Anyone with an ear to the ground in China sourcing is probably at some stage of wondering whether they should be shifting attention inland, or to Vietnam, or India, or Cambodia. With export prices rising in China — especially its coastal region — importers need to be mindful of the issue, even if they decide not to take action for now. However, as David Dayton cautions from the vantage point of an experienced in-country buyer, the decision involves more than a simple price comparison.

By David Dayton

David Dayton on China prices Making the decision to move your sourcing or manufacturing to inland China or another country requires the same kind of forethought as your original decision to come to China. And the first questions you need to ask yourself concern the overall financial viability of moving anywhere.

Really, honestly, why are you considering moving? Because you’ve confirmed prices are better elsewhere, or only heard that’s the case? Because a competitor in your industry is suddenly doing things that are making you wonder? Because factories and industry resources are moving and you need to keep up? Because it is the popular thing to be talking about?

Honestly assess your reasons
Reasons to move should not include any version of “Because we heard it’s cheaper” or “Because other companies are doing so.” Before you say, “Of course I’d never do that,” you need to be honest with yourself. Have you done your homework and is it really cheaper?



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