In other industries the differences are sometimes even greater. This is shown by the current analysis “China Speed” by management consultancy Roland Berger. Particularly explosive for European companies: Even if Chinese manufacturers relocate parts of their value chain – especially research and development – to Europe, more than 50 percent, and in individual cases even up to 80 percent, of their efficiency remains, Roland Berger experts find. And more and more Chinese competitors are actively pushing into Western home markets.

Cost advantage not only because of low wages

Contrary to popular belief, China’s cost advantage is only partially due to lower wages, according to consultants. Your analysis shows: Around 60 percent of the cost advantage arises from design and system decisions, such as consistent standardization, reduced variety of variants and “fit for purpose” engineering – i.e. focus on market-relevant performance. Other drivers are competitive supplier structures and operational efficiency, not primarily personnel costs.

“China Speed ​​is not a cultural phenomenon”

“China Speed ​​is not a cultural phenomenon, but the result of clear decisions regarding product design, portfolio complexity and the supplier base. And that is exactly why part of it can also be implemented in Europe,” says Oliver Knapp, partner at Roland Berger.

The management consultancy identifies speed in China as the result of a consistently integrated development approach. Chinese manufacturers shorten development times primarily through significantly shorter strategy and decision-making phases, a high proportion of virtual tests of up to 80 percent, parallel development of software and hardware, and early, systematic integration of suppliers.

Testing is carried out primarily on the computer, not on the street

A specific case study from the study (ENG/PDF) from the automotive industry shows: A Chinese manufacturer of passenger vehicles was able to reduce its development time by 14 months compared to the global reference value. This was achieved primarily through organizational and procedural adjustments, without compromising marketability or product maturity.

“China Speed” in Germany?

The analysis shows that “China Speed” is also possible in Europe – albeit in a scaled-down version. According to the consultants, European companies still have important strengths: deep customer knowledge, regulatory expertise, strong brands and a high quality reputation. “But they lose their effectiveness if cost gaps and development times are not significantly reduced or shortened. However, European companies can specifically adopt elements of the Chinese production method and adapt them to their own systems,” says Roland Berger.