If you’re looking to expand your product line, the last thing you want is to over-invest in a low-quality product. The best way to anticipate the success of a new product line is to have working knowledge of how to partner with Chinese manufacturers.
Companies that are successful with Chinese partnerships always have a strong game plan. Sure, some of these strategies are more elaborate than others, and there are certainly many things that affect the process. But in the end, if you want to be more successful in importing from China, you need to develop a strategy on how to choose a Chinese manufacturer.
Here’s what you need to know about expanding your product line by partnering with a Chinese manufacturer.
What’s great about using business-to-business platforms is that they allow buyers to easily find suppliers. They also typically have third-party services that rate each vendor’s reputation. You can feel safe knowing that you’ve found serious suppliers there.
The two main Chinese B2B platforms for foreign companies are Alibaba and DHgate. Alibaba is one of the largest internet businesses in China, thanks to its 8 million vendors.
The RFQ, or Request for Quote, is essentially a formal business letter that you’ll send before partnering with Chinese manufacturers. It allows you to communicate exactly what kind of product you’re looking for. By writing an effective RFQ, you’ll be able to get quotes from suppliers with more specificity and accuracy than ever before.
The first thing you’ll want to do is write out all the details. When putting together your RFQ, consider including product specifications like:
This will ensure that no matter who you send the RFQ to, their quote will be tailored towards the product that you need.
Next, include a description of how the manufacturer can expect to receive payment once they’ve delivered their part of the deal. This could include international wire transfers or even PayPal.
Last but not least, don’t forget about shipping costs. You should ask them whether they can provide packaging materials. You can also ask for suggestions on how best to ship their products overseas since that’s what they do.
Having a solid contract greatly reduces the risk of having an unsatisfactory final product delivered. It also lowers your chances of doing business with unscrupulous factory owners.
You’ll have control over the production process. Contracts ensure the manufacturer will deliver exactly what you want on time and at the agreed-upon price.
A great contract doesn’t just help you avoid headaches. It also builds trust between you and your manufacturer, which can lead to better collaboration down the road.
Ideally, you want to be able to get a signed contract that states the manufacturer agrees not to steal your intellectual property. You also want to request that they only copy your product within the specific parameters described in this document.
Make sure that you have a lawyer who can look over any contract before you sign and make sure it has been written correctly.
Because of China’s long history of manufacturing, they have the necessary infrastructure to produce your product in a cost-effective way. But there are more benefits to choosing a manufacturer in China than lower prices.
In China, manufacturers typically have better workflows, great labor productivity, and more automation. Clients will receive their products quickly. Plus, they’ll completely match the design specifications more often than not.
This reduces the downtime that comes with needing products modified because they aren’t what you asked for.
Consumers are more conscious than ever about the products they buy. And they’re using the internet to hold companies accountable for their actions.
That’s why social and environmental responsibility is essential to Chinese manufacturing teams. You can find suppliers who meet international compliance standards without much trouble.
People who make original equipment are called OEMs. This type of product is made for one person or one line of products. In other words, you can get a product made specifically for your needs. This can be incredibly useful for companies who want their own unique designs.
Compared to other leading manufacturing hubs, China’s massive supply chain of vendors means that changes in your production process can be implemented much faster than anywhere else. This allows you to more quickly test out new ideas and scale up the ones that prove most successful.
In addition, most Chinese manufacturers do not require buyers to purchase a high number of products at one time. Many startups and small businesses can now afford to source products so they can start growing their capital for expansion.
No matter what you’re looking for, from fresh produce to a new hard drive to shot glasses printed with your face on them, Chinese manufacturers can help you. The country has the largest skilled labor force and the best manufacturing technology in the world. Having a high-functioning supply chain is necessary for keeping costs down and ensuring that your products are delivered in a timely manner.
If you’re trying to figure out how to partner with Chinese manufacturers, there’s no better place than China 2 West. They have an extensive network of suppliers waiting to fulfill your orders. Get in touch with them today.
Experienced and new entrepreneurs are constantly looking for the best manufacturers for their products. Though many businesses still choose to produce in the United States, Chinese manufacturing has advantages that the US may not necessarily have. Finding the appropriate manufacturer is not a one step process; instead, several steps have to be taken to find the perfect fit. Five important tips for manufacturing in China are listed below:
Contact us for more information on partnering with ITI Manufacturing!