In recent years, there has been a surge in the number of companies relocating an existing supply chain from China to Vietnam. This is a result of a number of factors including Chinese wage rises, the US-China trade war and problems surrounding intellectual property protection. For a detailed comparison between China and Vietnam please view our ‘manufacturing in China vs. Vietnam’ blog. The current blog aims to discuss a number of costs you should consider before you commit to moving an existing supply chain from China to Vietnam. Wages and Labour costs China dominated the manufacturing scene for decades predominantly because of its low-cost advantage. Few countries could compete with these profitable values meaning that manufacturers from all over the world would consider China as the no-brainer choice. The basis of such low-costs were mainly due to low wages and labour costs. However, since 2011 China’s wages have increased by a hgue 60%. The result of this was that other countries, such as Vietnam, were able to compete with China’s costs because in 2019, Vietnam’s minimum monthly wages were sometimes half that of China. For example, the highest wage rates in Vietnam were in areas like Ho Chi Minh City at around $180 but due to varieation between regions, some areas were even as low as $125 per month. This is comparatively lower than the 2019 Chinese minimum wage rates. Stability of wage When looking at wage alone, Vietnam not only offers saving potential but also appears to offer a sense of stability in wages that China seems to be lacking. Comparing the rate of wage growth in Vietnam and China highlights the slow stabilisation of growth in Vietnam. Over the past three years Vietnam’s minimum wage rates have grown from 7.3% (2017), down to 6.5% (2018) and currently sit at a 5.3% increase in 2019. Although these rates still indicate an overall growth in wage they are indicative of more stable financial growth than China. China’s annual growth in minimum wage does also vary across regions however, generally this is at a far less stable rate. This is important to consider in terms of wage costs. Importation Costs A key misconception in the transferal from China to Vietnam is that this offers a level of security and protection from the ongoing US-China trade deal. As Vietnam continues to rely on Chinese imports for key components it is likely that it will be indirectly affected by the US-China trade war. Therefore, the trade war should not be the only factor driving your ambition to move existing supply chains from China to Vietnam. The cost of importation will no doubt increase the cost of your items per unit. Vietnam relies on and extensive number of importations from China including core materials and it has been suggested that 70-80% of the fabrics used in Vietnam’s clothing industry are imported with the majority of these imports coming directly from China. Get in touch or visit our website for more information about how we work within low-cost South-East Asian regions. Machinery Vietnam’s manufacturing industry is far less mature than that of China and consequently, lack quality in areas such as machinery. This may mean working with facilities with poor machinery and tools or a reliance on paying for importation of machinery. China 2 West has a regional office in Ho Chi Minh resulting in reliable communications and personal links in Vietnam. If you choose to work with China 2 West in Vietnam then you can rely on good quality facilities and workers. Quality Control Due to different standards of inspection, quality control in South-East Asia can often lack in…well…quality! However, C2W’s western owned and managed offices means that all of our offices believe in western standards of quality, service and inspection. For more information check out our quality control services page. Relocation Discussing the cost of relocation is a difficult topic as it will vary significantly depending on a number of factors unique to your company. For instance, if you were to find an identical manufacturer in Vietnam offering the same machinery and materials as your current manufacturer, then relocation costs would be significantly less than that of a company seeking to relocate these components. Some companies may even wish to send specific skilled works to Vietnam to continue business. You should have a detailed and extensive list of the types of relocation you may wish to do and be sure to consider all costs when making a final decision to relocate from China to Vietnam. China 2 West can help you in this process and offer a huge amount of services. Check out our ‘Services’ page to see the wide range of services we provide and how we can be of assistance in supply chain management, fulfilment processes or sourcing in Vietnam. Facility development A similar argument is true for facility development costs in Vietnam. Details and specifications regarding the necessary development of your business will largely impact costs. You should also consider the future of your business and the likelihood of future development. It would result in larger costs in the long-term to relocate for a second time in the future if your business grew and required a new facility rather than relocating to a facility which could handle the future development and growth of your business. Conclusions -Moving an existing supply chain from China to Vietnam can have a number of benefits including a reduction in costs in a number of areas. -It is important to consider the specific requirements of your move to know whether relocation would be fincancially beneficial. -C2W work in a number of locations outside of China. To discuss moving an existing supply chain from China to Vietnam you can contact us directly or visit our website. Please note this information was sourced and written with the aim to inform. C2W does not take responsibility as to its accuracy, completeness or correctness.
