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Reasons for Outsourcing Product Development to China

By Jesus David Cano Romano
September 12, 2016
Product Development to China


China has been a favorite destination for outsourcing product development for decades now. Technology has made outsourcing feasible for everyone and many companies from around the world are getting their product development done in the county due to its well-developed industrial base. Correspondingly, there is also a rise in the number of sourcing companies that are helping overseas businesses find suitable vendors, manufacturers, and auditors in China.

If you are in the product development business, here are a few reasons why you should outsource product development to China:

• High Quality Products: China has been a hub for product development for decades now. Its companies have been catering to numerous clients in the United States and European countries that demand high quality products. Consequently, they know how to deliver quality products

• Low Cost: One of the biggest reason for China’s rise as the leader in outsourcing product development is the availability of raw materials, services, and labor at a low cost. The price of product development in China will come at a fraction of the price it costs in other countries

• Skilled Labor: Availability of skilled labor at an affordable price is another major reason why western companies are opting for China for their product development. The country has one of the biggest segment of skilled, affordable and young workforce in the whole world

• Innovation: China has been doing the product development on behalf of companies from other countries for a long time. In this process, they have implemented innovative ideas, services, and technologies which are not easily available in other countries

• Risk-free Production Process: Chinese manufacturers have streamlined the process of product development to formulate a risk-free production process. They now develop a prototype based upon their client’s needs and test it in the real environment. Once the client is satisfied with the product quality, design, and performance, the product is sent for mass production. This helps mitigate any losses due to low quality or faulty products

• Private Labeling: Not only is it possible to get the product development outsourced to China, but private labeling can be done as well. If you plan to start selling a product without spending time, energy and money in developing it, you can look for manufacturers providing private label manufacturing solutions. They can take care of the packaging and logistics as well so your product is completely ready for business under your own brand name

• Availability of Sourcing Companies: It can be difficult to go to an entirely different country and look for vendors on your own. It is nice to have help from locals to get acquainted with the leading players in your field. It is even more convenient to have companies set it all up for you without you even having to visit the country. This is where sourcing companies come in the picture. There are many reputed sourcing companies in China, and you can get in touch with them for help. They will take care of everything from selecting vendors for raw materials and choosing manufacturers for your products to finding auditors for quality compliance and logistics partners for final product delivery.

It has never been easier to enter the Chinese market for product development. Outsourcing product development to China can help you mitigate losses, evade risks, lower the overall cost and free up your time to focus on the growth of your company.