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 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.
Worldwide production of consumer goods in lohn is characterized today by the lack of visibility of small and medium players from both manufacturers and buyers. This lack of visibility is due to the limited funds available for its own promotion. The market is thus at the fingertips of the big players who, due to their financial strength, make the pricing policy for the production of goods in emerging economies There is currently a lack of global trading platform in which small and medium-sized players in all industries, accounting for 60% of the economy globally, to interact directly and to capitalize on its competitive advantages.
lohncontract.com will be the missing link in the coming years between buyers willing to pay better and producers interested in optimizing their financial return. The relationship between the parties will be governed in the blockchain by the lohncontrol Smart Contract which will ensure the management of industrial processes, operational risk and settlement solutions. The trading platform will facilitate the access of developing country producers to niche brands in developed countries, and the benefit will be on both sides. Lohn, as an economic activity, will reinvent and adapt to the values of the 21st century society. The distribution of profits will be much more equitable, which will allow for a reduction in the economic gap between developed and developing countries.
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