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Nicki Jenns

HOW TO MANUFACTURE A PRODUCT IN CHINA

The manufacturing sector is one of the growing fields and China is one of the most leading manufactures in the world. China has carved out its niche in the manufacturing sector worldwide and is hugely popular among its audiences. Many youths are employed in this sector. If you want to make a career in this field, it is for sure that you have chosen a lucrative career option.


The competition is however, very stiff and you should know the ins and outs of this field. There are a lot of opportunities available for you in this industry since China has a long list of suppliers and logistic chain. Alternatively, China having a robust economy and market there is no dearth of opportunities and funds. Most of the companies in the west has started outsourcing manufacturing to China due to cheaper labor cost in China manufacturing. They hire manufacturing consultant to find private label manufacturers which provide OEM services and create product with their customer’s logo.


To import from China is a common practice for these companies nowadays and therefore China is also the largest exporter of goods in the world. There are a lot of websites, self-help groups and books that would tell you how to manufacture a product in China, and the pros and cons of the industry. Also with the rise of E-commerce business and the tools available for Amazon product sourcing, lots of entrepreneur start Amazon private label by having a factory in China to produce their own private label product.


China-US relations pertaining to the manufacturing sector

China had purchased more than $165 billion goods and services from the US in 2015. US on the other hand, US uses cars, trucks, semiconductors, construction equipment manufactured from China. To import from China to US is a common practice for lots of American brands who outsourcing to China for their entire production line. Goods manufactured from China have a very high demand in the US.


So, if you want to make a career in manufacturing with your base at China, you have most definitely chosen a lucrative path. Know how to manufacture a product in China to spread your roots in the manufacturing industry. Goods manufactured in China have a very high rating in the US market.


In fact, US is the third largest importer of the Chinese manufactured goods. The economy of both the countries is very conducive for the manufacturing business.

 

Be sure of what to want to manufacture

From clothes, fabrics, ceramics, hardware and pages, there are innumerable things that can be manufactured. Before you want to know how to manufacture a product in China, find out what you want to manufacture and why. The product that you want to manufacture does a detailed thorough research on it, whether it is a viable product and has adequate demand in the market.


You should also find out about the expenses that you have to spend on manufacturing of the product and an estimated profit that you can earn from it. Know about the infrastructure that you need to have to have in order to manufacture the product. Whether you have a competent team of workforce or not is also one of the essential things that you should keep in your mind.


Knowing the legality of the land

You have to be well versed with the laws of import and export before you venture into the business of manufacturing. You must avail the necessary permits and licenses. Also, know about the prohibitive articles or materials that you cannot manufacture or use in manufacturing.


You have to know the laws of the country if you want to manufacture a product in China. If you do not know the legalities you may land yourself with trouble. To avoid any discrepancy and ensure the smooth running of your business, develop your manufacturing business in accordance with the laws.


Build your network

If you want to know how to manufacture a product in China, first and foremost you have to build your own chain of networks that includes the supply, transport, design, logistic and negotiation team. Do a research on which the suppliers are in your chosen area of manufacturing. Sourcing product from China is sometimes done easily if you are working with a trustworthy sourcing company.


Make a list of all the suppliers and start communicating with them. Enquire about their tender and rates and know who the big and small suppliers are. Building relationship with them and furthering the communication process is very important. Being a manufacturer, you have to communicate with a global market. Thus, make sure that you have a translation software in handy. Any lapse in communication will disrupt your business.


Recognizing the economics is the main mantra

The amount of money that you would be investing for manufacturing a product, will it fetch you enough profits is very important. Also, are you equipped to handle the Minimum Order Quantities (MOQs) for every batch of thousand units?


Understanding the economics behind these is very important for you. Knowing the economics of buying and selling is also an essential factor of the business that you should be well versed with.


How does Production work in China?

It is very important the raw materials and hardware used in manufacturing whether is available locally in the market or not. If the hardware is easily available in China the production becomes all the easier.


Also, the cost incurred would be much less, indicating a higher margin of profits. One of the keys to How to manufacture a product in China is understanding the overall ballgame of economics and statistics. Keep in account the money spent on labor.


If more money is spent on labor, the retail price of the product will automatically go up. Chances are, the people will then be less inclines to buy the expensive products. The Chinese factories are a lot cheaper than the ones in the United States. Hence, if you set your manufacturing base in China, you will reap more profits.


Price should not be the only concern

This where most of people fail to understand when it comes to how to manufacture a product in China. They are looking only for the cheapest solution. As a matter of fact, you are creating a huge risk yourself by compromising the quality of your product.


Providing your clients with the sample of your products is a must. You may lose a few cents for it but you should not be bothered by it. On the contrary, it is a god way of maintain rapport with your clients. Most of the times, you will be tempted to quote an alarmingly low rate to rope in an important client. Do not do so.


Quoting an appropriate price is something that you should master in. You must learn to quote a reasonable price that is neither too low nor too high with ample scope of some profits. Maintaining a quality of your product is very essential. The quality should never be compromised upon.


Factory Visits are very crucial

The virtual world and the internet have certainly made your life easier. Face to face interaction however, has its own set of aura and charm. If you want to develop better communication channels and further your business plans, go for the old-fashioned face to face interaction. You should pay regular visit to your factories and ensure that the work is running smoothly.


When you pay visit to your factories, you can automatically keep a track on your workers. You may address the troubles much better and have a see-through experience of the goings on in your factory. Invite your clients to your factories as well. You may also invite your suppliers in your factory visits and discuss about the quality of the raw materials.


Maintaining a healthy relationship with the supplier and the manufacturer, the manufacturer and the client is very important. This way you can build better communication processes with your workers and clients simultaneously.


Participate in Trade Fairs

The various Import and Export Fairs organized throughout the year in the various cities and provinces will do you a world of good if you attend them. The Canton Fair for one, is one of the most prestigious trade fairs. Participating in the trade fairs will provide you new opportunities to connect with suppliers, whole- sale and retail buyers and exporters.


You would be exposed to new technology and competition. You would have a better idea about the competitors of your circuit. You will also know about the latest manufacturing trends in the local, regional and the national arena as well.


So, the next time you get an opportunity to take part in a trade fair, do not make a pass. You would have a lot to learn and experience that you would aid in your manufacturing business and endeavors.


Get your work done within the deadlines

More of than not you will see that most of your projects will get stuck at the initial R&D stage. This happens primarily because of unplanned work schedules or mismanagement. Getting your work done in time within the assigned deadlines is very important. 


You would be able to do it in time only if you have an efficient team of work-force and managers. Installing the right kind of modernized technology and equipment is also equally necessary in getting your work done in time. Like in every other industry, keeping up to the schedule is very crucial in the manufacturing business as well.


The Chinese manufacturing sector is a thriving industry where competition is very stiff. The opportunities present are equally high. The primary step in knowing how to manufacture a product in China, you should be skilled and competent enough to meet the deadlines.


There may be times when you have to keep up with long hours of work irrespective of day or night to get your work done within the assigned time. Aggressive deadlines you would see provide with the best of challenges. If you do your work in time, your clients would be much happier with you.