Over the decades, China has steadily grown to become the industry leader when it comes to mass production and manufacturing. It’s easy to see why many companies from around the world have moved parts of their businesses to China, including industry giants such as Apple, which works with contract manufacturers in the country.
Smaller companies, however, remain apprehensive about manufacturing their products overseas because they are afraid of losing control of the quality. If you feel the same, here’s good news: A reliable contract manufacturer in China can reduce your risks. Working with a dependable partner can save you money while increasing your profitability. Here are some things to keep in mind when selecting a contract manufacturer in China:
Do your research.
How many years of trading experience do they have? The best companies have been in the industry for over a decade. Are they affiliated with leading institutions such as the American Chamber of Commerce in China? Who are their past clients and were they satisfied with the experience of working with this potential manufacturer? More importantly, do they have the necessary certifications, registration and license?
Check their capabilities and limits.
Are their facilities fully equipped to provide you with what you need? Can they produce at the level of world class quality that matches industry and global standards? What is their production capacity—is their team big enough to handle your order? Understanding and defining the limitations and expertise of your potential manufacturer is essential in setting expectations.
Understand the cultural differences.
China has changed greatly over time, but there are still cultural differences intact especially when it comes to business negotiations. Western businessmen tend to go straight to the point, while Chinese businessmen typically beat around the bush. More often than not, you may need more than one meeting before coming to an agreement.