The cheesecake manufacturer in southern China has been selling its products at bargain basement prices for nearly a year, the latest in a string of deals that has seen a glut of tablecloths from overseas become increasingly popular.
The factories in Guangdong province produce a variety of tableware items for various clients in the Chinese market, including high-end restaurants, luxury hotels and luxury malls, but the most common is a range of table cloths and china made in factories in the northern city of Hangzhou.
While the price for tablecloths is about 30% cheaper in Hangzhou than elsewhere in China, the high price for the most popular table cloth brands, such as China National Tablecloths, has prompted the local manufacturers to increase production to make more tableclothes at lower prices, which have been gaining popularity among customers in the local economy.
In a statement on its website, China National said it was investing in its local manufacturing to produce more table cloth and chinese brand.
“China National Table Cloth, one of the top producers of tablecloth and chinas in China has made a big investment in the manufacture of table-cloths and chinans in Hangsaouche, Hangzhou, and other regions of Hangzouche county, where they can be sold at cheaper prices,” it said.
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This is the second time that the company has increased production to meet rising demand in China.
Last year, it increased production from one factory to two.
Since then, it has also ramped up production of table cloths and cloths from two factories to six, according to Chinese media reports.
Despite the increased production, the company still has a significant backlog of orders, and the factory will only meet half of them in the next two years, according the company’s website.
It said the company would sell off its factory facilities to boost its production capacity, and that the cost of production would be reduced to “around 50% less than it was before”.
However, the move has been met with criticism from the local government in Hangzhou, where a number of high-profile scandals involving Chinese state media outlets have rocked the city, including a bribery scandal involving the city’s mayor, and an alleged assault on a journalist by a local lawmaker, a politician who is also the mayor of Hangzhong, the capital of Hangyings county.
China National has been accused of using state-owned enterprises to gain influence in the city and other Chinese cities, and has been criticized for not enforcing local laws and for selling tableclothing and chincher china at cheaper rates than elsewhere.
According to a report by China Daily, the local authorities were also pressuring the company to sell the factory to its rivals, such a state-run conglomerate.
After the company started making tableclothes and chins for its customers, the price of the goods fell, making them popular amongst local consumers, and they were also popular with other retailers, which then started to stock them on the local market.
Some of the Chinese brands were already popular in the US, but were now being offered for less than what the local consumers wanted.
A Chinese-language Chinese news site called the Guangzhou Daily reported on Monday that the table cloth brand China National had also sold for just 3,000 yuan ($46) in the Shenzhen market.
The article said the tablecloth company had also made some table cloth from overseas brands such as Japan and Italy.
The Chinese consumer is increasingly seeking cheap products, and many brands, including the ones that are imported, are selling cheaper products, said Zhang Zengqian, an analyst with market research firm IHS Global Insight.
However he said it could be hard to predict whether these lower prices are sustainable for the brands that are being imported, especially when other markets are seeing the same trend.
“We have seen a lot of manufacturers like China National who are trying to expand and they are making some changes, but I don’t think they are going to last,” he said.
“There is still demand for their products in China and the rest of the world.”
Some companies in the cheesecake industry said the trend was not just about making more expensive cheesecakes but also about increasing the quality of their products.
Liu Zhang, head of the cheesecake company in Guangzhou, told the local press in September that he wanted to make a cheesecake with a better consistency and better taste.
“When we first started, our cheesecake was just plain cheesecake, but after two or three years we wanted to create something with a richer taste and richer flavour, so we started improving the cheesebake to create a cheesecak with a much more refined taste,” he told local media.
He said he would be happy to sell