Why is it important to consider the environment in your production? The importance of going green in business becomes increasingly important as the effects of global warming worsen and as the general public become more concentrated on green efforts. These ideologies have had a huge impact on consumer choices and the materials manufacturers use in production. Staying competative and offering a new selling point One of the biggest luxury fashion brands has already jumped ahead of competition as Prada became the first luxury brand to sign a sustainability deal. Similarly, Waitrose became one of the first supermarkets to trial package-free food products in an attempt to reduce plastic waste. These are just two examples of leading brands responding to consumer demands for more environmentally conscious products. In 2019, the world witnessed THE largest climate strike ever recorded in history which placed a huge social pressure on governments and manufacturers to take notice. As all manufacturers and businesses are aware, it is the next generation of consumers that shape the future of production. Their specific demands and preferences shape the world of manufacturing indicating that meeting the latest market trends is essential to successful and competitive business. The inevitable collapse of businesses if facilities fail to go green Additionally, without making environmentally conscious decisions in manufacturing there will be catastrophic consequences for many businesses. The locations around the world where cheap manufacturing occurs will eventually become even more inhabitable and result in business bankrupsy. For instance, China already has extremely high pollution in the air resutling in people wearing masks and checking the pollution forecast. This behaviour has been normalised just as people may check the weather in the West. This is Similar to New Deli, India, which declared a public health crisis just two days ago due to the alarming level of pollution in the air. This is 20 times higher than the level that the World Health Organization (WHO) considers ‘safe’. Businesses will collapse if their workforce become too ill to work and begin to evacuate the affected areas. This will have relay effects on world trade. Not only will facilities be forced to close but demand will be even lower as consumers will most likely put even more pressure on renewable energy sources and become loyal to brands that adapted to meet this demand. Therefore, it is critical for businesses to be ahead of the game on the environmental front. Luckily enough, there is still plenty that you can do in order to reduce your personal contribution to the environmental crisis. This blog will discuss top tips for going green in business and offer a new selling point to a new pool of consumers. Packaging An extremely useful and effective way to make your manufacturing more environmentally conscious and thus, more attractive to this pool of consumers, is by tackling packaging. This can be done in several simple ways. Compostable packaging The word compostable is extremely popular in the eco-world. Compostable refers to an organic substance which decays naturally. Often these items are made from all-natural ingredients such as corn starch. Using compostable packaging contributes to reducing the waste your business creates and contributes to a zero-waste effect. If you can choose a packaging that is compostable then this will put you in good stead for success. For example, instead of using plastic bubble wrap or Styrofoam you could opt for a compostable version. An example of this is corn starch peanuts, as shown in Figure 1, which are usually made from plastic. When consumers receive the compostable packaging they can just burry them in their garden or put them on a compost pile and let mother nature do her job. There is quite literally zero impact on the earth with compostable packaging. China 2 west work extremely flexibly and would be willing to discuss your individual requirements for more environmentally conscious packaging. Figure 1: Image showing corn starch peanuts used as a replacement for plastic packaging Recylable/Recycled packaging Using recyclable packaging (such as paper or cardboard) instead of non-recyclable plastic packaging is also an extremely effective option. This is especially effective if you use paper that’s already been recyled. Naked products Another key to success is to reduce all unnecessary packing from your product if possible. ‘Naked’ products have no packaging at all and have grown increasingly popular. Not only is over-packaging discouraged, it also saves you time and money in the assembly process. China 2 west consider ourselves as experts in printing and packaging so get in contact with us today to discuss your individual requirements for more environmentally conscious packaging. A great exmaple of recyled packaging for going green in business. Zero waste and Zero Plastic Two extremely common principles among environmentally friendly products is ‘zero plastic’ or ‘zero waste’. The two mean different things and you can tackle both individually. Zero Plastic Plastic use in production and manufacturing is extremely