Why should you look to China to manufacture your product? Goods that are manufactured in the US generally cost 5% more than in China. So, if you’re looking to make a profit with goods of the same standard, then you should outsource to China.
China is also 10-20% cheaper than most European countries. If you’re operating on a tight budget, this is the right move. How do you go about finding a manufacturer in China? By process of elimination.
Finding a manufacturer
Ideally, you want a manufacturer that is familiar with your kind of product. You can find such a company easily enough. But do they meet the standards you require? You will obviously need to do your homework with studious research. First, know how China business model works. Go to WPIC, the leading marketing and technologies provider with 15 years of on-the-ground experience, and get the lowdown.
Doing business in China is different from the US and most European countries. The country has laws and practices alien to the US but get to know what they are and work within the parameters. You will find that doing business in China, although different, will give you a satisfying result if you choose the right manufacturer.
Get opinions from others
There are many companies from outside China that are doing business there. Get to know who they are (there are searches you can follow) and try to ascertain if they’ve had problems and how they have been solved. This may be difficult, but stress you’re not trying to find out trade secrets pertaining to that company – just their experience.
Go online and search for ratings and reviews. See what other companies are saying about their experience with manufacturers in China and whether they still think that it was the right decision to move the business there.
Many problems arise with the logistics chain and you need to find out if China is adept at this procedure. You will come to know that China has a history of shipping internationally. It has been doing that for decades, so it is very experienced with issues such as safety procedures, labeling and packaging regulations.
Not only will you get a quality product, but you will also have it delivered to the US in pristine condition, with all regulations having been met. China’s manufacturers have a legacy of excellence to uphold. Competition there is fierce, and they need to keep your business.
Questions to ask
How much and when? These are the first questions you need answers to. You need a request for quotation (RFQ) and supply them with the info they will need – the size of your order, samples required, breakdown of costs and distribution. You must insist on a sample upfront to check the quality and have an understanding that getting your business depends on this.
Make sure this is in writing and is clear. You may well reject the sample and take your business elsewhere. Will you be liable for costs incurred thus far? Not if it’s in your RFQ. If not, you could be liable. Get to know everything about business in China. Do research on culture. Obviously, more so that anywhere else, that permeates into everything.
Big barrier to cross
When trying to find the right manufacturer, there are barriers you must cross. The most important one is the language barrier. English is not commonly spoken in China and you could become very frustrated in your dealings. They will use a professional interpreter in their negotiations.
Another suggestion is to hire or have access to someone who speaks Chinese. It may be best to get this person on board and let this person handle proceedings.