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How Successful is China Manufacturing Industry?

Manufacturing plays an important role in China’s economy.  As per a report reconciled in 2015, it was found that manufacturing contributed to about 27% of the country’s output and this volume that China manufactured was about 20% of the world’s total manufacturing output. With $2010 billion manufacturing output, it was leading with a good margin from the next country in line – the US. The output of the China manufacturing industry has risen by 339% in the last ten years. Growing at a CAGR of 7.16%, this sector contributed about 50% of the world manufacturing output in 2017. Some of the reasons behind this are: – The labor costs in China are substantially lower than the cost of labor in most developed and developing countries. Raw materials, semi-finished products and final products are all of the highest quality.Raw materials are priced affordably and are considerably cheaper because they are produced in China itself and also because these materials are in great demand all over the world, thereby driving the rates lower.There is no export related additional charges. Some countries like the US have no import duty on products imported from China.Presence of trained manpower and that too in good strengths because of the high population of the country;Faster production rate and prompt deliveries by China manufacturing industry.Professional attitude of the companies working with foreign organizations.Experience of working in the outsourced gamut for years now. Some more interesting facts about China manufacturing industry here: a report by the National Geographic in 2008 mentioned that China makes about 70% of the world’s umbrellas and 60% of the world’s buttons.50% of toys and kitchen appliances sold in the US comes from China. Some more facts – Made in China 2025 movement has seen the modernization of electrical machinery in industries.It has about 100,000 garment making companies.Has the world’s highest concentration of auto-parts manufactures.Has been the largest exporter of furniture for years now.The bags and accessories segment here is growing at a rate of 14.5% every year.
Posted by Seline Chan
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Important Points Before Purchasing from Wholesale Suppliers in China

China has been the source of global-based manufacturing for years now. China has distinct advantages when it comes to manufacturing and this is why foreign based manufacturing companies’ tie-up and outsource work to Chinese companies. But foreign companies often tend to falter when making decisions related to buying from the Chinese wholesale suppliers. This could be because of the lack of experience of dealing with the wholesale market in China or because of changing market trends. Here are certain points that foreign buyers need to bear in mind while outsourcing from wholesaler suppliers in China:- It is best to hire a trading company rather than tie-up direct with a factory. While the latter method also works, when foreign buyers keep a middleman involved who is well-aware of the conditions on ground zero and is from the local community, the results are much better. The trading companies, once appointed, act as the agent or representative of the foreign buyer and since they know the exact condition of the industry and factories in the local market, he will definitely get the best deal for the buyer.Being fixated on price is never a guarantee of the quality of the products. Cheaper prices often mean the use of sub-standard quality of products that will directly affect the quality of the end product. Also dealing directly with a supplier with cheap rates can land in last minute surprises where the factory might include add-on charges that were hidden before. This can drastically affect the budget of the foreign buyer. Hence it is important to research well and explore all kinds of opportunities before finalizing wholesaler suppliers in China.Foreign buyers need to study the different existing industrial clusters in China because every cluster has its own specialization. Often buyers land up on their own in a particular industrial zone and are disappointed when they fail to find impressive suppliers there. The problem is that the buyer does not understand the different zones present in the country and the expertise of each zone. Another important consideration when dealing with wholesaler suppliers in China is the sampling. Buyers must ensure that they sample products well and only sign on the dotted lines when the sample meets the pre-required standards and is the exact dummy of the final product.
Posted by Seline Chan
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Which Business Can Use China Promotional Products?