harmful because it does not break down, ever! It is estimated that every piece of plastic that was ever made still exists today somewhere in the world due to the longevity of its life. Unfortunately, some products claiming to be ‘biodegradable’ only break down into smaller pieces of plastic, called micro plastics, and are still a huge threat to the environment. Plastic, therefore, can never truly biodegrade and it never ceases to exist. This is an extremely worrying fact when you begin to consider the statistic that 33% of all plastic produced is single use. You could simply avoid using any type of plastic in any part of your product, packaging or fulfilment processes. This would be a great start. Where possible, swapping your materials from plastic to reusable, recyclable or sustainable options will create a more environmentally conscious product. This swap shows consumers that you are concerned about not leaving a lasting negative effect on the planet even after your item is no longer in use. Such materials that could be used as a replacement of plastic include: glass, starch-based polymers and some metals. Environmentally conscious versions of Sellotape also exist, such as water-activated tape or compostable rope. This too will remove the amount of plastic your packaging uses. Zero Waste Conversely, you could go for a zero-waste approach which essentially refers to responsible production and takes on many forms. The concept is that all processes should be considerate of the environment, cause no harm to the environment and have the capacity to be reused, repaired, rebuilt, refurbished, refinished, resold, recycled or composted. This could include removing all unnecessary parts of a product, its packaging or its delivery materials so that there is no part of the product that cannot be reused. Zero waste approaches also place a huge emphasis on compostable items, meaning that they simply cease to exist after decomposing. Industries in which this is particularly useful are in cleaning products such as kitchen sponges, as they can be buried in the garden or placed into a compost heap after use. Reusable items that last a lifetime are also considered zero waste. Can’t ligitimately say bye to plastic packaging? If you absolutely cannot say goodbye to plastic in your production or fulfilment processes, then you should consider using recycled plastics. This could mean reusing old plastics, using plastic that has been collected from landfill or plastic bottles removed from the ocean. These plastics can then be cleaned and transformed into brand new plastics for your use. Two extremely popular cleaning brands which do this are Ecover and Method. Taking plastics out of the ocean is of particular importance because it is ingested by the sea life, birds and cattle we later eat ourselves. And you know what they say, “you are what you eat”. And in this case, that’s plastic. Although it is extremely important to clean up the waste we have in landfills and waters, it is also important to ‘turn off the tap’. Therefore, by using plastics which already exist you are not adding to the current amount in landfill and the ocean thus, helping turn off the tap. The plastic Bank by David Katz The plastic bank was founded by David Katz on the premise that plastic becomes an asset when value is added to it, and materials like diamonds become worthless when you remove the value. In his mission he has turned ocean plastic into a currency which can be used in the poorest countries in order to tackle ocean pollution and poverty. Image of one of the plastic bank drop points and the local community it helps. The plastic bank has operatives in Hati, the Philippines and Bali, Indonesia and creates a social organisation in which locals can collect plastic waste and exchange it for currency. This currency can then be put into a bank account, turning it into an asset which can be borrowed against. As for the plastic itself, this is sold to companies to reuse for their manufacturing and production. Since its founding in 2013, the Plastic Bank has recovered and recycled over 6.25 million Kg of ocean bound plastic and improved the lives of over 4200 families living in poverty. How can this help my business go green? You could become a supporter or a customer of the Plastic Bank in order to improve your company’s impact on the environment. The Plastic Bank could also be an extremely good investment opportunity for your company. Being involved with the Plastic Bank would have a huge number of benefits for your business. Not only would this highlight how you stand out from competitors, it would also engage customers in this topic and increase public awareness of such schemes. This would also act as a new selling point for your product which would be attractive to a new pool of consumers and it would reflect your company’s involvement in innovation and the latest advances in the market. Introduce a recyling scheme A great way to encourage loyalty within your customers is to introduce a recycling scheme with your product’s packaging. This is also a great option if you do not see a profitable way for you to change the current materials used to package your