The global technology industry is growing at an exponential rate, and there is a new player on the field. Located in China, this city is quickly becoming a hub for technology innovation and manufacturing.
Here are some reasons why this city has the potential to become one of the new tech capitals of the world and you can find many sourcing companies in Shenzhen.
- Lots of innovations are done in Shenzhen: Firstly, Shenzhen has a unique ecosystem that fosters innovation. Unlike other tech hubs that rely on established players and institutions, the tech scene of Shenzhen is relatively new, and its growth has been organic.
The innovation culture of the city has been shaped by its history as a manufacturing centre. In the early days of opening up of China, Shenzhen was designated as a Special Economic Zone (SEZ), which allowed it to experiment with new policies that encouraged entrepreneurship and innovation.
Today, Shenzhen is home to over 20,000 high-tech companies, including Huawei, Tencent, and DJI hence it will be very easy to locate many sourcing companies in Shenzhen.
- Capability to create prototype and manufacture: Secondly, Shenzhen is known for its rapid prototyping and manufacturing capabilities. The manufacturing industry of this city is one of the most advanced in the world, and its factories are capable of producing high-quality products at a low cost.
The proximity of Shenzhen to Hong Kong also gives it easy access to international markets. Many companies, especially startups, choose to manufacture in Shenzhen because of its fast turnaround times and low production costs.
- Availability of vast network of suppliers and manufacturers: Thirdly, Shenzhen has a vast network of suppliers and manufacturers. The city is home to some of the largest electronics markets in the world, including the Huaqiangbei Electronics Market.
Here, suppliers and manufacturers can find everything from basic components to finished products. This ecosystem of suppliers and manufacturers makes it easy for companies to source parts and assemble products quickly.
- Supportive Government in Shenzhen: Fourthly, Shenzhen has a supportive government. The local government has invested heavily in the infrastructure of the city, including its transportation system and technology parks.
The government also offers tax incentives and subsidies to attract and retain high-tech companies. Additionally, the city has a well-developed intellectual property system that protects the rights of inventors and entrepreneurs, and as a result, one can find several sourcing companies in Shenzhen.
- An attractive destination for talent: Lastly, Shenzhen is an attractive destination for talent. The rapid growth of this city has created a demand for skilled workers, and it has responded by investing in education and training programs.
Many of top universities of China, including Tsinghua and Peking University, have opened campuses in Shenzhen. Additionally, the city has a large population of tech-savvy millennials who are attracted to the dynamic tech scene of this city and fast-paced lifestyle.
Shenzhen has all the ingredients to become one of the new tech capitals of the world. Its unique innovation ecosystem, manufacturing capabilities, supplier networks, supportive government, and talented workforce make it an attractive destination for tech companies.
As China continues to open up to the world, Shenzhen is poised to become a global hub for innovation and technology and you will be able to find many sourcing companies in Shenzhen.
Overall, Shenzhen’s growth and success in the technology industry can be attributed to the following:
- Unique combination of innovation
- Supplier networks
- Government support
- Talented workforce.
As the city continues to evolve and attract more companies, it has the potential to become one of the leading tech capitals in the world.