China - GembahGembah

Manufacturing

China

THE GLOBAL MANUFACTURING POWERHOUSE

See below for why you should manufacture in China.

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CONSIDERATIONS FOR China

WHAT TO EXPECT

IMPORTS TO USA

$415B

INCREASED

RISKS

IRREPLACEABLE

OPPORTUNITIES

ENGINEERING TALENT

  • Complex product designs or “off-the-shelf” options
  • Electronics, plastics, high-end apparel, stainless steel designs
  • Low quantity orders possible

Unparalleled Supply Chain Network

  • Gembah’s supplier network across broad range of industries
  • Mature suppliers with advanced capabilities

Largest Global Consumer Market

  • Build in China if you will sell to China
  • Taobao (Alibaba), JD.com, Tmall, Suning, etc.

STEP-BY-STEP RISK MITIGATION STRATEGY

HOW to Diversify Your China-Dependency

01

CHINA-DEPENDENT

All of your sourcing, manufacturing and assembly is completed within China. You are paying approx. 25% import tariffs.

02

Sub-components assembled in new market

All manufacturing is completed within China and the finished components are sent to alternative country for final assembly. Possible to avoid Section 301 import tariffs.

03

High-value manufacturing in new market

Molds and specialty tooling sent to supplier in alternative country for core manufacturing. High volume and low costparts continue to be supplied from China.

04

Full transition to new market

All manufacturing and final assembly is fully transitioned to alternative market. Some sub-components or material may still be sourced from China by your suppliers.

Recommendations for your post-2020 product launch strategy

Gembah’s Predictions for 2021

Sustainable Products

  • Amazon “Climate Pledge Friendly” certification
  • 19 independent certification options
  • Increased consumer demand, increased competitiveness

US-China Trade War Tariffs

  • Slow change expected over coming years
  • Do not delay implementing a smart supply chain strategy

Pandemic Impact: Ecommerce Expansion

  • Surging Ecommerce growth in traditional brick-and-mortar retails
  • Increased opportunity
  • Increased competition