Why is that all products from CHINA are very cheap here in the Philippines??

Philippines
March 7, 2007 9:06pm CST
Who among you visited the Divisoria and Binondo area here in the Philippines. Trades of Chinese products here (Made in China) is very cheap meaning 4 or 5 times lower than local and imported made goods. That's why these shopping places are so crowded and that there are so many shoppers than any other places in the Philippines. Why is it so? I mean quality is just the same. But why china can produce such very low priced products?
8 people like this
30 responses
@knockout (99)
• United States
8 Mar 07
Maybe because you're so close or that China is just your main producer. They know who to go to when they want to sell a good. It's all about supply and demand.
2 people like this
• Philippines
8 Mar 07
We are far from China. And yet other products from countries near us is more expensive. They said that cost of labor in China is low. But I doubt it. Cost of labor is very low here in the Philippines yet goods and service are very costly.
1 person likes this
• Pakistan
8 Mar 07
Chinese products are cheap everywhere. I can share my experiences from two countrie in Thailand and in Pakistan. But you cant say its same quality. There is hell of difference in quality of Made in Japan and Made in China. But as people are getting the same looks and features at low price and mostly people cant afford the high price products, they prefer chinese products.
@xeron0719 (812)
• Hong Kong
8 Mar 07
The only reason is that the production cost in China low, so that they can maintain a low price for selling goods to your place. Another reason is that you country is not so rich, and so China may lower the selling cost for your country, so that it can also maintain a relatively low price for the costumer. Actually, I am not sure about that. This is just my opinion. Is it the case? Or is there any reasons behind?
2 people like this
@creationhub (3070)
• Malaysia
8 Mar 07
Basically, the chinese are very hard working. Raw materials in China are plentiful. The labour is cheap there because of the large population. I heard they can move mountains overnight. True or not, I do not know. In fact, the chinese products are flooding not only Philipines market, but all over the globe.
@charms88 (7547)
• Philippines
8 Mar 07
Hello berry, I'm also from the Philippines. Though I rarely drop by at Divisoria, maybe 3 times only in my whole entire 35 years of life...can you imagine that? And yes, China products seems to be gaining popularity nowadays. You see it everywhere. Even the branded name also came from China too. But labor in China is really low. More lower than here in our country. But we have to admit the stuff we purchased at Divisoria will not last long.
@lpipe0240 (1162)
• United States
8 Mar 07
It must be becasue they work for lower wages then other countries. Not that that is bad or anything but it is just the way it is. I know in the US it is cheaper to by things made in China.
1 person likes this
@tamanash (952)
• India
8 Mar 07
its not just philippines,chinese products are cheap everywhere in the world.and the main reason behind it is low labour cost,good technology and average material used.chinese products are everywhere.but i think chinese electronic items are not upto mark.and most importantly they dint come with warantee.their quality is also not upto mark.no doubt there are some good company their in chine who produces quality products but their prices are par with rest of the market.so i recommend purchasing chinese products with care.
• Philippines
9 Mar 07
you're RIGHT. we should take a lil care when buying chinese products. But not all are substandard. I was looking for a running shoes to buy. cant't find here Nike Shoe that was't made in China. All malls here including Ayala Malls, power plant and rockwell have their NIKE Products made in China. Even the products of NIKE in DUTY FREE PHILIPPINES are made in China. The quality and price I may say, its just the same as what is made in the US. But I would say again.. not all.
@sincere (178)
• India
8 Mar 07
Its not lol,that chines product are cheap only in your country,its cheap in india also.Main reason why china's product are cheaper than any other country is that,china has easily available and great source of raw material which other country has but less than china.this cheap product has good contribution in China's growing economy.
@subspeed (160)
• Maldives
8 Mar 07
YEAH TRUE ... their total cost of production is very low ... so they can sell their products for a lower price and they do that ...
@Lifeless (2638)
• India
9 Mar 07
The Made in China goods are cheap all over the world. Even in India, they are available at unbeleivable prices and they also last long. So, most of them are indeed value for money. The bulk of the china's economical growth has been due to the export of cheap goods all over the world. The Chinese economy is growing at a mind blowing rate, if u look at the statistics. Industry experts believe that China and even India will overtake US by 2050, or maybe before.
@cefaz_21 (2597)
• Philippines
9 Mar 07
I am a frequent shopper of divisoria mainly because of the cheap products but I guess not all the products there are china made and not all made in china products are of good quality,like pencils, crayons etc..it's way cheaper but poor in quality tho I musta dmit there are quality products too. I think they are cheaper specially in divisoria because a lot of storeowners there don't pay taxes (heard about recent BIR and DOTC raids?) and maybe soe of them are being smuggled..just my opinion.
@Lirio29 (24)
• Philippines
9 Mar 07
One of the reason that china can produce cheaper quality is because they are paying the workers there by piece rate, so can you imagine how fast they work to get into the quota? very fast every seconds counts and every minute means money for them, plus workers can work late but the employers need not pay them o/t pay. Also raw materials (like in garments) there are cheaper and they have wide range of choices, unlike here in Philippines we have very few producers of fabric.
• Philippines
9 Mar 07
why cheap???most of the goods where smuggled,they have no tax papers.i once engaged in this business before,the goods were brought here together with some illegal chinese traders.they enter the backdoor gate somewhere in the north and south part of the country.you never wonder why is that there's so many vendors in binondo and divisoria who doesn't know how to speak tagalog or even english?,this is because they are engaged in human trafficking.so to all of my kababayan,just a reminder ,don't patronize chinese illegal good.they are substandards,they also tend to put down small enterprises here in the country.
• Serbia And Montenegro
9 Mar 07
I think some products made in China not only cheap in your country but all the other countries as well. Why? I would say because they are the most population in the world, hence manpower supply is high.
• China
9 Mar 07
i konw it, chinese goods made in china, all of us konw china is the biggest popular country,so you can paid a workman less than other places in the world ; not at all the goods is cheaper than other places. the man who take chinses goods to other country will get a lot of money,and the price is still cheaper than the local price.
• Philippines
9 Mar 07
I have a friend who sells stuff from china and these are her reasons why it's cheap: 1. the labor is way cheaper compared to the philippines. 2. they mass produce their products. 3. there are times that they do not pass on the bureau of customs.
@dawgmart (76)
• Philippines
9 Mar 07
i think that chinese goods can be sold cheaper because of their mentality that even if they just make a little off a certain product, since its cheaper than the rest more people will want to buy their product rather than from others and in the end they still end up making more money than those who sold the same quality product at a higher rate. did i make any sense? LOL
• Philippines
9 Mar 07
Labor cost in China is very much cheaper that's why their goods are more affordable. Many Philippine Manufacturers has already transferred in China because of low Labor Cost and I heard they are even guaranteed of O labor strikes for 5 years by the China government.
@kramxel (27)
• United States
8 Mar 07
It's because the manufacturing location is so close. The shipping charges will be lowered dramatically.
• Philippines
8 Mar 07
It's not that they can produce very low priced products and the Philippines can't, because the Filipinos really can. Most of the raw materials are even from the Philippines, exported to other countries and imported back as a new product. It's because of the Philippine's trade policy with other countries wherein they have very low tariff or tax on the products coming in the country.
• United States
8 Mar 07
It's probably the combination of cost of labor and cost of shipping/taxes in and out of your country versus China. Labor is practically free there and the manufacturers take advantage of it. It's quite sad if you ask me.