Business: If you are a beginner and just want to start making private-label products in China, this process can be quite complicated. And you have the right to be! You give someone in China a large sum of money to make the product you want! So many things can go wrong! However, if you've done this a few times, you'll find that it's actually quite easy.
In this article, I will show you each process step by step- How to Manufacture Private Label Products in China 2022
Manufacturing your products in China is an efficient way to grow your business and increase your profit margins.
But the thing is, it's a huge challenge for many business owners who are worried about the process and aren't sure what questions they should ask beforehand and have to work through before getting started. Wherever you choose to manufacture your product, the manufacturing process is problematic.
However, you must be aware of potential challenges and preparation is the key to your business success. The GHL Sourcing team has first-hand experience with the challenges and concerns of manufacturing in China and how to manage them. This publication describes one of the most common concerns of business owners wishing to do business overseas. time scale.
Business Problems with Products Made in China.
What worries most people when outsourcing their production in the Far East? Recently, we have highlighted 4 factors in manufacturing outsourcing in China, but in our experience, quality and process lead time are the two most common offshoring issues. As a business owner, you can ask questions like:
- How long does my product development take?
- How long will it take to produce my product?
- How long will delivery of my product take?
All of these questions are very valuable and we encourage all of our customers to consider them. Production can be divided into three areas:
- Product development
- Production time
- Delivery time
Product Development
Proper sampling and prototyping periods are very important for product development. If you do it right, you save time and money. But how long does it take to prototype? This part of production can be done in a week or it can take years. It really depends on the product and the stage it is at.
If you think about companies like Nike and Dyson, it would take years, if not decades, for this phase of their production to pan out. However, time is not lost and your efforts will be rewarded with excellent and innovative products. So don't rush! Don't put artificial deadlines on a project unless you're ready to commit to a final product.
Product Manufacturing
We often hear stories of productions with a month-long backlog. Therefore, it is not surprising that it is a common problem in production relocation.
When the sampling and prototyping phases are complete, production time should not be an issue. A good manufacturer has a production plan and can therefore provide you with a realistic timescale for your product. Our production facilities in China use efficient production programs and can inform our customers of outstanding order quantities before their orders are executed and when they are executed.
Even if the factory has an efficient production plan, the only other reason for production delays is errors or uncontrollable events. A good example is in March 2017, when there was a national cardboard box shortage in China. The Chinese government started implementing environmental policies, and as a result, carton factories closed down.
One of our factories in Xiamen had a problem at that time. They can't order boxes at the right price to ship multiple containers of goods to customers. But instead of saying nothing or inflating the price the box charges the customer, our excellent communication channels allow the factory to tell us about the problem. We contacted our other factories and one in Hangzhou was able to help. The result is not causing order delays or price increases for customers.
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Shipping Goods From China
There are several ways to ship your products from China to the UK while exploring this release. Regardless of how they are shipped, shipping takes time.
If you use air transport, it is possible to get goods from China to England within 3 days, but you will have to pay a heavy price. The default service takes around 5 days, but there are also slower services that can take 10 to 14 days.
Shipping takes about 30 days on the water and an additional 3 days per side for loading and unloading. Sometimes in bad weather, there may be delays in loading, but most of the delays are due to the amount of cargo being transported through the ports.
It should be noted that delays may be longer if you use a smaller carrier and send an LCL shipment. In essence, it has to wait for space in the container.
If you also want your product to be offered at a competitive price, you should consider manufacturing overseas. For a more successful activity, you should do the following:
1. Make partnerships instead of treating Chinese agents as suppliers.
In the United States, companies tend to believe that Chinese manufacturers are companies that need to know exactly what to do. In fact, this manufacturer has been in business for years and knows how to do it right.
The main benefit for us is to use all the experience accumulated over the years. Treat them as partners, because they will ultimately benefit if you benefit from them.
2. You have to go there.
Business in China is very relationship based and you have to find out for yourself which environment your product is made of. At a factory Dalmia went to, there was migratory poultry and livestock, which she would not have known about if nothing had been done in China. Being there in person also allows you to catch mistakes.
3. Safeguard Your Intellectual Property.
Chinese companies are experts at copying what others are doing. To protect your intellectual property, you can help ensure that your supply chain is less dependent on partners. For the Fitness Cubed, this means electronic, plastic, and metal components from different manufacturers shipped to different locations to be assembled there. "No factory knows the final product, so it's impossible to replicate it," he said.
