This blog will try to provide you with an unbiased, objective comparison of manufacturing in China vs Vietnam. Why is this comparison important? It has been considered almost essential in manufacturing to take advantage of the low costs in China for decades. However, making the comparison between China and Vietnam recently became more relevant. This is owed to the fact that China’s average hourly wage rose to an all-time high of 82461 CNY per annum in 2018. This translates to roughly 11786.06 USD using an online conversion tool. As a result of these wage changes, other South-East Asian countries, like Vietnam, were able to compete with the previously unbeatable costs in China. The US-China trade War also caused significant uncertainty over the future of manufacturing in China and led to a change in focus to other countries. C2W have regional offices established in Bangkok, Thailand and in Ho Chi Minh, Vietnam. Get in touch for more information. Costs Many businesses with an existing supply chain in China are unsure whether to relocate to Vietnam. It is key to consider the costs of: wage and labour, importation, relocation and facility development and quality control. For a more detailed discussion about these factors, see ‘The cost of moving an existing supply chain from China to Vietnam’ blog. Continue reading for a more broad comparison between manufacturing in China and Vietnam. Sourcing a supplier One of the first things to consider when deciding whether to move manufacturing to Vietnam is the ability to source a supplier for your specific product. China boasts a huge range of manufacturing teams with experience in an unbelievably diverse range of products. This means that it is not difficult to find a company able to meet your demands. However, Vietnam has the highest rate of industry diversity in the whole of South-East Asia proving it to be a strong competitor for China. It is also the world’s second largest exporter of smartphones and the second highest sourcing country for garment imports in the US. Such figures suggest that Vietnam may be the best choice for these types of products. Therefore, when considering this diversity and your product requirememts, you may find it more effective to manufacture in Vietnam. China 2 West are able to advise you on which location is best for your specific manufacturing requirements. You can contact us here. Workforce When comparing manufacturing in China and Vietnam another factor to essential consider is the capabilities of the work force. Quantity Although it has been suggested that China has an aging population and thus a falling working-age population, it has been found that China has nearly FOURTEEN TIMES as many workers as Vietnam. Such figures indicate that China may offer the benefit of more workers. This benefit may also apply to China’s quality of workers. Quality China has a more mature manufacturing industry compared to Vietnambecause of its long-standing dominance. This often means that China’s factories and workers are far more experienced in their type of work suggesting that, broadly speaking, you can trust in their ability to complete a job properly. Despite its industrial diversity, Vietnam’s work force and factories are likely to be newer and therefore less mature than those in China. Consequently, this can have relay effects on worker and machine productivity as well as on the quality of products. It is important to consider the level of quality you require in your products when comparing China’s and Vietnam’s ability to make your product correctly. After all, years of practise and experience doesn’t go unnoticed in the manufacturing world. Nevertheless, it will not be long before the gaps that exist in the market begin to close as the quality of workers in Vietnam continues to grow. C2W’s workforce in Vietnam work to the same high standards as all of the other regional officers in China, Thailand and the US. You can be sure that using C2W will avoid issues regarding quantity and quality of workers. Speed of production Closely linked to the capability of workforce is the speed of production. This is a particularly important aspect considering how fast industries move onto the newest trends. Intellectual property agreements If you already have an existing supply chain in China and are looking to relocate to Vietnam, intellectual property (IP) agreements are crucial. Chinese manufacturers have the right to refuse transfer to Vietnam if they have done any custom design for you. This includes custom designs, moulding or tools. You may also find that your IP coverage does not specify in all areas of production because there are multiple types of patents. Be sure to research this properly and be in-the-know about IP laws in China and Vietnam. Location China is home to seven of the world’s 10 busiest shipping ports and has an extensive rail network. This offers a number of manufacturing benefits but Vietnam also benefits accessible road and shipping links to China and other key locations. Reliance on imports It is also important to consider Vietnam’s reliance on importations. In Vietnam, 70-80% of fabrics used to make clothing are imported, mainly from China. The case is similar for electronic products. It may be more time and cost-effective to source directly from China if this is relevant to your specific production requirements. Sustainability The importance of environmentally conscious manufacturing becomes increasingly important. As the effects of global warming worsen and as consumers become more concentrated on green efforts, these ideologies have a huge impact manufacturers. So who is more sustainable? On the surface, China’s maturity may suggest that it is likely to work flexibly with changes in demand and more able to source sustainable materials. This maturity also means that it is extremely easy to source inspection agencies and suppliers that are experienced in meeting international standards. Therefore, it may be more legitimate to use a company that abides by these guidelines in China compared to newer and less regimented companies in Vietnam. All C2W regional offices are western owned and managed meaning that we provide western standards of service, goods and inspection. This too is true for the precision assembly and manufacturing company Shield Works. We hope that China 2 West’s 14 years of experience