In 2020, China’s exports of goods to the U.S. amounted to a staggering $434.7 billion. This makes it one of the world’s sourcing powerhouses.
The high rate of China’s exports may be attributed to the low manufacturing costs. It’s why many businesses prefer China sourcing. If you source products well, you can get them at an extremely low unit price and increase your profit margins. What’s more, you can also lower your costs and ensure an uninterrupted supply of products throughout the year.
Unfortunately, there is still a lot of misinformation about China’s sourcing. Below is a guide that explains the benefits of sourcing products from China to set the record straight.
Expansive Supplier Base
One of the main reasons why you should source China products is the vast supplier base in the country. What’s more, China’s supplier base is diverse. From textile and consumer goods to apparel and electronics, you can find the right sourcing company to make any type of product that you want.
The country has different industrial clusters including a large number of companies and firms located in a distinct geographical area. For instance, you can find supplier bases for cosmetics in Guangzhou while Tongxiang is the manufacturing center for home utility products and fabricated kitchenware.
If you want to source the OEM manufacturing for metal tools and the kitchen sink, you should get in touch with a sourcing agent that’s familiar with this geographical area.
Additionally, you can source hardware in Yongkang and electronics products in Shenzhen. When China sourcing, you’ll never miss out on the product you’re looking for. It’s your one-stop shop for all your business product needs.
Lower Labor Cost
Wondering why it’s cheaper to make products in China? It’s due to the lower labor costs. Labor cost is an essential factor that helps regulate the overall production cost in the manufacturing sector.
Since China is one of the most populous countries in the world, it’s easy to get plenty of skilled and unskilled labor locally. The abundance of local labor allows sourcing companies in the country to set lower manufacturing costs.
What’s more, their government policies also allow manufacturers to ensure quality work standards without the need to increase labor costs. Additionally, most workers in China have years of training and experience in their respective niches.
As a buyer, you don’t have to spend time and money in training to get quality products. A China source agent can help you find cheap but skilled labor so you don’t have to hassle.
Excellent Product Quality
There is a common misconception that products from China are not durable, with some people referring to them as use-and-throw-quality products. But this is far from the truth. Many small and medium businesses have sourced high-quality products made in China.
Most suppliers in China have years of hands-on manufacturing experience so they know the ins and outs of the process inside out. They also know the best and the cheapest places to get premium-quality raw materials. Also, they may have the right equipment needed to maintain a stellar quality standard.
China also has leading manufacturers that are willing to invest in suitable equipment and technology to make products. Besides, you can hire a third-party quality control company to confirm that the source products from China confer to your technical specifications and quality standards.
Most reputed manufacturers in China are aware of this, so they are willing to submit your products to quality inspections at several stages of the manufacturing process.
Better Scaling Capabilities
The infrastructure in China is robust and well established and robust. Furthermore, most Chinese manufacturers also have years of experience comprehensive understanding of global supply chain management. These factors enable them to scale-up manufacturing as and when needed.
For example, you can increase your China sourcing products from a thousand to more than a million in just a few days or weeks. But the specific time for scaling up will depend on the type of product you’re sourcing, the availability of raw materials, and more.
In addition, most manufacturers’ policies in China do not need buyers to invest heavily in Minimum Order Quantity (MOQ). Since you can pay lesser costs for MOQ, you can start sourcing products in small amounts. As your business grows, you can scale up. This can be good for startups.
Direct Sourcing
When it comes to outsourcing products, buyers often have to deal with middlemen, resulting in delays and increased costs. But sourcing products from China is different. You can ditch the third party and directly deal with the manufacturer.
China has an extremely competitive OEM sector. This is why most of their manufacturers prefer to deal with the buyers directly to eliminate the increased costs of third parties. In some instances, you have to work with just one product sourcing agent, ensuring it’s easier to source products.
You can connect with a reputable China sourcing agent or supplier by visiting several traders’ markets in China or attending international trade fairs via online marketplaces.
Reactivity
Want to get your products fast? China sourcing is your best bet. Thanks to the country’s manufacturing maturity, you can easily get suppliers that offer swift production setups and smaller batch sizes. China sourcing has also unlocked agility through near-shoring. This has brought production closer to end consumers.
Speed isn’t the only desirable aspect of sourcing products in China. They react fast to your preferences. For example, they can make your purchasing and production more demand-led to reduce inventory problems and increase your ROI.
Customized Services
China sourcing is the best way to source products tailored to your needs. Whether you want to modify an existing product with your new branding details, manufacture your own product, or you want to order standardized goods, Chinese suppliers can make it happen. All you have to do is communicate your needs to them.
Dependable and Hassle-Free China Sourcing Solutions
Looking for a reliable, low-cost, and comprehensive solution for supply chain management, quality manufacturing services, and product development in China?
Look no further than China 2 West. We offer high-quality and competitive manufacturing services, supply chain management, quality control, and product development requirements. Get in touch for more information on China sourcing.
