Your Ultimate Guide to Producing Products In China

Whether you like it or not, adversity is part of your life.

In fact, it might be one of the biggest roadblocks in your life.

To be frank, overcoming adversity sucks. It’s tiring, and it’s difficult. That being said, overcoming adversity is also a good thing. When you cope and move on from a tough situation, you build character and resilience. Every challenge you successfully confront opens up new doors and prepares you to better tackle future obstacles.

So, you might be thinking, “What does any of this have to do with manufacturing products in China?” Well, there are some roadblocks that you have to overcome to produce inventory in this part of the world. Luckily, if you are able to overcome them, you’ll experience a plethora of benefits, too.

Below, more information about the hurdles and benefits of Chinese manufacturing are presented.

Hurdles

A) Finding a Factory

One of the main struggles people face when they try to manufacture overseas is finding a factory. Many times, middlemen and trading companies pose as real factory suppliers. It can be difficult to differentiate between a factory and a third party.

Luckily, with Sourcify, this issue is negated. They offer an all-in-one platform that empowers business owners to connect with pre-vetted factories. Then, the entire production process is handled on their platform. Sign up for the Sourcify platform here for more information.

Another workaround for this issue is to find a supplier a search engine, like Google. If you go this route, remember that good trading companies and other middlemen often pose as factories online. You’ll need to spend extra time researching distributors to figure out what kind of companies they actually are.

B) Communication

Once you successfully find a factory in China, you can let out a sigh of relief. As soon as you do, you will, unfortunately, need to tackle another hurdle—communication. Communicating with a factory can be difficult for a variety of reasons.

First, English is a difficult language. Chances are your contact at the factory will have an elementary-level mastering of English. To avoid confusion, keep your writing short and simple.

Another interesting thing to keep in mind is that Chinese people are often very precise and literal. They don’t necessarily understand American humor or colloquialisms. To get your message across clearly, you’ll need to be very careful with the words you choose.

C) Shipping

Interestingly enough, many of China’s factories are in remote cities. The cost of shipping out of these areas can be quite high. By the time you ship goods from a factory to your warehouse and have paid all applicable fees to the U.S. government, you might be looking at a pretty high price tag.

Fortunately, the “landed cost” can help you understand if the extra shipping fees are worth your while. First, figure out how much production and shipping will cost domestically. Next, calculate the final cost of your goods if they come from China. Think about the product’s material cost, labor, shipping and governmental fees. With these figures in mind, you can analyze how much money you’re saving—or not saving—by manufacturing in China.

Benefits

As mentioned above, when you overcome adversity, you often benefit in some way. If you overcome the potential setbacks Chinese manufacturing presents, your hard work will pay off in more way than one.

A) Better Service

This might seem to be in direct opposition to the language barrier con above, but stick with this idea for a moment. Your contact at a factory will spend extra time to really listen to you and understand your needs. They won’t assume anything, and they’ll always work with you until you have a mutual understanding.

Additionally, most factory representatives are responsive. Even with a time difference, they respond—and quickly. If they need to get to your inquiry later, they will probably email you back and let you know that they’re working on your question and will have an answer soon.

B) Unrivaled Speed

Chinese factories are known for being fast and efficient. They are accustomed to putting out a lot of output in very short periods of time. One of the most fascinating stories about China’s lightning-fast manufacturing capabilities surfaced in 2015. An entrepreneur from Israel launched a crowdfunding campaign for a smartphone case that unfolds into a selfie stick.

One week after the campaign went live, the entrepreneur found that his product was for sale online. In less than a week, vendors saw his idea, copied it and were already making identical products—some that even had the same name as his smartphone case.

C) Quality

In the past, many products that bore the label “Made in China” were looked down on. These products were often cheap and inferior. Sometimes, they might have even reminded people of poor labor standards. Today, this convention is shifting.

Big-name electronic companies, such as Apple, Samsung and Nokia, manufacturer in China because their factories offer superior quality. Additionally, Chinese factory workers are now getting paid more than ever.

Overcome to Outcompete

As you start and grow a business, you’ll have good moments, and you’ll have bad moments. The truth is, running a business isn’t always fun. When you try to do one thing to better your company, you’ll probably find that multiple hurdles stand in your way.

This fact can scare you, or it can prepare you. Adversity is never welcome, but the more you expect it and learn from it, the more likely you’ll be to succeed when things get hard.

If you want to take your business to the next level by manufacturing in China, you have a long road ahead. Creating products overseas isn’t a cakewalk, but it’s not impossible, either. With the advice above, you can get started tackling the issues that often come hand-in-hand with Chinese manufacturing so you can eventually experience all of the benefits it has to offer.