4. Do you have local Chinese contacts?
This will save you a lot of time working with someone who knows what a city has to offer, who can help you find different breweries and advise you on what to do next. Ask other American companies to find this person. UU you have specified with the Chinese manufacturer the people who will recommend them. “In our case, we have investors who make physical products and they introduce us to their contacts,” he said.
5. Expect A Few Months To Build Yourself Up.
If you are new to the Chinese market, it will take you seven or eight months to find the right partner you want to work with. In the first few months, you're asked to talk to a group of people and meet with different factories, and once you can decide who you should work with, you can spend three or four months making a product.
Statistics For Manufacturing Products In China
China, the world's leading exporter of production, exported 18 percent of its exports to the US last year. Currently, $34 billion worth of products is suiteforto Chinese duties of 25 percent, forcing some companies to expand production and production outside of China.
However, even if prices do not apply to the products sold, China still offers lower production costs and larger production capacity than other manufacturing industries under development.
China is undoubtedly the most important industrial producer and producer as it sells more industrial goods than any other country in the world. China is also a world leader in a wide variety of products. Especially when you want to create a custom product, you save a lot of time and money by working with a manufacturer that specializes in your product category.
Country Specialties
China is the world's largest exporting country, mainly because it specializes in many different product categories. No country can compete with China in terms of product availability. Apart from the technology sector, China can also master the following categories:
They can accept almost anything manufactured in Shenzhen, China, which is considered a manufacturing hub in Asia due to the increasing number of high-availability manufacturers and service providers. Logistics company Amazon FBA is also based here.
Most importantly, Shenzhen is the only mainland Chinese city that offers foreign visitors visas on arrival and integrates highly productive factories outside of Guangzhou in China. All these factors make Shenzhen one of the most accessible places for international companies and e-commerce companies.
Economic Progress
Although the WTO still views China as a developing country, its economy is currently one of the largest in the world. It is becoming more and more advanced and its technology and production capacity are advancing rapidly, forcing the country to undertake further reforms and economic projects such as Made in China 2025. Prosperity was very unequal before economic initiatives. which explains why. Factory worker wages are competitive in countries such as Vietnam.
Today, when the country started to upgrade some sectors of the economy and boosted the manufacturing sector, we saw an increase in wages. A raise isn't bad unless you're currently manufacturing in China and your profit margins are diminishing due to higher production costs. You can pay more for your production, but you can also see how the quality of your product improves. It also has the advantage of a stronger infrastructure, better-managed facilities, and state-of-the-art machinery that enhances the entire production process and supply chain.
In addition to wages, shipping costs after production must also be taken into account. Using FedEx International rates, we compared the shipping costs for sending three $30,000 boxes of clothing (1,000 units * $30 for each item) from various international airports in San Diego, California:
Shipping costs do not differ significantly from one Asian country to another, but the table shows the standard costs for shipping medium-sized production orders. As a company, you get better prices when you open an account and make more shipments over time. With more organized management across multiple factories in China, your manufacturer may even have their own shipping strategy, so you won't waste time looking at different shipping rates. You may spend less on transportation this way.
Taxes and other fees are not calculated on the transportation costs. Especially if you are shipping from China, it is important to consult the harmonized tariff system codes to check the tariffs for your imported products. Currently, $34 billion worth of goods is subject to US tariffs. Hispanics that import any of these products pay 25% more for transfers to that country.
Production Possibility In China
Most manufacturers in China require a minimum order quantity (MOQ). Setting up high-volume jobs offsets production costs for manufacturers, but the MOQ gets smaller as products become more complex. Products such as glassware or stuffed animals may have a minimum purchase of around 1,000 units, while more expensive and complex items such as hardware products may have a minimum purchase of approximately 200 to 500 units. As a new e-commerce company, it may not fit into your financial budget or produce so many units. However, a higher MOQ usually lowers the unit price.
A smaller manufacturer in China may be more willing to give you a lower MOQ than a larger manufacturer because they may not have as many companies and do not want to turn your factory away. If you choose to work with a small business, it's important to make sure that you can meet deadlines and product standards so you don't lose money on poor-quality production cycles.
The quality of production mainly depends on your source and choice of the factory. There are different types of shipping, each with its advantages and disadvantages, which make it better for your company than others. There are misconceptions about the quality of Chinese manufacturers, which do not correspond to reality. In such an important industry, the generalization of "poor quality" only affects a small number of factories, and most of them are probably frauds.
If you look beyond the hype, you will find that international buyers have turned to Chinese manufacturers for years and believe that product quality exceeds most and lives up to expectations. As the country also seeks to reform the sector and achieve a high level of quality in every product category, e-commerce companies can expect little, if any, of poor design. Product recalls can be very expensive. Knowing that the manufacturer can manufacture your product exactly to your specifications reduces risk.
