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SW-User
Cheap labour costs. Also their factory safety etc is much lower than in most other countries. I watched a video of a small guitar making plant on YouTube very little protective gear (glasses, dust masks etc) and no guards on the equipment to protect workers. Therefore machine and reusables costs are lower.
Finally economy of scale. Once you are undercutting other labour markets you can get orders from all over and therefore produce a lot of it so your unit price goes lower, undercutting another market, you get more orders,.... Etc etc
Finally economy of scale. Once you are undercutting other labour markets you can get orders from all over and therefore produce a lot of it so your unit price goes lower, undercutting another market, you get more orders,.... Etc etc