Overseas manufacturing in LMICs

The hearing aids suppliers who were interviewed generally expressed interest in overseas manufacturing in other regions, such as Asia and Latin America. The key benefits regarding overseas manufacturing in LMICs include better local sales in the region and avoiding trade complications stemming from global dynamics. Cost savings were not cited as a primary reason as all suppliers noted that China's manufacturing capabilities remain more advanced. If manufacturing in LMICs is pursued, suppliers will consider factors such as local policy stability, production efficiency and supply chain robustness, among other factors.

Instead of building a plant from scratch, many hearing aids suppliers prefer to partner with a reliable local partner to co-build local manufacturing capabilities in LMICs. For example, Austar has started a partnership with a supplier in India, focused on know-how transfer and technological collaborations, to build up their local production and R&D capabilities. According to hearing aid suppliers, this approach helps them better penetrate LMIC markets, increase local sales and enhance brand recognition locally.

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