The main reason why a buyer accepts an inferior product from a Chinese manufacturer is that he lowers it at a low price. "You get what you pay for" is very real when it comes to Chinese manufacturing. Be careful not to negotiate a price that is too low, as price reductions often lead to a similar reduction in the quality of the final product. If a manufacturer is not paid enough wages to cover the production cycle, he is obliged to make cuts that affect the design or production of his product.
How To Find Good Chinese Manufacturers For Your Products
China remains a popular place for the manufacturing activities of many companies around the world despite recent tariff and trade changes.
When looking for a manufacturer for the first time, it is also important to know what to look for in a manufacturer, and how to know where to look for a manufacturer. If what you're looking for is clearly specific to your industry or product, there are some universal features you can find with leading manufacturers. Below you will find important information to look for from your manufacturer.
Find manufacturers that produce similar products. Ideally, the manufacturer you choose specializes in your industry or product type. Some manufacturers offer almost everything, which means the quality may be low.
Find a manufacturer that has good reviews from individuals and companies that have used or used the manufacturer recently. Good reviews are essential to finding a reputable manufacturer. You need to get opinions from companies you know. The most obvious place is the person or company you recommend this manufacturer to.
Don't overlook the importance of searching for online verification. You'll also need to ask the manufacturer's bank for references as well as current and past customers.
Look for manufacturers that export mainly to the US or Western countries. These manufacturers tend to have higher quality standards and have shown that they live up to the expectations of Western importers. In addition, they are more familiar with compliance with Western standards such as product safety standards and labeling and packaging standards. You also have experience in international logistics product delivery.
Look for manufacturers who are prepared to provide you with company licenses, quality control system documentation, and other relevant certificates. These are things that well-known Chinese manufacturers generally do
willing to deliver to their potential customers.
What to include in your quote request:
Once you've reduced your list to a few manufacturers, you'll need to solicit a quote from each. A quote request is basically a quote to your manufacturing company, but the price is higher than the unit price. However, before you bid, you must obtain a valid nondisclosure agreement. Your nondisclosure agreement must be valid in China, which means you may need a local attorney to write You must protect your intellectual property by signing a confidentiality agreement before you submit product prototypes or specific product details to manufacturers. Your appointment must include:
Production Price: Of course, price is an important part of your quote request. Find out how prices change depending on order volume. You should also ask for a breakdown of the unit costs, which include product manufacture, shipping, price, and any other items included in the price by the manufacturer.
Minimum order quantity (MOQ): Each manufacturer determines a minimum order quantity. You need to know these requirements first, especially if they are a sticking point for you. Generally, the higher the number of units ordered, the lower the cost per unit.
Pricing samples: Before commissioning a manufacturer, you should sample your product to verify its quality. Sample prices vary widely, from discounts to normal production prices. Your sample price should be included in your quote request.
Manufacturing time: The time it takes to receive your order, including the manufacturing time (full order) and shipping time, must be specified in your quote request.
Payment Terms: All payment terms, including how and when the manufacturer expects payment, must be included in your request for a quote.
Request a sample:
You must accept bids from all manufacturers on your list. Request samples after reviewing requests and selecting a specific manufacturer (or partner). This should be done before signing a manufacturing contract and making a long-term commitment. Keep in mind that there may be minor differences between your pattern and the initial prototype. The proper functioning of your product may take several twists and turns.
This is an important part of the process of building a working relationship with your manufacturer. If you appoint a local representative as a quality inspector, you need to share samples with your inspector to ensure that future production will be of the same quality.
BEST AMAZON SELLER TOOLS| BEST AMAZON FBA SOFTWARE
SERVICE | PRICE* | FREE TRIAL? | |
|---|---|---|---|
Jungle Scouts | $49/mo | YES | OPEN THE WEBSITE |
Helium 10 | $37/mo | Yes | OPEN THE WEBSITE |
AMZSCOUT | $29/mo | YES | OPEN THE WEBSITE |
Seller | $19/mo | YES | OPEN THE WEBSITE |
AMASuite | $9.99/mo | NO | OPEN THE WEBSITE |
Feedback Five | $9.9/mo | YES | OPEN THE WEBSITE |
Conclusion: How to Produce Private Label Products in China in 2022
In this article, you will find out all the details needed to manufacture private-label products in China. You can check all these steps for a successful venture in the Chinese market. Let me know in the comments section below which section you liked the most and what you think of the Private label Product Launch if you are already in this space.
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