China is a global leader in the manufacturing niche. New entrepreneurs wanting to sell private label products will need to browse around for reliable manufacturers in China to source their items.
International businesses have been sourcing products from China because it reduces the labour and manufacturing cost. With the rise in domestic rates, it is convenient and affordable for product sourcing from China. Various American companies are outsourcing the manufacturing of products to China. They get their goods assembled, or completely built overseas as the labour and manufacturing cost is low.
China is considered the largest manufacturing nation in the world. One-fifth of the global source manufacturing is taken over by China. Planning to start a business is not easy because it involves a great number of investment and risks. Thus, business owners consider cutting cost by manufacturing products in China.
Truth behind manufacturing outsourcing to China
- Labour cost
Labour is the biggest cost involved in a manufacturing company. China provides cheap labour costs which save money for international companies. Staffing gets flexible when it’s outsourced because you can negotiate with the outsourcing company.
- High-quality products
Factories in China provide reduced rates on bulk orders, and they provide high-quality products. This means you get better products on the money spent, which would not have been the case of home production.
- Fast delivery
A huge population in China increases the chances of manpower. The Chinese regulation states that manpower in factories can be increased according to the manufacturing requirement. This means if you give bulk orders, the factory will still deliver them fast because they have no reservation in hiring more people.
- Rich in resources
One of the main reasons for manufacturing sourcing China is that the country is rich in parts and raw materials. With a diverse number of raw materials and parts, they can design anything based on specification. Thus, if they don’t have the design that you’ve provided, they can still make it with the provided details.
- Flexibility
Contract manufacturers can produce goods for two or more companies within the same warehouse and provide them on the specified delivery date. They are flexible to respond to increased production requirements.
How to find an authentic supplier in China?
1. Trade shows
You can attend trade shows in your country and internationally to meet legitimate suppliers. Huge trade shows help all countries to increases the potential market for business owners and to increase the path for international business.
In China, the Canton Fair is the largest import and export fair that is held twice a year. It covers almost every industry that produces physical products. The fair is commenced in three stages -
Phase 1 is for electronics, machinery, chemical products, and building materials.
Phase 2 is gifts, consumer goods, and home décor.
Phase 3 is for Textiles, shoes, office supplies, health products, medical devices, and recreational products.
2. Wholesale markets
The Yiwu Market has around 40,000 shops which are open all year. If you’re looking for manufacturing sourcing products like shoes, bags, accessories, textiles, and watches at the lowest price, you can try Yiwu market. However, this market focuses majorly on buyers from India, the Middle East, and Africa. Thus, their products have no quality standards and regulations, and their price can go as low as you want. If you’re looking for products like cosmetics, machine parts, or medical devices, you should search other wholesale markets.
3. Online search
Using an online supplier directory is one of the safest ways of searching for a reliable supplier. The truth is there is no law governing online marketing in China. This means, the websites in China can promote inaccurate information. Thus, if the search engine is generating a list of suppliers, don’t just decide by looking at the product samples, varieties, and price list.
Do a thorough check by searching through various search engines about the company or by stalking them on social media. Reading many reviews will give a proper idea of the supplier. Sometimes using relevant keywords like “electronic products from Shenzhen” narrows down your search list for better results.
4. Referrals and industry network
If you are new in the business, but have good connection in the industry, your connections can help in getting Chinese suppliers. Sometimes you get the best leads from referrals and there is no inspection required because of the old network. Use social media groups and ask for assistance through groups and communities.
Why to hire a China manufacturing agent?
The business culture in China is exclusive. Navigating through their complicated business landscape can be hard for foreigners who don’t speak their language. The most essential aspect is choosing a credible China manufacturing agent, who can help you connect to an ideal manufacturer in China.
1. Understand manufacturing supply chain
As the China manufacturing agent is familiar with the manufacturing supply chain, you gain a comprehensive overview of different suppliers suitable for your project. The China manufacturing agent is familiar with the supplier’s strength and factory basics. Many Chinese OEM manufacturers are not visible on the internet or are not active, so it’s difficult to find them out.
With years of experience in this field and being a reliable source in China, the agency can ensure that they will find the right supplier. Their knowledge about the country and skills in handling outsourcing business will help international business to leave the work with them at ease.
2. Saves time dealing with details
On the internet, there are numerous manufacturers. DIY looking for a reliable Chinese supplier means spending time with several factories ordering samples, screening, and negotiating prices. After you find the perfect manufacturer there are MOQs, inspections, alterations, freight, forwarding, customs, and final delivery to consider. Choosing the correct manufacturer is a major undertaking. A little slip and your business, as well as your success, will be at stake.
3. Connects with reliable manufacturers
The China manufacturing agents will choose several manufacturers before finalizing one. Most times the Chinese supplier is not proficient in English, but the China manufacturing agents will act as a translator. The agent has gained awareness about your project needs and can share the information and proposals with the manufacturer. This helps to avoid any misunderstanding between you and the manufacturer right from the start.
One China manufacturing agent handles various businesses at one time. Therefore, they can source different items from various suppliers in one go. Right from arranging raw materials till packaging and logistics will be handled by them for all products requested. So, if you’re a multi-business, you can still do business with one China manufacturing agent for all your products.
4. Verifies manufacturer’s credentials
Before signing a contract or negotiating ask for the manufacturer’s credentials. Remember, all their licenses and credentials will be in Mandarin. You will need to verify their authenticity because there are chances that you will be handed fake documents. Translators are expensive, but as the China manufacturing agent is on your side, they are aware of the original certificates and requirements that the manufacturer has to legally fulfill. Thus, the chance of getting scammed is drastically reduced.
