Competing in the modern business world can be difficult for startups, with larger corporations having more resources and larger budgets at their disposal. How can an entrepreneur create a product that competes in such an environment? Working with product development in China can help you develop your business ideas into marketable products, helping you gain the competitive edge you need to get ahead of the pack and succeed in your niche. Plus, working with companies in China can save you time and money when it comes to bringing your new product to market. Here are 5 reasons why product development in China is essential for startups today.
1) The costs are lower than you think
Yes, we know price is not as cheap as it used to be in China anymore. But after all, the cost of living is still lower in China, which means that your product development team will be able to live comfortably while working on your project. Thus wages are also lower in China, at least much lower than western countries, so you’ll be able to save money on your product development costs.
But unbeknownst to many outside China, the Chinese government offers a number of incentives for businesses to boost the competitiveness of Made-in-China in the country which still heavily relies on industry manufacturing, and those policies can help offset many of the costs of product development.
Not to even mention the number of resources available and vastly expansive supply chains in China that can help you with your product development, including factories, suppliers, and service providers. Product development in China can help you get your product to market faster, since the manufacturing process is typically quicker than it is in other countries.
2) Scale up quickly to meet market demand
For start ups, if your business can develop a product that meets the needs of this market, you’ll be well on your way to success. That requires a high level of flexibility of production and inventory. That is what product development in China is so great at, which can help you scale up quickly to meet market demand. Whether it is factory automation or electronics manufacturing, Chinese manufacturers have all the necessary infrastructure in place for quick turnarounds. With industrial zones spread across the country, there are usually plenty of options available when looking for suppliers or partners.
The labor force is also quite large and diverse, making it easy to find skilled workers who specialize in particular areas like design or R&D, and last-minute changes can always been promptly addressed due to the affordable and resourceful nature of its labor force. For start-ups, flexibility is a great leverage as it’s hard to say for sure what you want for your first product on the first try.
3) Develop your prototypes faster
China also has abundant resources that can secure a prototype to be made quickly and efficiently. Raw materials, like electronics components, are available on the cheap across the country. Engineering services are available cheaply as well, with labor rates much lower than what would be found in Western countries. These factors combine to make prototype development easier, faster, and cheaper than it might otherwise be outside of China. With the right partner like C2W, prototyping will be as easy like a breeze.
This is extra critical for start-ups. Not only does this help startups reduce their costs, but it also helps them pivot if their initial idea doesn’t work out. In other words, prototyping in China means less time spent figuring out how to get things done – or waiting for someone else to do it – so more time getting ideas off the ground.
4) Faster response and fewer shipping delays
Time zone differences can make communication difficult, and shipping delays can impact your business in a big way. By working with a product development team in China, you can avoid these issues and keep your business running smoothly.
Ideally, you want your product development team to be within just a few hours of driving from where you product is made. If god forbid, should any accident happen, someone can be on the site in time to save the fire. Given the highly mature system of supply chains of China manufacturing as well as widespread networks and diverse variety of public transportations there, most product development team can respond as quickly as possible. Not to even mention the world-class internet system there, IM tools like Skype and WeChat(equivalent to WhatsApp in the west), make it easy to keep up-to-date with what’s happening and ensure tasks are getting done without significant delays.
China prides itself on being the Nation of Infrastructure. Out of 10 businest ports in the world, China takes 7 of them, including two among the top three. Finding a supplier who can ship directly from China will help you reduce shipping delays in transit, which can damage your products or lose you money from potential sales opportunities. It’s a huge benefit that working with an international team offers!
5) The quality of products is consistent
Maybe it’s about time to update your views on made-in-China products.
In recent years, product development in China has improved drastically. The quality of products is now on par with developed countries, and in some cases, even better. This is due to the fact that China’s push for technology innovations and Chinese manufacturers thus have access to the latest technology and equipment. Additionally, they are willing to invest heavily in research and development. As a result, startups that partner with Chinese manufacturers can be confident that they will receive high-quality products.
Meanwhile, don’t forget China is a country with an unimaginable size of population, which means young minds fresh out of college are countless. Unlike the western countries where younger generations are less inclined to pursue a path in STEM, subjects related to engineering and machinery are still highly respected there. Imagine how big of a talent pool you have access to and how they can be beneficial to your product development.
We know you still have reservation and find China still a deep water for you to navigate. But with
the right team, you’ll be surprised by one perk after another! C2W has all it takes to walk you through this journey. With our 17 years of dedication to everything related to manufacturing in China, we are fully committed to building a bridge between China’s advantages and your business success. Reach out to us if you’d like to know more!
