The FIFA World Cup 2022 had just started on Sunday 20th November in Qatar. Among these games that attract the world’s attention, China is definitely making its presence felt with its manufactured goods.
The stadiums were all built by Chinese construction teams, and the shuttle buses drove tourists around the city. Even though China isn’t represented by its country name at this tournament, it was undeniable how much impact they had here. Around 70% of peripheral goods are supplied by a single city – Yiwu City in Zhejiang Province, which is known as one of the world’s largest commodity hubs.
In light of this, are you interested in learning more about sourcing products from Chinese suppliers but don’t know where to start? In this article, we will provide practical ways that overseas businesses can use when they buy from China. Let me explain.
1. Manufacturing Capacity
It is no surprise that China can be the leading supplier of various products and services used during this year’s FIFA World Cup games. China has been the world’s top manufacturer of many different goods for years, which all come out of the countless factories that are willing to work with other companies around the world.
Aside from the manufacturing factories in the big cities, the influence of manufacturing in rural areas can’t be overlooked. With the rapid development of rural e-commerce in China, the Taobao Villages and Taobao Towns play an important role in the manufacturing industry. More and more young generations who migrated from the countryside return to their hometowns to build up their online businesses by discovering new types of products. For example, golden eggs that are made in the villages sell around China and other countries. In this case, it’s easy for any company to source what they need in China.
2. Low Cost of Labor and Materials
Sourcing products from China has many benefits, but one of the most attractive factors to many small and medium-sized business owners is that it provides you with a supplier who can manufacture products at a lower cost than other countries.
With its large population and access to natural resources on this planet, China has limitless labor resources as well as various materials. As a result, production costs are still relatively low in China. This means that you’ll be able to save money on your products, allowing you to receive a higher profit margin so that you can expand your marketplace in a shorter period.
3. Concentrated Industrial Clusters
As you may know, there are countless factories scattered across China that offer a wider range of products for you to choose from than most domestic sources, which provides you with the freedom to choose desirable factories to meet your needs and expectations.
Why is that? The answer is the concentrated industrial clusters in China. Understanding where these industrial clusters are and how they work will lead you to better sourcing performance.
There are 34 provinces in China, and each region offers its unique expertise and advantages, including relatively easy access to raw materials and components, and an immense network of logistics with several ports.
For example, if you’re an electronics company, then the first place you should visit is Shenzhen, which is known as the Silicon Valley of China. And if you are looking for toy manufacturing suppliers, Chenghai District, Shantou City can be what you just need to increase your business, which has the largest scale in terms of toy production and exporting.
The complete upstream and downstream industrial chain has been well-developed in many industrial clusters in China, giving you convenience and accessibility when it comes to approaching a new business partner.
4. Strong Logistic Supporting
Poor logistics will cause your project to backfire and could result in costly repairs. Luckily, strong logistical support has greatly facilitated the progress of manufacturing industries in China.
There is an extensive network of logistical chains, such as international ports, which make it easy for you to deliver your product to your destinations. For instance, Alibaba‘s logistics company Cainiao opened a World Cup Logistics Line to transport goods from Yiwu to Qatar and throughout the world before the game starts.
With all the establishment of highly developed instructions and support from domestic and international logistics providers, you just need to work with a sourcing supplier that is well-versed in the exporting processes.
5. Reliable Quality Inspection
In recent years, China has been developing its manufacturing sector through various national policies which have led to changes in many industries.
As a result, manufacturers all over China have been compelled to comply with higher standards and become more qualified. More and more factories obtain international certifications like ISO and CE. For this reason, overseas vendors can now shop around without worries, knowing that China-made products won’t get rejected due to a lack of compliance or quality concerns.
In addition, there are a number of options for reliable quality inspection. You can hire a third-party inspection company to help with your sourcing project. These companies provide a variety of services, including verifying your sourcing supplier to ensure compliance and quality through internal audits and checking your product to ensure quality before leaving the factory.
Conclusion
Now, you have a better understating of the advantages of importing China-made products. And thanks to access to technology and globalization, it has become much easier for international companies to successfully import a wide and diverse pool of items from China.
However, sourcing is still a complex process involving lots of trials and errors. Also, finding someone trustworthy enough to act as your local product-sourcing team is not always an easy task.
If you are looking for a professional and knowledgeable product-sourcing agent to make your procurement process more than worthwhile and hassle-free, look no further than China 2 West.
We’ve been assisting both start-ups and well-established businesses in locating quality products for over 17 years – with more than 15,000 projects completed so far! You can find out all about what we offer by getting in touch with us today.