and ability to work flexibly will put your mind at ease when considering if we are able to meet a client’s environmentally conscious demands. China-Us trade deal The China-US trade deal has caused a lot of tensions and concern for the future of manufacturing in China. Many companies have consequently been seeking to move manufacturing to Vietnam. A fair comparison Vietnam does increasingly well compared to other South-East Asian countries so it is not fair to compare Vietnam to China only. Other comparisons It will also be useful to compare manufacturing in China vs Vietnam against the rest of the world on a number of validated indexes. Examples include: – The World Bank’s 2018 Logistics Performance Index – The human capital index ranking Conclusions: Vietnam may have a less capable workforce than China but sourcing high quality manufacturers in Vietnam is easier with China 2 West’s help. The best location for manufacturing may depend on the product requirements.Intellectual property agreements are crucial when seeking to relocate from China to Vietnam. Chinese manufacturing may be more in-line with international standards of inspection and production. Although, many facilities in China and Vietnam have extremely high carbon emissions and little concern for pollution. It may not be fair to compare manufacturing in China vs Vietnam without evaluating Vietnam’s position among other countries.The validity of this information may vary depending on the changing political situation. Using China 2 West as your service provider can alleviate differences in quality and ease of business that exist between Vietnam and China. Image showing China 2 West regional office locations Contact us Get in touch for more information. Please note that this information was sourced and written with the aim to inform and C2W does not take responsibility as to its accuracy, completeness or correctness.
China is universally popular for its wholesaling capacity and quality of products. It is because of the economic costs and faster turnaround time that international companies are always in search of good and reputed China wholesale suppliers. Find Reliable China wholesale suppliers The first part of the process involves searching and finding reliable China wholesale suppliers. Typically, international buyers have three options to go about doing this: Search Online In the online world, there are many Chinese wholesale sites from where ordering is easy. Because the minimum order quantities are usually much lower than that of the factories. It is also a great way to save time and money. The only nuisance to this process is that buyers cannot upfront check the quality of the items before ordering. Participate in Chinese Trade Fairs The other way of finding the right China wholesale supplier is to participate in Chinese Trade Fairs where buyers get to meet suppliers direct, can sample items and also negotiate on deals. The only con of this method is that it can work out expensive as one needs to travel to China and spend time here to find the right supplier. Most international trade fairs in China will be at Hong Kong, Guangdong and Zhejiang. Directory website The other way to get in touch with wholesalers in China is through a directory website that would list out a complete list of top wholesalers, manufacturers and factories. Only the contact details are featured here – for rest of the information, buyers need to touch-base with the suppliers direct. Assess the Quotation The second aspect of ordering from China wholesale suppliers is to assess the quotation and detailed proposal from the suppliers. Minimum Order Quantities And the last aspect that needs to be kept in mind while working with Chinese wholesalers is about the minimum order quantities. The manufacturing units would generally demand a certain MOQ and even offer lower prices to lure the buyer. However, since the final call is with the buying company, it is advisable to first check the market conditions where the buyer wishes to sell and other industry-specific details before committing on the MOQ. Working with wholesalers in China is not tough if you make the right selection wisely.
This blog will discuss a number of advantages you can reap from selling a Chinese Private Label Product. Actually, not all third-party manufacturers can offer the same advantages when you work with them. By choosing China 2 West as your third-party manufacturer for your Chinese private label product, you will benefit from a number of advantages. And these advantages are important aspects of business to consider when seeking your newest private label product manufacturer. Here are some of the benefits you gain when working with China 2 West as your right third-party manufacturer for your company. Individuality With a private label product, you are setting yourself apart from the rest and become your very own, unique brand! Adaptability Having a smaller private label product means you can meet the ever-changing demands in the market. Of course we can help with that! China2West is adaptable and flexible meaning that we can work quickly to suit such demands. You maintain complete control over production You’re the boss of your own product. It means that you have full control over production and how you want your private label product to be. As a third-party manufacturer, we follow your direction and work to your request. This control goes down to the very core of every product, as you maintain complete control over every single detail! Ingredients, quality, size, design…the list goes on. You maintain complete control over pricing Because you are in control of what we are producing and the ingredients we use to make it, this reserves you a choice over price. We can provide you with services and products suited around your chosen price range to compliment your business requirements. You maintain complete control over branding A private label product is exactly as it says on the tin. It bears YOUR brand name and is branded, packaged and designed to look exactly how you wish. We hope that this blog is useful in explaining the benefits you can gain from becoming a private label product seller. In addition, for more information about how China2West can help you in your decision check out our other blogs and website for details on the services we provide under the ‘Services’ tab.