product. A well-known and extremely popular example of this is Lush, who’s pots are made from a mixture of bought recycled plastics or their own recycled pots. When customers return a certain number of used pots in-store, these pots are used again and the customer receives one free item. Image of an extremely popular packaging recyling scheme used by Lush. You could introduce a similar loyalty scheme which offers some sort of benefit to the consumer for returning used packaging. Recycling schemes not only encourage recycling and prevents waste from going to landfill, it also saves you the money and time because there’s no need to produce more containers for your product. Recycling loyalty schemes will also engage customers meaning they would be more likely to be loyal to your product and feel like a more active participant in your brand. These types of schemes also have a huge range of flexibility to suit your company. After all, it is you making the rules. For example, you can control the conditions of your recycling scheme such as not allowing returns under X number of items and you could change what sort of reward you offer. For example, instead of providing a free item you could provide a discount code, an exclusive offer or some loyalty points towards their next purchase. Going green with China 2 West We hope that China 2 West’s 14 years of experience and ability to work flexibly put your mind at ease when considering whether we are able to meet a client’s environmentally conscious demands. Get in touch with our team to discuss our ability to meet your green demands. Date written (may differ from date published): 18/11/2019
Why is it important to be more environmentally conscious? The importance of environmentally conscious business becomes increasingly important as the effects of global warming worsen and as the general public become more concentrated on green efforts. These ideologies have had a huge impact on consumer choices and the moral standards they hold companies against. Two examples of leading brands responding to consumer demands for more environmentally conscious products include Prada and Waitrose. These have been extremely successful in improving popularity and meeting standards placed upon businesses to act mindfully in the current climate crisis. Not making environmentally conscious decisions can also have catastrophic consequences for many businesses. The locations in which cheap manufacturing is extremely common, such as China and India, are already facing the consequences of pollution. For instance, New Deli, India declared a public health crisis just two days ago due to the alarming level of pollution in the air. This is 20 times higher than the level that the World Health Organization (WHO) considers ‘safe’. If businesses fail to become more environmentally conscious, they may witness the downfall of their company due to workers becoming too ill for work and a severe decline in popularity. Albeit worrying, there are a number of ways businesses can act more environmentally conscious. Such behaviours will reduce personal contributions to the environmental crisis and prove to consumers that your brand is responding to public opinions. Carbon emissions Proving to your customers that you are trying to reduce carbon emissions in any stage of the process is possibly one of the most powerful moves you could make when attempting to be more environmentally conscious. This is true for both production and fulfilment processes. Reducing carbon emissions is a very important feature in this ever-growing pool of consumers as it is considered to be the fault of burning fossil fuels that contributes to global warming and thus, climate change. USPS Postal Service using electric delivery cars Short Term To reduce carbon emissions in the short-term you can act in a similar way as USPS in California.USPS introduced electrical vehicles used within their delivery and fulfilment processes. This would immediately reduce the carbon emissions caused by your company and highlight environmental efforts to consumers. Long Term changes Conversely, you could attempt to reduce factory emissions in a number of ways. Suggestions include: setting and meeting targets to reduce carbon emissions, becoming carbon-neutral or make a switch to use renewable energies. A great place to start could be switching your energy provider to companies like Bulb or Octopus, who provide renewable energies. These changes may take a longer time. However, the benefits on the environment, in preparing your company for future demand and in consolidating consumer loyalty, will make the changes worth it. Start a tree-planting initiative Closely related to reducing carbon emissions is tree planting initiatives. This could be an effective way to engage your customers with your brand and increase customer loyalty. Planting trees is also a great initiative to gain publicity when your company meets certain milestones. To give you a rough idea of how popular tree planting initiatives are: one recent movement among YouTube influencers, with the aim of planting 20,000,000 trees using drones, gained 8.3 million views in just 3 weeks. Your business could commit