It always pays to check the labels on the items you purchase to learn more about what you’ve bought. For many, these abbreviations can look like gibberish and are often ignored, but there are specific labels you need to be aware of when shopping. And one such label that you’ll commonly see on a variety of products says “Made in PRC.” Is this something good or something you need to skip buying? Learn all about what made in PRC means so you can make a more informed decision on your next shopping trip.
What Does “Made in PRC” Mean?
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Made in PRC quite literally means Made in the People’s Republic of China. You may be more familiar with the label “Made in China,” and “Made in PRC” is just another variation of Made in China. You may also see labels “Made in P.R.O.C.” where P.R.O.C. stands for the People’s Republic of China.
These labels mean the same thing and have no difference between them. The primary reason that some products are not labeled simply as “Made in China” is because of the misconception that you are purchasing an item with a lower quality compared to goods labeled with the PRC tag, which many customers perceive to be better.
It should also be noted that the US Customs and Border Protection does not accept the abbreviation PRC. What’s legally allowed are labels that would indicate the entire name of the country of origin, like Made in China or P.R. China.
Advantages of the “Made in PRC” Label
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For those unaware that Made in China and Made in PRC are the same, the latter is preferred. So, switching the labels and transitioning the brands to the latter significantly affects consumer buying.
Here are some of the more specific benefits of using this tag, which many think comes from a different country and not from China.
#1. Better Product Sales
There were times when all products labeled “Made in China” were considered inferior. These items were supposed to be of low quality, unreliable, and even unsafe. This incorrect bias led to many consumers not purchasing goods made in China because they believed it to be a waste of money.
And this incorrect conclusion is not just limited to small brands; even well-known brands have suffered the consequence of this misconception.
As a way to remedy this, Chinese suppliers started masking their labels. This doesn’t mean they were deceiving their customers or misinforming them, simply that they were using a different approach. And once they adopted the “Made in PRC” tag, sales improved because many were unaware of what country PRC was. But since they assume it wasn’t China, they buy the product without bias.
The change may be minimal, but it boosts the sales of many exported items because most will buy another product so long as it is not made in China without knowing what PRC means.
#2. Allows Customers to Experience New Products
Changing the label also allowed people to try China’s products as first-time consumers fairly without basing their opinions on other people’s feedback. It gives China’s goods a fair chance to compete with other products and corrects the misconception that all Made in China products are of poor quality. It helps erase the negative bias associated with products manufactured in China.
People need to learn that global brands like Nike, Converse, Dell, and even Apple have their products directly manufactured in China or have integral parts of their products manufactured in China.
#3. Corrects a Wrong Misconception
This label allows customers to try out different products and see if they like what they bought and eventually become regular buyers.
Although people may have yet to learn that their products are made in China, being able to correct a misconception through experience is a good move toward getting a loyal customer base. Even if the consumers are loyal to PRC and not to China.
Why Are the Majority of Products Made in the PRC?
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Based on United Nations Statistics Division data, 28.7% of the world’s global manufacturing happens in China. This is an interesting statistic, given the fact that products made in China are considered to be of low quality. So, why do so many countries still have their industrial processes based in China?
Take a look at some common reasons why many global brands transfer their manufacturing to China or get suppliers from China for their products.
#1. Impressive Logistics
Be it through airports, railways, or sea cargo, transporting goods from China is easily accessible. China’s Belt and Road policy system or One Belt One Road also plays a major role in facilitating this as it has helped greatly improve China’s overall connection to the world.
#2. Cheaper Labor
Labor competition in China is steep and fierce, so you can expect labor costs to be considerably cheaper. The country has also become a hub for other foreign nationals to go to for factory and industrial work, so they also have a strong workforce.
#3. Economic Stability
Many foreign investors are more confident investing in China compared to other countries because of its political and economic stability. This is a feat that the government has been able to achieve for the past 20 years consistently.
#4. Streamlined Production Knowledge and Skills
China is a forerunner when it comes to producing cheap but quality goods, thanks to its innovative technologies and approaches to producing and delivering goods. Aside from Japan, you can expect China to always be a leader in creating new, convenient processes.
#5. Quality Items
Chinese manufacturers, despite their reputation for health hazards and poor-quality products, are the go-to country for global brands. This is because they have proven to have some of the highest-quality merchandise in the world.