Things to Consider: Chinese Manufacturing


For the past two decades, China’s massive population of more than one billion consumers has had a major influence on the world’s largest retailers and manufacturers. In addition, the country’s huge labor pool has given some outsourcing industry players an advantage over their competitors. Getting to grips with Chinese business customs, and involving the main areas of your business in your Chinese manufacturing operations are the keys to success.

Benefits of Chinese Manufacturing

Compared to other countries in Asia, China has many benefits as far as manufacturing goes. Primarily, this is because the country has considerable expertise and experience, in producing products that meet the stringent standards demanded by western consumers and governments. Also, Chinese labor is substantially less expensive than it is in India for instance, where steep inflation is causing Indian businesses to struggle to compete solely on price.

Each year, the outsourcing market in China is expanding by roughly thirty percent, and numerous companies have established headquarters in China to grow their businesses. Chinese manufacturing opens up a range of potential to create all manner of inventions and products. Furthermore, by manufacturing your products in China, you can produce a larger quantity of products for affordable prices. If you do your homework and contact the right manufacturers, you can form partnerships that can bring your product ideas to fruition. Companies that manage to outsource their manufacturing to China can price their products up to fifty percent lower than their competitors.

How to Start

Due to the increased number of brokers operating in the marketplace, it is becoming relatively harder to find and develop partnerships with direct manufacturers. Nonetheless, when organizations do successfully manage to discover the right partnership, the benefits of forming a relationship with them can be enjoyed by wholesalers, brand holders and retailers alike. Companies that source Chinese products can take charge of their own future, if they dedicate themselves to fostering meaningful, mutually beneficial partnerships which will be shared by all the parties involved.

Regardless of whether one works with third party suppliers, or sets up their own company in China, it is vital that your Chinese manufacturer views organizations’ efforts as fully committed to every level of their business, especially the top level. It is important to work with experienced and reputable organizations that will maintain the safety standards, quality control and performance necessary to stop errors from occurring, and deliver quality production on time. This will save your business crucial investments and avoid possibly damaging your business’s reputation.

Nowadays, numerous retailers are depending less on brand name products, partly because they (and their suppliers) are able to get good value products from Chinese manufacturers. When two products have the same specifications, but one is substantially less expensive, retailers can offer excellent value to their end customers by selecting the cheaper product (providing their customers don’t demand brand names). This is why several famous, big Western retailers are no longer prepared to pay over the odds for branded goods, when they can obtain items of comparable quality for cheaper. Genuinely commit yourself to working diligently with your Chinese manufacturer, as a respected partner, and you can reap the benefits of low cost labor and products, as well as an ever increasing choice of more advanced logistics services.

If outsourcing your manufacturing services to China is a consideration, contact ITI Manufacturing today, for a proven, experienced partner!

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