to similar initiatives. For instance: if you sell X number of products you may promise to plant X number of trees or pay X amount of money to a charity that plants trees. This would gain a lot of media coverage in promoting your business’s environmental efforts. Image of a subset of those working with One Tree Planted Chartiy Organisation Not only does planting trees reduce the amount of carbon dioxide in the air that we breath, but in the long term it will replenish the natural habitats for wildlife suffering the destruction of their homes. Most recently, koalas have faced the harrowing effects of bush fires in Australia. Therefore, tree planting is an extremely positive message to be giving your environmentally conscious customers. Donate to environmentally-conscious charities Another way in which you can be more environmentally conscious as a business is to make donations to environmentally conscious charities. Great examples include charities that work to: clean the oceans, plant trees, help endangered animals, reduce plastic waste, invest in renewable energies or educate people about the threats of climate change. Ocean Conservancy work to protect the ocean from environemntal challenges and create science-based solutions for a healthy ocean and wildlife. Use sustainable materials A sustainable materials are essentially those which can be used time and time again without compromising its future existence or having any damaging effects on the environment.For instance, natural woods are particularly positive materials if they are not treated with any chemicals. This is because this will mean it can be composted after use with zero negative impact on the environment. Bamboo The sustainable material people often think of is bamboo. Bamboo is sustainable because it grows back quickly and has a short life span meaning that its growth and harvest does little harm to the environment. Conversely, exploiting some tree types can have devastating effects on the environment and contribute to deforestation because they may take so long to grow back. It’s not news that the world’s forests produce the very oxygen we breath and after the social despair over the amazon fires in 2019, sustainable wood could be an incredibly important material to incorporate in your production. Cotton Many manufacturers also think of cotton when sustainable materials are discussed. This is because organic cotton is a completely natural, compostable fibre and it does not use harsh chemicals for fertilisation. This has positive impacts on the environment because the chemicals do not leak into the nearby rivers and soil etc. Therefore, organic cotton would be an extremely good option for sustainable and environmentally conscious fashion products. However, cotton farming can also be extremely detrimental to the environment if it is not done properly. Cotton must be completely organic to preserve its positive usefulness. You can find more information about cotton here. Other examples of sustainable materials include cork and reclaimed wood and metal. Make team bonding excercises more positive for the environment A great way to get your company more environmentally conscious is to replace team bonding or company events with more environmentally positive activities. For instance, instead of individuals driving to a location far away, you could get a company coach or take the train. Activities such as making eco bricks, planting trees or doing a hike could also get a team more in touch with nature and have positive effects on the environment. The public are likely to applaud such efforts compared to more materialistic events. Boycotting palm oil or committing to sustainable palm oil Palm oil is an extremely controversial topic because it not only contributes to the deforestation of rainforests, but it also destroys the habitats of many endangered species. The most high-profile animal losing its home to palm oil farming is the orangutan. These animals are often shot by the farmers tearing down trees to make more space for plantations. If the animal isn’t killed, it may continue to live a life either blind or injured. These circumstances make it vulnerable, unable to forage food or defend itself. Other at-risk animals include rhinos, tigers and elephants. You could choose to boycott palm oil. However, this substance is in almost every type of product meaning this is extremely hard. An alternative is to use companies with ethical and sustainable farming methods. Soy oil is also an extremely controversial ingredient. By using sustainable components, you are proving that your company values the importance of the rainforests and does not contribute to unsustainable methods of farming. How China 2 West can help you become more environmentally conscious We hope that C2W’s 14 years of experience puts your mind at ease when considering whether we are able to meet a client’s environmentally conscious demands. Get in touch with our team to discuss your individual demands. Please note that the information provided in this blog is sourced and written with the aim to inform and inspire. C2W does not take responsibility as to its accuracy, completeness or correctness.
