How Should You Establish a Tie with Any Chinese Manufacturer?
In the manufacturing areas, China has emerged as one of the major players in the world. As per the UN statistics of 2018, China accounts for 28% of the entire global manufacturing output.
The country has achieved this position by:
- Rapidly developing its business ecosystem
- Offering low labour costs and taxes
- Establishing less stringent regulations
Recently, however, China has started higher-end manufacturing, as a result, started raising costs. This has become further complicated due to recent the US-China trade war, as a result, many companies have started seeking other cheaper manufacturing countries like:
Despite these changes in geopolitics, China still holds the major share of the world’s leading manufacturing business. Thanks to its experience in dealing with overseas customers, well-established logistics networks, and also a diverse manufacturing base.
If you are one of the new importers and are interested to do business with certain Chinese manufacturers, then you may often find the process too daunting and also confusing initially.
So, in this write-up, we will offer you a few tips so that you can effectively contact Chinese factories.
In this internet age, you can always contact any Chinese manufacturers on certain B2B (Business-to-Business) platforms or some other online platforms without understanding the Chinese language or even visiting China.
Some of these include:
- Global Sources
- Trade wheel
What are the benefits of manufacturing in China?
In the last few decades, the Chinese economy as well as the wholesale market has developed quite rapidly. Chinese suppliers have developed a large workforce, and the country has become very competitive.
The following are a few benefits of finding Chinese manufacturers:
1. Cost-effective production
China’s manufacturing costs can be decreased without lowering output. As a consequence, you will increase your profit margin and have more cash available to spend on other aspects of your company.
2. Knowledge of the product
When leveraging Chinese manufacturing, you can profit from a solid knowledge base. You may depend on numerous manufacturers to produce your goods again in high quality.
3. Growth of the market
The opportunity to expand into new international markets is a significant advantage of manufacturing in China. Global consumers will purchase your products if they are made in China.
4. Fast, high-quality output
Large orders for products can be produced quickly by Chinese producers. China has several factories and can make goods in large quantities at low cost.
Few important tips to contact Chinese factories:
1. Communicate clearly
Your biggest challenge might be communication, once you locate a Chinese manufacturer. This is especially true if the supplier’s command of English is inadequate.
Inexpensive delays, incorrect orders, incorrect specifications, or even a breakdown in your business relationship might result from miscommunication.
To prevent this, just use plain English while emailing and stay away from jargon and technical phrases. Ask a limited number of questions each time so that your supplier can respond with greater focus.
It may also be a good idea to hire a sourcing agency in China.
2. Get your pricing right
Pricing is one of the most important factors to take into account if you want to operate a profitable internet business. It is likely that the initial price you receive from your supplier is negotiable, so don’t be shy about bringing up savings.
It is essential to refrain from too much bargaining from your suppliers because doing so can push them to compromise on the quality of their products.
To match your price, they can use subpar components or materials since they need to turn a profit. Lead times may also be a problem for you because they will put your order behind other, more lucrative orders.
3. Select the right type of supplier
Not all Chinese businesses that advertise online are factories. There will be factories, which serve as the actual locations for the production and assembly of goods. However, you will also come across trading firms that serve as “middlemen” or “brokers” between these factories and the buyers when you try to contact Chinese factories.
4. Understand the Chinese holidays and their impacts
A notable holiday that lasts for three weeks, between the end of January and February end, is the Chinese New Year. Workers leave the city to celebrate with their relatives in various regions of the country over this holiday, which causes a widespread shutdown of factories.
The Chinese New Year can have a negative effect on your supply chain and cost you several thousands of dollars in delayed shipments if you don’t take it into account.
Perform a comprehensive inventory to determine what you already have enough and what you need to acquire before this holiday to avoid these increased prices.
If you can wait, don’t place big orders now.
Plan ahead for the reality that it can take the manufacturers up to a month to resume regular output after the holidays.
China also observes a number of additional holidays throughout the year. To comprehend any potential delays, it is vital to maintain ongoing communication with your Chinese supplier.
5. Build a strong relationship
You must do your research on your Chinese supplier, including verifying their physical address and obtaining references and even work samples. Even if this is a crucial initial step, it is strongly advised that, whenever possible, you visit the source in person.
You can learn how your product is made, whether everything is done in-house or if there is any outsourcing involved, by visiting a factory. This is also a wonderful opportunity to talk about any product customisation you may be considering.
In Chinese corporate culture, interpersonal communication is valued highly. Having dinner together with your suppliers will forge relationships and foster trust. A face-to-face meeting may also result in more affordable prices or benevolent payment arrangements.
6. Considering geographic factors is important
Another crucial aspect to take into account is where the global manufacturing hub will be located. China is home to many well-known companies, and there are high-quality goods there.
Additionally, take into account accessibility because it may be more expensive to reach a factory’s products if it is less accessible.
Hiring a trustworthy and reliable Chinese sourcing agent can be a very smart idea to contact Chinese factories as they will be fully aware of the local companies. Besides they can make your communication with Chinese suppliers more effective and long-lasting.