Promotional products are basically branded corporate gifting items. The marketing and sales department of almost all types of businesses in this world at some point or the other practise corporate gifting that is mostly done to their business partners, B2B customers, dealers, retailers, vendors and suppliers, to media people and/or to the end customers. Promotional products can be handed out at promotional events or during national festivals or the celebration of a milestone etc. Mostly promotional branded items are used by organizations to gift their business clients. China is one of the largest manufacturers of promotional gift items today.  China promotional products stand apart from the rest due to two reasons: – Cheap and affordable pricing; andExcellent quality products When it comes to gifting items, Chinese manufacturers offer maximum possible options to their buyers. However, when you intend to procure China promotional products, you need to ensure that the Chinese supplier meets certain key criteria: – Having a good track record and is highly recommended by their previous customers. Ask for references – not only local contacts, but also international customers who have bought promotional products from the supplier before. Some of the suppliers are world-famous today for their professional services – you can choose to work with only the reputed ones in the industry. You need to ask lots of questions to find out if they will be able to offer the exact kind of branded gifts and branding solutions that you are looking at. Experienced and specialized suppliers will have a flexible attitude to find the best solutions for your requirement. Have the necessary experience and expertise to offer good quality branding service. Offer China promotional products that have been manufactured under strict quality control and compliance standards. You would obviously not want to handover an unsafe and risky branded gift to your business client or dealers.You need to ensure that the Chinese supplier has the means to package the items professionally and have proper logistics team in place to handle the export procedures. They are like party to international insurance and have the capacity to coordinate well with the ports during transit of the shipment.
Posted by Seline Chan
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Sourcing Agents in China – Why Hire Them?

Chinese manufacturing companies are popular throughout the world for their efficiency in reducing production costs by almost 25% to 50%. However, international buyers keen to work with Chinese manufacturing companies need to hire sourcing agents in China. Though it is not mandatory under law, but it is recommended because there are plenty of benefits when you have the right sourcing agent working on your behalf in China. They offer wholesome support so that you can save costs and time. Imagine traveling through the length and breadth of China looking out for the right supplier. Not only will the traveling and hotel costs work out to be expensive, you would also not be aware of the local language and the work culture making you an easy prey to scrupulous people who may misguide to earn some quick money. Other than this, you would need a local person to guide you through the various cities and industrialized zones in the search for the right manufacturing unit. All this is risky as well as time-consuming and involves lots of unwanted expenses. Local sourcing agents in China would not only have first-hand knowledge about manufacturers, suppliers and industry specific work environments, they would also have an eye for the most viable quotations and production capabilities. Sourcing agents in China are reputed to offer one-stop solutions to their buyer counterparts. In this way, they eventually end up acting as your local representative in the country and with proper working relations, their entire work will be focussed to bring to the table, the most lucrative offers, the best quality products, the best manufacturing units and the best quality raw materials for your production job.Working as your local representative, the outsourcing agents in China will ensure that the communication between your in-house units and that of the supplier is crisp and clear for they will, on your behalf communicate with the supplier in the local language and revert back to you in professional English language.Choosing the right outsourcing agent in China is of great essence because they audit the factory site on a regular basis and have quality inspections done to ensure that the production process is foolproof.
Posted by Seline Chan
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China Sourcing Companies – What they do?

Once you have decided to outsource your manufacturing to a company in China, you need to hire a local outsourcing company in the country who will assist you in varying capacities depending upon the kind of handholding your business requires to find a reliable Chinese manufacturing unit. China sourcing companies are basically third-party service providers who offer end-to-end support and outsourcing solutions to international buyers who have huge manufacturing orders to contract and need comprehensive professional assistance. Some of the tasks that the outsourcing company will handle on your behalf include: – With the Chinese manufacturing industry in high demand from the world over for their manufacturing capabilities and low production costs, sourcing the right manufacturing unit for your business can be a tedious and time-consuming job. For a new entrepreneur as well as for an established business, there are many other aspects of their business that require equal attention as production. Hence hiring China sourcing companies is a good idea who is there to offer complete sourcing service in terms of –Identifying the suppliers and pre-qualifying them for your businessCarrying out factory and manufacturing unit auditManage all the rates and quotations on your behalfThoroughly involve during the prototyping, product development and testing processes.Select the final supplier and close the contractTake care of the logisticsManage payments to the supplier on your behalfHelps manage all quality control processes and procedures.While managing all this, the China sourcing companies will also ensure that they scout the entire country to source the right supplier for you.In case a business wants to change the supplier, the outsourcing company would be able to provide all-inclusive solutions so that the alteration affects the overall production quality and costs minimally.China sourcing companies will also be in regular contact and communication with the stakeholders of your business and provide them customary MIS reports. Choosing the right outsourcing company in China is the right foot forward. The best in the business would have trained and experienced in-house professionals and systems to manage the entire workload.
Posted by Seline Chan
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China Wholesale Suppliers – Get Raw Material in Bulk Mode

