Exporters find importing a more profitable business

08 Jul '08

2 min read

Receding profits from exports have forced a large number of exporters and companies to switch to importing goods that have a market demand in China.

Rising cost of production coupled with weakened international demand and consequent loss of orders have also played a major role in making imports a better proposition.

Importing has become a lucrative business since domestic consumption level has shown a perceivable rise, especially since the raw material, required for manufacturing goods has to be sourced from outside the country.

One other major reason driving imports is the fact that Chinese tastes and preferences are becoming more internationalized creating a huge market for foreign consumer goods including textiles, garments, accessories and a host of life-style products.

Moreover, it has been observed over the past few years that as the purchasing power of the consumers increase, their spending on foreign goods also go high. This can be explained on grounds that consumers in China have always tried keeping up with the latest world trend.

Besides, Chinese companies have started focusing on purchasing more hi-tech equipment and materials as they move up the value chain. As a result imports in these sectors have also witnessed a considerable surge.

In keeping with this trend, a large number of foreign companies have started eyeing Chinese markets for expanding their exports, creating demand and promoting their products in the county.

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