5. Smart negotiations
Negotiations are crucial and the China manufacturing agent knows how to tap a great deal without compromising on quality. Several feel that bargaining with the manufacturer for lower prices can dent the product quality. It is possible because cost cuts are balanced out with low-quality production. China Manufacturing agent handles negotiation with China suppliers properly because they know the language and local laws. They know how to get involved parties to stay on the same page for signing the contract.
6. Flexibility in orders
There is no minimum order when you work with a China manufacturing agent. They will take as many orders as you provide, and they will get the best products by meeting the standard of quality. Once an order is taken, it is the responsibility of the China manufacturing agent to ensure that the product is delivered within the budget decided and the quality parameter is met.
7. Best possible prices
The main mission of hiring a China manufacturing agent is to get the best supplier at a low cost. Once you have informed the agency about your orders, specifications, and requirements, it is the task of the China manufacturing agent to find the trusted supplier. Most agencies will get quotations from various reliable suppliers. They will bargain on your behalf to make sure the best quality is delivered at the lowest price.
8. Quality check
The sourcing business will ensure that the product meets the quality standard. This is the best reason for hiring a China manufacturing agent. For example, without middlemen, the products will be delivered to your warehouse without a quality check. Once received, if you find any defect or any part is missing the whole shipment will be sent back which is not only a hassle, but also the business stops for a few weeks or months due to shortage of product. However, hiring a China manufacturing agent from the same country eliminates this hassle, as they will check the quality properly and send internationally after meeting standards.
9. Smooth follow-up
The agent ensures that the order is conducted and completed in full agreement, has all the necessary taxes & tariffs paid then shipped to the specified destination. There is a reduced risk of confiscation at the customs.
Follow-up is necessary with the suppliers to ensure there is no delay in manufacturing. This is not possible whenever the dealing is done with an international business. However, China manufacturing agents ensure that they keep a track of the manufacturing process, so the product is delivered on time.
Why you need a reliable China manufacturing agent in China?
Try to find a China manufacturing agent that deals in all services like searching for factories or suppliers, negotiating the lowest price, follow up on productions, and delivering products after meeting the quality standard.
They should have good experience with product sourcing and quality inspections services. Your manufacturing sourcing service must have QC managers and Inspectors to ensure that all products are manufactured with the best quality standards and are delivered on time. They must keep everything transparent with you, and the prices must be competitive.
Responsibilities of China manufacturing agents:
- These agencies understand your requirement by gathering information about the product and quality needs.
- They will have networks with manufacturers that provide high-quality products for competitive costs. They will get numerous quotes from multiple manufacturers and finalize the best deal in terms of quality and pricing.
- After approving the deal, your sourcing provider will send few samples to finalize the deal and to get your assurance. Once you are satisfied with the quality, the bulk order is placed.
- Before sending the bulk order, they will first send a trial order. This trial order will be a small number of products sent to you to gain confidence in terms of manufacturing and quality. After your approval, the bulk order is produced and sent.
- They provide onsite services for product declaration, customs clearance, documentation, and certification.
When to hire a China manufacturing agent in China?
If you encounter the following situations, then you will consider hiring a China manufacturing agent.
1. You are inexperienced in the import business
Importing products and goods from a foreign destination like China is complicated. It is overwhelming to embark on strange territory. For business successes, you need to find the right manufacturer, control product quality, test and handle shipping problems.
No or insufficient experience in a single one of these factors can increase the challenges and risks. To ease the burden and achieve these requirements hire a China manufacturing agent. He will handle the processes, so you can continue handling your side of the business.
2. Handling several product categories
If you have several product categories to manufacture, then finding and handling multiple suppliers can be a task. It is true especially when you are unaware of the sourcing market in China. You will need to have contacts with multiple manufacturers to fulfilling your needs, which can be too tedious for a new venture owner.
A China manufacturing agent enables to bypass the stress of finding and vetting several manufacturers. They consolidate your needs by connecting with accurate manufacturers capable to deliver high quality at great prices.
3. If the product type is specialized
Some materials and products are difficult to acquire. It can be proprietary building material or innovative customer products or restrictive drugs. Some special manufacturers cater to these specialized product categories because the needed raw materials or ingredients are available to a few selected factories.
The China manufacturing agent is familiar with where to find the ingredients and raw materials for your project. They capably connect you directly to the source. Share your special product specifications in detail with the manufacturer and strike a deal.
Conclusion
To ensure your job is done fast and in the cheapest possible way, you should look for an experienced and knowledgeable supplier. Search the database properly and come up with a supplier that meets your requirements. If needed seek the help of a reliable China manufacturing agent from the same country. They have a list of suppliers who can provide the best quality at the best price.
Different China manufacturing agents specialize in diverse products. Therefore, check if the potential China manufacturing agent is experienced in sourcing products you are planning to outsource. Ask for previous order records or ask for relevant buyer’s reference. A good China manufacturing agent has lots of satisfied clients and will keenly share their information. You can contact the referrals to get an idea of their experience in working with the potential China manufacturing agent.
Reputable China manufacturing agents never demand rebates and refunds on products because it damages their reputations. Building credibility takes time, so use rational judgment to hire a China manufacturing agent. If your gut feeling strongly appraises the China manufacturing agent’s credibility, hire them.
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