China wholesale suppliers have the potential to supply raw materials in bulk for varying industrial production and manufacturing processes. Just like labor cost, raw material costs are also quite cheap in China. This is primarily due to two basic reasons: – All raw materials in China are produced within the country. None of the component or ingredients of the raw materials are imported from any other country.Since raw materials from the country are in great demand throughout the world, China wholesale suppliers keep the pricing low. The other important point to note here is that China has no export taxes that also help in keeping the prices reasonable and affordable. Also, China wholesale suppliers can produce the raw materials in bulk, thereby decreasing their production costs and in turn pushing down the selling prices of the raw materials too. Today most western countries of the world buy raw materials in bulk from the non-western countries, and China tops the list. Here are some facts and figures: – 70% of critical raw materials are supplied by China to the world;Some of the critical raw materials produced in China include Antimony, Gallium, Magnesium, Natural graphite, Tungsten, etc.China is also a major supplier of Cobalt in the world. The fact that China is one of the preferred destination for outsourcing manufacturing processes globally is driven by two major facts – one, Chinese labor is thoroughly experienced but is way too cheap compared to the labor costs in your home country; and second, bulk supply of raw materials helps in keeping production costs really low. Hence, even if you plan to have your production unit in your own home country, it makes perfect business sense to procure the raw materials in bulk from China wholesale suppliers. In order to procure authentic raw materials, it is essential to pick the right suppliers for your raw material. Since the final product is completely dependent upon the quality of the raw materials, procuring raw products from the right China wholesale suppliers is highly critical. Buying raw materials from reputed and trustworthy suppliers can also form the foundation for a strong working relationship for the future.
Posted by Seline Chan
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How You Can Get Help from Manufacturing Companies in China for Overseas Business?

The power of China as a manufacturing hub is not hidden from the world. One of the greatest joys for an entrepreneur is the manifestation of his designs and dreams into practical products and goods. However, when it comes to full-fledged production – turning blueprints into feasible and realistic goods for use, decisions need to be arrived with caution, weighing all the related pros and cons. Production costs are one of the biggest de-motivators as entrepreneurs get ready to turn their dreams into reality. Outsourcing the manufacturing to reliable and specialized manufacturing companies in China is one of the options that many in the Western world consider to be the best way to manufacture products cost-effectively. Globally, China is the sure-shot leader in manufacturing with the industry worth more than $2.01 trillion currently. In 2014, about 120 million workers in China were involved in the manufacturing industries – a number that was at least ten times more than the US figures for the corresponding industry. The question is: How can manufacturing companies in China help overseas business? The answer is: Substantial reduction in manufacturing costs. This is one of the primary reasons why most overseas businesses use the services of manufacturing companies in China. Low manufacturing costs in China are due to two reasons- the labor here is comparatively cheaper than the rest of the world; and tremendous scalability and flexibility of the manufacturing companies in China who are thoroughly specialized in manufacturing all kinds of goods and products.For businesses that are looking at expansion and want to test the waters first before probably going into in-house large-scale production can outsource the job to companies in China so those customer reactions can be gauged precisely, and production estimates are calculated with accuracy.With manufacturing companies in China, businesses can manage their lead times better. China companies are quite adaptable, and they can help companies cut down on lead times and ship quicker deliveries.Production related efficiency is another big plus point in favor of Chinese companies who are thoroughly proficient in manufacturing related aspects.
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Importance of Pre-Production Inspections – Quality Control Inspection Services