Businesses and factories are affected for a number of weeks prior to and following Chinese New Year so it’s important for you to know what to expect and how the holiday will affect your business. This blog will explain what CNY is and provide you with information about what preparations you need to be taking during this time. Overview of Chinese New Year It is traditionally the case that Chinese workers will leave work and travel back home to celebrate the holiday. Although CNY only officially lasts for one week, offices and factories close roughly 10 days before CNY begins and can last for roughly 3 working weeks. It is also important to bear in mind that the exact date of Chinese New Year changes and will not always be January 25th. Always be aware of when Chinese New Year will occur each year and plan accordingly. Take home points -Chinese New Year 2020 officially begins January 25th. -Your orders need to be shipped well before CNY as shipping and delivery stop during this period. -Forecast the services and goods you will require for the first few months of 2020 because CNY leaves lasting effects on productivity. -All banks in Mainland China and Hong Kong close during the days surrounding CNY. Communicate with the C2W team to sort out the best way to deal with transactions. Other things to consider Inspection, monitor and communication The effects of long distance working relationships can be felt during this period if you do not have a strong relationship and communication with your Chinese providers. CNY causes a lot of pressure on factories and workers. The increased demand can result in a fall in quality in facilities that are less equipped to deal with such demands. If you are not working with C2W or a trusted manufacturer, then we strongly advise increasing inspections, monitoring and communications during the months leading up to and after CNY. Red Envelopes Giving red envelopes is the local practice in China. They are bonuses given to employees in January around CNY. Get in touch with us to discuss this further. Other holidays There are a number of other holidays in China that effect business. Make sure you are also aware of these. One key example of this is Golden Week Holiday, October 1st – October 7th. How can China 2 West help? -The diversity of our team and the wide range of languages spoken within our offices can remove any confused and rushed communications with your service providers. -Being based in China for the past 14 years means we can offer you the advantage of no time zone differences. We can work with your Chinese providers directly and avoid and delays to productivity. Get in touch with us today. Alternative locations Did you know that C2W also have regional offices outside of China? This includes Vietnam, Thailand and the US. These might be good alternatives if you’re looking to do business during Chinese New Year. However, do be aware of Tet, the Lunar New Year holiday in Vietnam. Tet is also on the 25th of January 2020 but business and factories only close for around 1 week. The date for celebrating Tet also differs from year to year. More information! 2020: Year of the Rat 2020 marks the year of the rat, a symbol of wealth. C2w wishes you a lucrative Chinese New Year!
This blog will discuss a number of advantages you can gain from selling a private label product. By choosing China2West as your third-party manufacturer for your private lab, you will benefit from a number of advantages. Not all manufacturers can offer the same benefits so make sure you do your research.You may also find our other blog useful. ‘Choosing the right private label manufacturer’. Individuality With a private label product, you are setting yourself apart from competitors and become your very own, unique brand! This can be particularly advantageous if you already have loyal customers who would be likely to chose your product over competing brands. Adaptability Having a smaller private label product means you can meet the ever-changing demands in the market by remaining flexible and adaptable in the products you offer. China 2 West are adaptable and flexible so you can be certain that we can work quickly to suit these demands. Control When working with a third-party manufacturer, you are the boss! You have full control over the production, price and branding of your product. A private label product is exactly what it says on the tin. It bears YOUR brand name and is made with YOU in mind. C2W will follow your instructions and work to suit your needs. For more information, check out our website hereContact us for more information or to discuss your personal requirements.
