Technology

A Guide to Understand How Product Manufacturing Works in China

If this is your first-time sourcing products from China, the entire task can seem very daunting. You might even feel that everything is out of your reach. Where do you begin with? How do you find the right manufacturers? and the list of questions might just go on. Well, luckily we are here to help you.

If you are serious about getting your product manufactured in China keep on reading to learn

  • Basics of Chinese business culture
  • Advantages of manufacturing in China
  • Finding reliable manufacturers

Understanding Chinese business culture

China is a big country with ample of manpower and thus there are many benefits of manufacturing in China. However, their way of working is very different, especially from Western countries. Therefore, to succeed it is best to take some time and understand their cultural norms.

To begin, the first thing you need to do is develop a good Guanxiwang. So, what is it exactly? Guanxiwang is developing a network of connections or relationships within the Chinese Market. You need not rush in this process as it will take time. After all, you need to develop a bond with your manufacturer.

This relationship will eventually give you access to local bureaucrats, policymakers, decision-makers, etc. If you are wondering if bribing might help you make these relations, be very clear corruption is rarely accepted or appreciated within a strong Guanxiwang.

Also, don’t worry your sourcing agent will help you in developing good terms with manufacturers. A sourcing agent who has been in the market for years will easily get you in touch with established networks. Moreover, if you know anyone who has close associates in China, this is a good time to ask for their help.

Chinese people prefer working with someone whose recommended by someone they know rather than just working with bigger or better companies.

Why manufacture in China?

Manufacturing in China will give your business access to ever-increasing Chinese research, development, and technology. Every Chinese manufacturer is profoundly invested in research and development. Also, most manufacturing units have been upgraded with high-tech automation to ensure better quality and fast delivery. Along with getting access to advanced technology, other benefits of manufacturing in China include:

Low labor cost

Dealing with labor costs is always the main concern of any manufacturing unit. If you plan to manufacture your product locally, labor costs will prove to be very high. On the contrary, labor is pretty cheap in China. Besides, you will need not spend on training workers, as laborers working with Chinese manufacturers are always skilled and experienced.

Affordable manufacturing cost

Manufacturing in China is competitive for many reasons. Firstly, of course, the labor is cheap. Next, raw materials are less expensive as well. Lastly, when you place bulk orders with manufacturers, you can expect to get great discounts. In simple words, you get far more for your money.

Superior quality

Most people around the world think that – ‘Made in China’ products are of cheap quality. Well, this is completely wrong. Manufacturers maintain product quality as per the budget and specifications of their clients. Thorough pre-production inspections, in-process inspections, and pre-shipment inspections are carried out to ensure top-notch quality. So, if you pay for it, you will undoubtedly get it.

Prompt delivery

China has abundant manpower. This means, there is never any shortage of workers in manufacturing units. If you are in a hurry to introduce your product in the market, Chinese manufacturers are the only ones you can rely on for prompt delivery.

Flexibility

Unlike local manufacturing units in your country, when you source products from china, you can get access to work with multiple manufacturing units. Depending on your demand and order size, any experienced sourcing agent will introduce you to multiple manufacturers. You can flexibly work with multiple manufacturers at the same time.

Focus on other areas

When you outsource the task of product manufacturing, you can use your money, resources, and time for other work. This means you can focus better on marketing and sales, and thereby increase your revenues.

Finding an experienced and reliable manufacturer

If you are expecting to do long-term business and want to get all the benefits of manufacturing in China, it is crucial for you to find a reliable manufacturer. Now, there are countless units, and thus you need to shortlist a few that fits your requirement. To do so, you can either rely on recommendations, an online directory, physical searching, or a sourcing agent.

Compared to all the options, the best and most convenient one will be working with a sourcing agent. Sourcing agents are Chinese locals who know ins and outs of most manufacturing units. They can recommend manufacturers and even help in negotiating with them.

Also, sourcing agents can conduct product inspections or can hire third-party quality control inspectors to ensure high-quality of your products. This means, all you have to worry about is finding the right type of sourcing agent and the rest will be taken care of.

Then again, when your sourcing agent introduces you to a few Chinese manufacturers, it is your job to select the ideal one. For this, it is best if you go a little prepared.

It is recommended you ask the following questions to a manufacturer to see if they are a good fit:

  • What is your minimum order quantity?
  • What is the cost of the sample?
  • What are your production costs?
  • Are there any circumstances that will affect your price?
  • What is your manufacturing expertise?
  • How big is your manufacturing unit?
  • Have you worked on products similar to mine?
  • How will you ensure quality control?
  • How long will it take for you to deliver my product?
  • What are your payment terms?

You must ask the same questions to every manufacturer you meet. This will give you a clear idea of who is truly worth working with and save you from any monetary losses.

Well, now you know how product manufacturing in China works. So, without any delays, get in touch with a trustworthy and experienced sourcing agent, and ripe the benefits of manufacturing in China.

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