Home appliances are big business, and the US market has now become the third largest in the world. With it being so large, though, manufacturers can’t expect to make big profits off of individual sales alone. Instead, they must find ways to keep costs low and production high, thus leading to the popularity of OEM manufacturing in China . But just how much does it cost to manufacture something in China? And why exactly do companies choose this country over others? Here’s what you need to know about OEM manufacturing in China, including reasons why it manages to make your home appliance supply chain more streamlined and more profitable overall.
Better Product Quality
One of the main reasons why OEM manufacturing in China is popular for home appliances is because of the better product quality. In China, there are higher quality standards for products, and manufacturers are held to a higher standard, especially when it comes to exports, as it has put in lots of efforts in making a good reputation for itself. This results in products that are made to last longer and perform better.
In the era of 5G, decades into developing its own home appliance industry, Chinese brands have even successfully ventured out to many western markets and made a comparable name for itself. You can be rest-assured with its quality there.
Additionally, Chinese manufacturers often use better materials than their counterparts in other countries, since China is the source of many types of materials needed. That means it can save you much trouble and risks from importing materials.
Cost Competitive
In general, Chinese manufacturers are able to produce goods at a lower cost than their counterparts in developed countries. This is due to a number of factors, including lower labor costs, economies of scale, and access to raw materials, as aforementioned. As a result, many home appliance brands choose to partner with Chinese OEMs in order to stay competitive on price.
One of the major part of costs is labor. Chinese labor cost is not as low as it used to be, compared with other developing countries like India and Vietnam, but it is still affordable, especially so after you factor in its labor quality. Home appliance manufacturing requires a certain level of skilled labors to make quality products.
China can afford you with the same level of experienced western workers while still being priced moderately, costing you only a fraction of what developed countries can offer. In this era, it’s all about cost-efficacy.
Access to Latest Technology and Expertise
China might have missed the previous industrial revolutions, but it definitely has made it in time for 4.0. That technology innovation has always been translated to home appliance manufacturing.
In Shenzhen alone, one of the world’s largest tech hubs with a strong electronic industry, there are over 2 million factories and about 400 trade zones that specialize in R&D and produce some of the most technologically advanced products around. Not only does this offer global companies access to high-tech factories with expert technicians who know how to work with new tech like IoT, robotics, AI and AR/VR for future product development, but also access to global markets.
AI is nothing new to home appliances. Take WIFI enabled vacuum cleaners as an example. They’ve already been programmed to map out your house and remember where you’ve cleaned so you don’t need to walk back and forth, saving you time and energy. Chinese manufacturers are more than capable of producing a product like this and, in many case, even take it to the next level.
With such technological advancements being made in the hardware side of things, the sky’s the limit for OEM manufacturers there when it comes to creating products that enhance user experience when using their home appliances.
Fast Delivery Time
When you need products fast, you can’t beat China’s delivery time. In general, it takes about half the time to get your products from China as it does from other countries. This is because manufacturers in China are used to working on tight deadlines and can usually meet them. Plus, they have the infrastructure in place to get products shipped out quickly and efficiently, owning multiple world’s busiest ports on earth.
Because of the booming shipping industry, there’re also thousands of shipping services for you to choose, and many of them have their own warehouses or partners worldwide. That way they can even just deliver your product straight to your customers’ doors. And you don’t have to worry about storing all those containers full of goods–it’s a lot easier than trying to store goods somewhere else.
Greater Awareness of Safety and Environmental Issues
China has been making progress in greater awareness of safety and environmental issues, which contradicts many stereotypes that people assume of Chinese manufacturers. In fact, China has been branding itself on making environmental-friendly products, including home appliances. The country has passed a number of regulations to reduce pollution, promote energy efficiency, and increase sustainability.
As environmental regulations in China continue to tighten, Chinese manufacturers are required to develop products that meet these standards. In fact, even if you prefer European design and American technology, it’s possible to outsource manufacturing to a factory that produces green home appliances. In order to make products like dishwashers, refrigerators, ovens and washing machines more energy efficient, manufacturers have incorporated new features such as LED lighting and moisture sensors into their models.
If the environmental cause is what you’d like to pride your product in, don’t rule out the option of China OEM.
If you are just starting out in home appliance, Chinese OEM manufacturers will give your great financial flexibility than their western counterparts. All you need to do is to find a partner that can help you bridge the gap. C2W is one with a British background and 17 years of China experience. Reach out to us if you’d like to get to know more!