Quality is probably the most essential factor to consider by any industrial and manufacturing unit. Whether it is a B2B business or a B2C business, if the company can deliver quality goods and services to its customers, it can grow into a successful business. Maintaining quality is also an important parameter in controlling production related wastes and achieving optimal production capabilities. Quality control inspection services help in ensuring that the quality of the goods at different stages of production is as per pre-determined standards and specifications. This is critical for any business if it does not want to lose its credibility and goodwill in the market due to production and delivery of sub-standard goods. It typically happens in three stages – Pre-production inspection – this is essential to check that the raw material and other essential basic components are meeting the defined standards or not. Production related inspection – this quality control inspection services is related to testing goods in the production process and resolve quality-related issues when the goods are being transformed into the final product.Quality checks during pre or post packaging of shipments to rule out unsafe and unprofessional packaging. Why quality control inspection services are important? Creates a formidable brand name for an organization – customers start to trust the goods and products sold by the brand because of consistent high quality.Helps save production costs while minimizes wastages in recalls and procuring of defective raw materials and work-in-progress components.The inspection process also helps organizations to anticipate and inform buyers if there would be any production or shipment related delays.Quality control inspection services are accepted globally as businesses that want to work at international levels need to ensure quality compliances and ethical manufacturing. It is essential that the Quality control inspection services are done by a professional and trained third-party. This is because safety and quality issues are becoming more complex day by day. People having core expertise in this area have the proper know-how of the processes and systems that can help companies meet their quality control standards optimally.
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Why Quality Control Services are So Important When Importing from China?

Why is China quality control service important? Quality control is important so that the problem in the product can be detected in the production stage. This will be helpful because the costs can be reduced when the testing can be done in the initial stages. This will prevent the entire stock from getting piled up due to quality issues. Hence testing of the quality is very important. When the company is engaged in importing products from China, then quality checking is very important. This is because the respective company in China may not be yielding a perfect batch. The problem can be detected at the initial stage and the batch can be checked before importing with China quality control service.  When the buyer is importing from China, it is thus very important to check the quality of the products. Both product specifications and manufacturing process specifications can be checked. The main idea is to identify the imperfections in the product and make it error-free before it is imported. The initial batch can be detected with the problem and the future batched will become perfect. The risk quotient is always engaged with the import of the products because the payment is released before the product is shipped. Thus, the company may receive low quality products. This can impact the business of the importer and can even ruin their reputation in the market. With proper China quality control service, the timely delivery of the products can also be assured. This is because the lot or batch after the initial one will be error-free and the need to do the testing of the same may not be required which will definitely save the time. The best way for the importer to be sure of the company with which they deal is to conduct a factory audit. This means that the factory will be checked, and the company’s license will also be checked. This will yield their credibility, and everyone knows that a credible company will never try to ruin its image. Poor quality can rig the image of the company. Factory audit is the best way to be sure of the quality produced by the Chinese company and the importer can be stress-free.
Posted by Seline Chan
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Importance of Private Labels – Where and How You Can use Private Labels

Private labels in China are given by the retailers, but the fact is that they may not be the designer or the manufacturer of the product even though they use their name and sell the same. But this does not mean that the respective company does not produce its own products. It is one of the most common elements followed in the retail market. It is an effective way to stay away from competition prevailing in the market. The retailer gets the exclusive right to sell such products and if it becomes a hit amongst the target audience, then the retailer can even get the advantage of being the only sole provider of the product. Thus, they can set their prices higher and yield great returns. Following are the advantages of Private labels in China: The retailers can get a high margin of profit. When the companies are engaged in making their own products, then the cost incurred for the same is much lesser than getting the product outsourced. Thus, the costs are reduced and then the overheads are also controlled. This is a major advantage for the companies.The retailers of private brands get the exclusivity of selling the product. If the product is marketed well and the customers like it, then the retailers are set to reap profits because the company becomes the sole producer of the product.Brand loyalty can be achieved with the help of private labeling. The customers who like the product will become the loyal customers and the demand for the same will be uniform. Moreover, a customer base will be created, and further loyal customers can be achieved.The retailer can operate as a wholesaler also. They will restrict the accessibility of the product to other retailers and in this way become an efficient wholesaler of the product. Thus, the Private labels in China acts as a great platform for the retailers. There are various companies which are operational as private labels and hence are making great profits too. It is a big industry and several products are available in the market.
Posted by Seline Chan