All too many entrepreneurs and small businesses have gone out of business because of complications with product manufacturing. Many great ideas have been abandoned because of inexperience and lack of good information on how to develop and produce a custom product. When good ideas or viable products aren’t pursued, it could mean the loss of millions of dollars in potential revenue. Your business can’t afford to make this mistake, and it doesn’t have to. There are many opportunities for outsourcing custom manufacturing needs to China. With these tips, you can find the right partner for your manufacturing requirements.
The Benefits of Outsourcing Custom Manufacturing to China
Some business owners may not be considering outsourcing to China because of the horror stories they have heard. While it is true that there are some scams and poor-quality manufacturers that will try to take your money, China is an undisputedly profitable global trading partner for exporting manufactured goods. In 2018, over $500 billion in goods was exported to the United States from China.
The manufacturing capabilities and opportunities that exist in China can open doors for your business, but you have to know how to locate a provider you can trust. Cost and quality are two key benefits of outsourcing your product manufacturing, but only when working with the right supplier.
The Strategy for Finding a Custom Manufacturing Provider in China
Like any other business decision, you should move carefully and deliberately when looking for a supplier in China. Commit to completing each step thoroughly to ensure the final product is exactly what you ordered.
Develop a List of Potential Manufacturers
Because China maintains a huge corner of the market in manufactured exports, there are dozens, if not hundreds, of potential companies that may vie for your business. Narrowing down such a massive list to a few potential options can take time, but there are ways to get to solid leads more quickly. If your search is starting online, you will need to comprehend the difference between:
- Trading companies/importers
- Buying agents
- Sourcing agents
- Wholesalers
- Factories
If you can work directly with a factory for your product, you may be able to negotiate lower costs by excluding third-party interests. This is an affordable way to get your custom manufacturing needs met. Trading companies and other third-party negotiators have to increase the costs to turn a profit, but these types of partnerships may come with the added benefits of supply chain and logistical guidance, order quantity flexibility and easier communication.
Create a Communication Process
Both cultural and language barriers can complicate communicating with Chinese suppliers and manufacturers. There is an entirely different perspective on how to conduct business between Western cultures and Chinese businessmen, but it all starts with communication. Here’s how you can make the process go more smoothly.
1. Use Visuals
When you have a complicated topic or need to present the idea, use a visual whenever possible. A labeled picture of your product or a video showing specific details can clarify issues that can come up when a translator tries to explain your request.
2. Be Concise
It’s possible your communications may be put through a translator. Long, wordy emails can be easily misunderstood or cause confusion, especially if you are trying to cover more than one topic at a time. Be concise, using short sentences and bullet points whenever possible. Make sure there are no spelling mistakes.
3. Learn the Culture
In China, a good business relationship is built on a bond of mutual respect and trust. The term for this business practice is guanxi or guanxiwang. While you may be ready to get down to negotiations and talking about the brass tacks of the business deal right off the bat, Chinese culture focuses on building relationships first. It focuses on networking and having a harmonious obligation to those within your network (whether friends, family, society or business partners). Without understanding guanxiwang, your efforts to secure custom manufacturing help from Chinese partners will fail.
4. Remember the Time Difference
Connecting with a Chinese partner or potential manufacturing provider also involves time zone challenges. Be prepared for potential delays in replies or responses, and try to work out communication needs according to the business hours of the potential partner.
Check on Influencing Factors
When you are in the contact stages of sourcing a manufacturing partner, you can continue to narrow down your selection by observing or evaluating services against a few priority factors. Your needs dictate which of these factors are the most important, but it’s a good place to start by asking these questions:
- What is the minimum order quantity?
- How many test products will I receive?
- What are the processes for checking the quality of the manufacturing?
- What are the payment options for each order?
- What adjustments or savings occur in price when ordering in bulk?
- What are the shipping guarantees?
- What business licenses or credentials do the company or its engineer or project managers hold?
- What is the level of experience for working companies like ours and products like ours?
Final Thoughts for Finding Potential Custom Manufacturing Companies in China
Unless they have an inside track to a leading manufacturing company from a friend or fellow businessman’s recommendation, many companies turn to either the internet or trade shows for potential manufacturing companies. Your final decision-making should include considerations about details such as competitive pricing, quality control measures, and shipping or freight charges. Always make the effort to fly to China to meet directly with your potential partner to tour the factory or facility and work out the final details.
The Leading Source for Reliable Chinese Outsourcing
When researching a high-quality custom manufacturing company in China, be sure to prioritize working with China 2 West. We provide a wide range of China-based services, including vendor management, prototyping, product development and more. We put a strong emphasis on quality control and assurance, giving you peace of mind that the product you order is the one you receive. Contact us for more information.
Sources
https://wise.com/us/blog/made-in-china-manufacturers-and-suppliers
https://www.forbes.com/sites/greenbrandon/2016/12/12/how-to-find-chinese-manufacturers-if-you-dont-know-anyone-in-china/?sh=52eb5b433d3b
https://buildingabusiness101.com/the-usa-vs-china-manufacturing-pros-and-cons/
https://www.salehoo.com/blog/how-to-find-manufacturers-in-china
https://www.investopedia.com/terms/g/guanxi.asp
