Lohn is a widely spread contractual form in various industrial fields of international cooperation relations, especially in the industry of clothing, footwear, leather, furniture, software and hardware, pharmaceutical, metal working, metallurgical, machine tools, automotive, automation,
machine building industry, electronics and appliance industry, food and beverage industry, petrochemical industry.
At present, the annual production achieved in lohn globally exceeds 10,000 B $, representing 10% of GDP (Gross Domestic Product). Source: The Organisation for Economic Cooperation and Development (OECD)
The lohn system consists of an economic business, carried out on a contractual basis, between two companies of different countries. One company performs, for a retribution in cash or in kind, a custom-made product according to the design, drawings, usually with raw materials and materials of the other company, which keep the right to trade that product under its own trademark.
The low production cost in emerging economies makes these markets very attractive for the production of consumer goods.
The main benefit of producing goods in these markets is the exceedingly low production prices which maximize profits.
The lohn production economy is a commercial activity that has been constantly developing since the '60 and will certainly withstand the test of time as there will always be a difference in the labor cost of developing countries compared to the developed ones.
The value is what keeps us together.