What is a 3PL Company? A third party logistics (3PL) provider, such as C2W, offer outsourced management over one or more procurement and fulfilment activities. Procurement activities simply involve acquiring or selecting goods and services required for your specific job. On the other hand, fulfilment activities refer to the process of distribution and shipping. Third party logistics providers deal with the physical movement of your goods from point A to B, as well as providing other services involved in the process (such as warehousing). What are the benefits of using a 3PL Company? Lower cost The top benefit of using a 3PL company is monetary savings! Using a 3PL company removes the financial pressures of warehouse storage. By asking us to do this for you, it means you only pay for the service package itself and can pick and choose when you use these services.Using a 3PL provider also means you can make larger orders and store extra product more cheaply. Customer Satisfaction In this technological era, good online service is largely linked to efficient delivery. Online shopping is becoming increasingly popular as the high street dies meaning that your fulfilment processes will undoubtedly be a metric used for measuring customer satisfaction. Using a 3PL provider means your e-commerce business can gain significant customer loyalty and satisfaction by letting the professionals deal with delivery. C2W can even sort direct shipping to end customers, a process held against western standards of communication and service. Our experience Due to our expertise and experience in 3PL services at C2W, efforts in e-commerce procurement and fulfilment activities will be more time and cost-effective than less mature manufacturing companies. We have a verified history of successfully meeting demand and are able to scale operations consistently and smoothly. C2W remove the stress of such demands so that you can focus on the things that matter such as improving and growing your online business. Supply Chain Management C2W analyse the supply chain and define any flaws, enabling us to provide efficient solutions and improvement to e-commerce efficiency of your business. Our oversight gives you a better visibility of what’s going on in your business, which can be at times be lacking in long distance professional relationships. Direct Business Hiring a 3PL company cuts out the middle man so that you can do business more directly and have one point of contact. C2W handle a broad spectrum of services meaning that you don’t have to hire a freight forwarder in the process (who don’t actually deal with shipment or fulfilment themselves). And as all businessmen know, direct business is straight talking business! Accountability When acting as your 3PL provider, C2W takes direct responsibility for your goods or services. You can be assured to receive reliable services and be sure that C2W will take accountability. Unlike a freight forwarder who acts as an intermediary player in the chain, we are held directly accountable. Examples of the third party logistics services C2W offer: Receive all incoming products and collect inventory dataManage full inventory in the US using our professional WMS (Warehouse Management System; SkuVault)Drop-shipments for all orders (pick and pack)Quality control For an extensive list, visit our website here for China or here for the US. Contact us for an accurate quote based on your project or to ask any questions.
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.
This blog will discuss what a private label product is, how to find your newest third-party manufacturer and why China 2 West is the best choice. For more information please also read our other blog: ‘What are the advantages of having a private label product?’ What is a Private label product? This is a product made for a company by a third-party manufacturer retailed under the company’s brand name. China 2 West would work flexibly as your the third-party manufacturer to meet specific requirements. What does a good third-party manufacturer look like? (1)Expertise It is important to be offering consumers a high-quality private label product so that it is competitive with the current market. Luckily for you, China 2 West are experts in a range of areas. This includes stamping, electronics, printing and packaging. For a full list of our expertise visit our ‘Expertise’ page. (2)Competitive pricing Here at China 2 West we take an extremely flexible approach to business and are able to offer customised buisiness to suit your personal needs and requirements. Get in touch for an accurate quote based on your project. (3)Evidence of success It’s always crucial to check a provider’s reviews and feedback. Our 6,000 completed projects and 14 years of experience means you can be confident in our success. Contact us! For more details on our services, you can visit this page. You may also find this webpage useful in your decision.
What is IP and why is it important to protect it? IP stands for Intellectual Property and China 2 West ensure that this is protected at all costs. This blog will explain why intellectual property protection is so important and how C2W works to protect your goods and services from copy-cats. It’s no secret that the key concern about business in China is the thought that their intellectual property will be stolen.A famous example of this is Ford’s lawsuit against the Chinese manufacturer JAC in 2012. More informaiton about this lawsuit you can visit here. China 2 West are a company managed by British directors meaning that we are committed to protecting every aspect of your IP. You no longer have to worry about the risk of copy-cat manufacturing. How does IP law work in China? In China, a company has no formal intellectual property protection if it does not file its copyrights, patents and trademarks.A patent is legal document that protects an individual’s invention. A patent allows you to take legal action against any person who uses your invention without permission. It is also important to know that there are multiple types of patents. How does China 2 West protect its clients’ IP? We provide our clients with direct advice and intellectual property protection services. We do this by partnering with Innopat, who are a leading IP industry expert based in Zhuhai. More about Innopat Innopat is a leading patent and trademark agency. This is as authorized by the National Intellectual Property Administration of the People’s Republic of China.Innopat are dedicated to the specialized practice of intellectual property law including: patent, trademark and copyright law. intellectual property protection represented with a padlock For more information, contact us or visit our website here.
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.