Made in China = FAT Profits

When we look at the retails clothing sector, we will notice that the majority of consumer clothing is made in China. Global economics has enabled trade to take place at an exponential rate.

(image Westfield Southland - Made in China)

Quite simply put the sheer mass of people has driven the price down for the manufacture of goods, as labour becomes more and more cheap. Realistically no one can compete with countries like the industry heavy weights, China and India for cheap labour.

When we associate with these places, we automatically think of our hip pocket, i.e. that the product made in China is a bargain at our doorstep. Clothing has one of the higher mark ups for consumer goods. Buying internally from a wholesaler, it is not uncommon to mark up the items by 300%. Therefore when the shops have a 50% reduction in price, there is still plenty of room for profit.

It is also not uncommon to have items landed in the country for $20, then sold at $80-$120, at a retail level. But what would one think of such a scenario, that if a clothing outlet lands an item, say kids jumper for $1.50, then retails it for just under $50 ??

Many years ago, Myer was under scrutiny for importing a shirt for $1 then retailing it for $10. Naturally, there was a perfectly legitimate reason (changed hands via few shelf companies) , as touted by Myer.

Bunnings sells cheap tools, GMC (acronym for Garbage Made in China?), for high profits.

Wal Mart is the largest (profit wise) retailer thanks to the help of China. This is explored in the video Is Wal Mart good for America

Profiteering or just plain Consumer Rip – Off??