The focus from only making products will change going forward if it has not already, and we will see a more holistic approach to product development and design. China has all the parts of the puzzle to support this change and it is already happening. Keywords like Cloud, AI, control, connectivity, and sustainable development are all key parameters that play an important role in why China will continue to be a center for product development, design, and manufacturing.
The clusters of high-tech companies and the focus on development in China make new technologies more approachable and with the well-established supply chain create opportunities for innovative development, which in the end can be transferred to the satellite factories/hubs globally.
In addition to this, we should not forget the region’s market potential is huge. China itself is still one of the biggest markets so that alone will drive innovative product development and a better and cheaper supply chain.
From my perspective, the product development and product sourcing in Asia and China will not particularly change short- or mid-term. We cannot predict the long term, but it is highly unlikely that so well-established an environment moves to other regions entirely. We will see a broader value proposition from manufacturers, brands, and solution providers from being a region-based partner to being a more global partner with local satellite factories and hubs.