lohncontrol.com — another business model

by Catalin Iordache, blockchain concept manager at Lohncontrol

After World War II, human society entered a new stage of development and the appetite for consumption led to the emergence of a new industrial revolution. The profit maximization chase pushed consumer goods manufacturers to look for cheaper production options.

Thus, in the 60s, the outsourcing of a part of production in emerging countries that had the advantage of both cheap raw materials and low labour costs seemed the most convenient way for most big producers.

Industries such as textiles, footwear, electronics and home appliances, machine building, wood industry through furniture production and many others have seen the huge potential of lohn industrial production. World-renowned brand owners have become engaging buyers and have provided expertise and markets while emerging country manufacturers have integrated the production of goods on demand and absorbed a huge and cheap labour force in their home countries.

All parties involved were winning. The brand owners had found a way to grow their profits steadily and the manufacturers had the opportunity to gain access to the rich markets and to develop their national economy. However, the advantages came with disadvantages and imbalances. The strong ones became even stronger and those who depended on them had to accept their increasingly restrictive conditions and especially the labour cost policy.

Also, read full article: https://www.linkedin.com/pulse/lohncontrolcom-another-business-model-catalin-iordache/