This blog will discuss what a private label product is, how to find your newest private label product manufacturer and why China 2 West is the best choice. What is a Private label product A private label product is a product that is made for a company by a third-party manufacturer but is retailed under the retailer’s brand name. That third-party manufacturer would be China 2 west and we would work flexibly to suit your specific requirements. What does a good third-part manufacturer look like? Expertise It is important to product expert quality products when starting a private label product. The last thing you want when retailing a brand-new product is to be providing a product that isn’t done correctly. With such competition in the market, it is important that consumers chose you and stay loyal to your brand. After all, consumers love good quality products made by specialists in that area. China 2 West has 14 years of China based operational and manufacturing experience. By partnering with us and implementing our solutions, you can make your product become more competitive. QualityProduct quality is a competitive marker for brands that affects purchasing decisions and profitability for in private label manufacturers. It’s very hard to find new customers all the time. If you can retain previous customers through product quality, you will be able to increase your average customer’s lifetime value. In order to keep product staying in the high quality, it’s advisable to get samples of the private label product made. In this way, you can test the products before they go to market.You can even visit the factory to oversee the production process before committing to a manufacturer. China 2 West offers 24/7 live video. So that the client have access to production zones online. Reliable deliveryBefore committing to a manufacturer, ask them about delivery times. Any delays in getting your private label product to your store will result in lost sales and unhappy customers. China 2 West can ensure consistent and safe delivery of your products. Few examples China 2 West are experts in a diverse area of production. Just a few examples of these include: Fitness productsStampingElectronicsPrinting and packaging
Rapid Prototyping is one of the latest methods. It enables 3D printing using Computer Aided Design to recheck the quality of the physical product. So it can be evaluated and then moved on to the next step in the testing process. The essence of rapid prototyping services in China is about manufacturing products faster and at affordable rates. The techniques used in rapid prototyping include CNC machining or Computer Numerical control. Here the CAD software design is converted into numeric representation using a computer. This method is mostly used in metal manufacturing processes. SLS or Selective Laser Sintering is a technology that helps in the prototyping and manufacturing of three-dimensional parts, complicated geometries and shapes. SLA or Stereolithography works with ultraviolet laser rays. Both, SLA and SLS, use laser technology to build separate layers. The difference between SLS and SLA is below. In the case of the former, it is a powder that is used for fusion. And in case of the latter, it is a liquid resin that is used.Vacuum casting is used for making superior quality prototypes for clients where the mould is generally made from polyurethane and silicone. Fused Deposition Modelling or FDM uses melted plastic inside the nozzle of a printer for forming layers. It is easy to make and inexpensive though the finish and resolution is not of international quality. How does rapid prototyping services in China help? Prototyping is an essential step in the product formation process. The main concept behind making prototypes is that it helps designers, engineers, and businessmen in understanding the practical viability of their designs and blueprints. Since rapid prototyping is about 3D printing, it is more useful in understanding product features and performance before the production is undertaken. The prototype helps the concerned stakeholders in understanding if the final product is as per the intended design and use or not.With rapid prototyping services in China, it is easy to convince investors and clients about the feasibility of the end product, for the 3D image helps in better understanding and comprehension.
Choosing to work with a Chinese manufacturing company means that you need to be involved at every step. Here are a few important things for the buyers if they look for product development in China. A Specialized Prototype Designer Have a prototype developed by a company of a designer in China that specializes in making prototypes. Intellectual Property Rights It is advisable for product development in Chinato understand that when it comes to intellectual property rights for the development of a new product, Chinese manufacturers often think that they have the rights on the designs, the files, the molds – everything. This is one crucial aspect that potential buyers need to thoroughly ensure and have the same mentioned in writing to protect their ideas and designs. A Non-Disclosure Agreement or NDA is the best way to safeguard your brilliant product-related ideas from the competition. The buyer, the manufacturer and the agent, if there is one in between, need to sign the NDA together. Other Critical Issues After deciding the IP rights, it is also vital that the buyer and the seller agree on other critical issues like: Pricing – Negotiation is an important aspect of this. But buyers need to avoid falling for the lowest offers. Because the lower price does not certainly mean the best offer.Sample – insist on sample approval before the bulk production starts.Minimum order quantity or MOQ – This needs to be tactfully done. The seller will always try for higher MOQs while you, as the buyer would be happy with lower MOQ. An agreement needs to be drawn up on the ownership of the mold, the refund of the mold cost and the time estimated time for finishing preparing the mold. Verify the Certifications Check and authenticate the qualification of the supplier. In short, the buyer needs to cross-check and verify the certifications of the suppliers before signing on any contractual documents. ISO 9001, ISO 14001, BSCI, etc. are some of the mandatory certifications that a good quality supplier should have. Working with such manufacturers is a guarantee that the products will be standardized. More importantly, the buyer need to audit the processes thoroughly during production.
