If you are the owner of a small business and desire to find goods that you can resell for a lucrative profit, white labeling may be a viable option for you. However, it may not be ideal for everyone. It is critical to consider both the positive and negative aspects of white-label manufacturing, including the choice between local manufacturers or Chinese suppliers. Each has its own individual benefits and drawbacks, so carefully analyze the pros and cons before coming to a final decision.
In this blog post, we will explore three key factors to consider when deciding whether to choose a local manufacturer or a Chinese supplier for your white-label production. Let’s get started!
What Is White Labeling?
White labeling, also widely known as private labeling, is a process in which the original manufacturers create generic products and then market them to different brands for personalization.
These products will typically undergo alterations prior to being offered to the ultimate consumers, including being labeled with a company name, logo, and/or trademark, modified colors, and altered packaging.
By taking advantage of white labeling, small or medium-sized enterprises can expand their product lines without investing too much time or funds. Typically, white-label products are available for bulk ordering with customizations made on demand.
5 Factors to Consider When Choosing Between a Local Manufacturer and a Chinese Manufacturer
Before working with a white-label manufacturing partner, there are a number of variables that need to be taken into account. To assist you in this decision-making process between choosing a local manufacturer or a Chinese supplier, here are five important points to bear in mind.
1. Consider the Minimum Order Quantity
When it comes to the process of white labeling, one of the most pivotal considerations is determining the minimum order quantity, especially when partnering with a manufacturing business located in China.
Generally speaking, white-label suppliers from China are known for having low minimum order quantities, allowing businesses to purchase small amounts of stock at a time. This makes it easier for smaller businesses to participate in white labeling without having to order huge amounts of products at once. However, be sure to double-check with your supplier to understand their minimum order needs so that you can order the right amount of product and avoid any potential miscommunication.
Additionally, if you have satisfactory products in mind, consider if you will be able to take advantage of quantity discounts by ordering higher volumes of products.
2. Consider the Product Quality
Many providers within the white-labeling sector make familiar goods. Thus, when selecting a manufacturer, it is imperative to make sure they have strict quality control standards to guarantee that the goods they make adhere to the best benchmarks.
It can be simpler to inspect and make modifications to the product when you partner with a local supplier. However, with a Chinese supplier, it’s critical to request samples to validate quality prior to placing a large order.
Make sure to ask questions about their quality control processes and look for evidence of certification or accreditation. Additionally, you may want to conduct research into their past successes or ask for customer testimonials to get a better understanding of how they can help you produce quality white-label products.
3. Consider the Lead Time
When you are looking to purchase white-label products from a manufacturer in China, you have to consider the lead time. The amount of time it takes for a manufacturer to fulfill an order can directly impact your profitability.
If you’re considering local manufacturers for your white-label products, make sure to compare the lead times between them and Chinese suppliers so you can find the one that best suits your needs.
If a Chinese supplier is not able to deliver within your desired timeframe, it could lead to significant delays in shipping. That’s why asking your potential supplier about their lead times and if they can guarantee them is important. Also, when you come across peak seasons, you need to order products beforehand to avoid any descriptions. To prevent running out of stock, it would be wise to purchase white-label items locally if the Chinese supplier is unable to fulfill the deadline.
4. Consider the Price
When choosing a white-labeling partner, the price is a crucial component to consider. Think about any additional costs associated with your project, like shipping and logistics fees, that may arise from buying items in China, and compare them to the local manufacturing prices. In deciding between domestic and overseas manufacturing, it is important to select the most advantageous option.
Generally, domestic manufacturers tend to charge more; however, their advantage is exceptional customer service and efficient communication. Furthermore, orders can be fulfilled much faster if you purchase locally, making this a desirable option in urgent cases.
In comparison to local producers, Chinese producers tend to offer more affordable rates thanks to their large-scale production capabilities and inexpensive labor costs. Yet, before partnering with Chinese manufacturers, it is essential to consider the exchange rate and tariff levels, as they could potentially change the total production expense.
5. Consider the Shipping
Finally, before engaging with a Chinese white-label supplier, it is imperative to consider whether the item is capable of being easily transported.
Think about your product and your requirements. Before finalizing a white-label product, it is wise to consider its weight and dimensions, which could make a significant difference in the cost of shipping.
Keep in mind that lightweight and small products are easier to ship, less susceptible to transit damage, and cost-effective. More importantly, white-label products that are heavy and difficult to ship will incur greater costs compared to those which are light and easy to pack.
Ultimately, you want to maximize the total costs of the whole order. You don’t want to purchase products that come with high shipping costs if you have the option of purchasing a similar item elsewhere with cheaper shipping. To prevent you from spending too much money on the same item, it’s important to remember the product dimensions before making a sourcing decision.
Work with the Right White Label Manufacturer in China
White-label Manufacturing in China can be appealing to many businesses, but with so many different factories and manufacturers to choose from, finding the most appropriate one can be an arduous task.
If you are considering working with a white-label manufacturer in China, China 2 West is the perfect partner to collaborate with. We are renowned as a one-stop-shop manufacturing consultancy that ranges from product sourcing and manufacturing to QC inspection and distribution in the Greater Bay Area in Southern China. For more information on how we can help you with your project, don’t hesitate to contact us today.
