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Benefits of Sourcing Products from China

Producing products from China is an industry that is widely recognized as a valuable asset for international businesses looking to lower costs. Numerous brands have made this a regular practice, making Chinese manufacturing an integral part of their success. It is advantageous for product sourcing businesses to source diverse products from China because of the low labor costs.
Over the past few decades, many small and mid-sized businesses as well as some of the top brands have come to understand the importance and benefits of sourcing products from China. China was responsible for approximately 28% global vehicle production in 2019. China has been the destination of many other industries seeking reliable Original Equipment Manufacturers.

If done correctly, buying products from Chinese suppliers can help increase your profit margin, lower labor cost, and ensure continuous supply throughout the entire year. You will still find a lot misinformation and myths. Some people claim you won’t find high quality products made in China. However, it is possible to source high-quality products made in China.

We are experts on the Chinese market and can help.

China can help you change your mind.
The Growing Chinese Economy

China has been ranked as the 2nd-largest economic country in the world. It is the world’s largest manufacturing country and has proven its worth recently. It has been voted the most influential country in manufacturing for two consecutive years. The country’s economy has been growing rapidly and sourcing the goods can prove to be a beneficial step for business owners. To thrive in China, international companies often identify the Chinese agent as a sourcing agent. Chinese sourcing agents like us can provide the products you need if you are still in search of ideal suppliers.

Low cost country sourcing benefits – Speed

The speed of new trends has been accelerated by the internet and e-commerce. Also, the rate at the which products are copied has increased. E-commerce has made speed to market a more important priority. China’s integrated supply chains offer a significant advantage for fast-tracking supply chain.

Its production ecosystems have a difficult-to-match concentration in input suppliers, assembly factories and skilled workers. These are all available on a massive scale and can be used to produce a wide range low-tech or mid-tech as well as high-tech products.

According to a report from the European Commission, China contributes 76% (close enough to the EU’s 89%), which shows how little it rely on imported inputs. This is why production of goods that require several components, like electrical ones, has largely remained within China.

Expansive Supplier Base

The vast network of Chinese suppliers that Western companies have access to is a huge advantage for them. This is why so many of the most successful companies in today’s world import electronic, textile, and other products.

Working with a company providing China sourcing services is a great idea, as you have access to a large supplier network at your disposal. Companies such as these have years of cultural and business knowledge to help them import products from around the world. We can help you.

How to reduce the risk

It is important to have a well-managed sourcing strategy that minimizes the risks of purchasing products from China. Source products from China directly means that you will be involved in each step. This will enable your to detect fraud, undue profits, untimely deliveries and other issues early so that you can address them quickly.

Cost-Value

Other considerations may become more important but finding good value for a reasonable price remains a priority. China is in a position where quality and productivity gains outweigh rising labour and property costs.

China’s rise in productivity can be attributed to the rapid pace of automation. According to a Boston Consulting Group study, US carmakers deployed three-times the amount of industrial robots in China than they did in America. China however reached parity in five short years.

Greater Scaling Capabilities

China’s infrastructure is solid and well-developed. Chinese manufacturers also have years-long experience and deep knowledge in global supply chains management. These two factors enable them scale-up manufacturing when needed.

You can easily increase the number of sourcing products you have by as much as a few hundred to more than a thousand in just a few weeks or days. However, it is important to note that scaling up depends on the product and the availability raw materials.

Most manufacturers do away with the requirement that buyers spend a lot on Minimum Order Quantity (MOQ). MOQ can be purchased at a significantly lower price, allowing small businesses and startups to source products in small quantities.

You can however scale up as your company grows. For a startup looking to establish a brand, China manufacturing is the best option.

Freedom to Choose Desirable factory

If you select local suppliers, you won’t be able to verify the working conditions. It is enough to inform your supplier about the particular product. You’ll get the product you need if they are able to meet your expectations. Chinese product sourcing allows you to visit factories in person to inspect their working conditions. You can also select from a range of factories and discuss any requirements. You can therefore choose the correct products and the factories that manufacture them when you source the products direct from China.

China: Sourcing for Sustainability

With the growing demand from consumers for ethically-made goods and the internet’s ability to quickly ruin a brand reputation, social and environment responsibility are becoming a top priority for sourcing groups (see our page about China’s tax and accounting service).

China’s export industry is mature, making it easy to find inspector agencies and suppliers that can meet international compliance standards.

Direct Sourcing

In order to outsource, buyers must deal with several parties called middlemen. This results in increased delays and higher sourcing cost. But, if you are looking to source products from China, it is possible to directly deal with them.

China’s OEM industry is highly competitive. Most manufacturers prefer to deal directly, eliminating the need for multiple middlemen. In some cases, only one product-sourcing agent is required, which makes it easier to start the process.

Connecting with a trusted supplier or their representatives at international trade fairs can be made easy through online marketplaces. It’s possible to visit different markets in China or work with an experienced sourcing agent. It is important to find a reliable, experienced manufacturer.

Reactivity

If you can’t source the right goods at an acceptable speed, speed alone will not be desirable. For profitability to be achieved, it is essential to quickly react to the needs of consumers.