producing cheap goods.
However, Chinese brands after automation of their manufacturing and assembly line will still be able to cater needs for markets such as India which is highly price sensitive market.