Great News! C2W & the charity we co-founded the CTC wins the 2019 China Social Impact Awards. C2W and the CTC won in the MNC category for Community & Culture. This award is given to the company that demonstrates the best work towards the following 3 United Nations’ Sustainable Development Goals: Goal 11: Sustainable Cities and CommunitiesGoal 16: Peace, Justice and Strong InstitutionsGoal 17: Partnership for the Goals The CTC Charitable Project The charitable project is called the CTC, the Come Together Community. The CTC is a local NGO opened and run in partnership with other foreign companies and stakeholders in Zhuhai, South China each year since 2011. It organises and brings together 1500+ people of all backgrounds and cultures in the community to enjoy music at South China’s largest charity music festival Come Together to raise money transparently for underprivileged children and those living with learning and developmental conditions in the region. The CTC is based out of C2W’s office, our staff run the financial, tax and administration of the NGO and many volunteer for management and other roles during the festival, year on year, with no salary or benefits. C2W Group CFO Mark Clayton, Founding Board Member of the CTC and Head of C2W’s Social Responsibility efforts was in Beijing for the Gala Awards Ceremony on Thursday 7th November 2019. Mark didn’t expect the win considering the quality of other finalists and dedicated the award to the entire team and wider community saying, “What an amazing achievement, people always say they’re surprised to win but I genuinely was, no speech prepared or anything. The award recognises the amazing work done by C2W employees, CTC partners and the wider community. I could not be more proud of everyone involved with the CTC project. Wow, it’s incredible.” The CTC is accepting corporate donations for this year’s 8th Annual Charity Music Festival, to be held in Zhuhai on Saturday December 7th, 100% of earnings are used in the local community to aid Children in Need as nobody takes any salary or admin fees. If you’re interested in donating or helping out in any way please contact firstname.lastname@example.org or email@example.com. Mark finished his acceptance speech by saying, “I stand before you a humbled man, when I look at the other finalists I didn’t think that what we do was big enough or worthy of winning this incredible award, but I guess that’s what this is all about, giving back and helping in any way we can, so we should all give back and help people, always and wherever we can.” In order to find out more about the 2019 China Social Impact Awards and the categories, you can see the following links: http://www.socialimpactawards.cn/about/ http://www.socialimpactawards.cn/about/awards-and-categories/#1526466101933-3c75da96-1fc2
Sourcing products from China is more advantageous than going in for local or domestic production, especially when its bulk or volume production. China is popular for economical pricing, flexible approach in customization of products, enable brands to diversify and expand more viably. Moreover, China manufacturing companies offer enhanced customer service with faster and prompter deliveries. Once you decide to find to the best wholesale suppliers in China, the question that needs to be smartly tackled is about how to go about the process. In order to find the best wholesale suppliers in China, international companies need to do the following Study in Detail about the suppliers Use online search engines like Google to look up a list of Chinese suppliers. In order to use the online resources to their optimal capacity, you would need to complete an exhaustive study. Some key points to remember are – Use specific keywords that are relevant to your niche and domain.Study in detail about the suppliers to filter them. It is essential to understand the various management and quality certifications these entities have in hand. Some of the internationally accepted standards are ISO 9001, ISO 14001, BSCI, etc. It is essential to read in detail the supplier website to understand what the services they offer. If the company is listed as a wholesale supplier in China or as a trading company? What is the specialization of the supplier? Does he conduct regular audits and checks internally? It is advisable to read through the TrustPass profile online to understand company-related information.It is also a good idea to review the product-specific pages of the supplier to understand his manufacturing and delivering capacities. Visit Different Exhibitions 2. The other option of finding the best wholesale supplier in China is by visiting different trade fairs, in China as well as international ones. These exhibitions provide ample opportunity to a potential buyer to comprehend the true manufacturing capabilities of the wholesale Chinese exhibitors here. Some of the popular exhibitions that you can consider being a part of are – the Canton Fair in Hong Kong, the Global Sources Trade Fair in Hong Kong, Intertextile Shanghai Home Textiles in Shanghai, and Centrestage in Hong Kong, etc.