How Do I Get Started in Finding a Manufacturer If I Don’t Know Anyone In China?
Original Design Manufacturer (OEM) companies are those that design and manufacture a specified product. The product is later branded by another firm for sale. OEM companies in China have doubled in size and number over the last couple of years. They are now capable of taking orders from many clients simultaneously.
OEM companies let the brand company get their products without necessarily running the factory. This type of trade is common with international companies which purchase manufactured goods and retail them under their brand name. In this case, the manufacturing company is the OEM.
In recent years, China has changed its manufacturing strategy by keeping the factory costs as low as possible while producing high-quality goods.
How do I find the right Manufacturer?
If you don’t know any Chinese resident, it is still possible for you to build a successful long-term relationship with a manufacturing company. Here are ways n which you can find the right manufacturer:
- Identify a couple of potential suppliers that you would be interested to work with. Initiate direct communication with these companies to negotiate the pricing. It can be hard finding the right manufacturing company and building a successful relationship.
Some of the ways that you can meet potential suppliers are via a sourcing agent, Alibaba.com, and through canton fair.
- Talk to your close friends and family. Ask them if they can connect you to any manufacturing company in China
- Pay a visit to the factory. This will allow to clarify any misunderstandings and talk with them to let them know exactly what your expectations are. Use that opportunity to look at samples and review the facility to see whether they’re well equipped.
- Use prototyping methods to come up with the final design
- Conduct enough research about the company before entering into any form of agreement with them
The Pros and Cons of Outsourcing Manufacturers in China
Cons
1. Finding the right factory
The biggest challenge that people face is finding the right company to work with.
2. Language Barrier
Communication is another issue that makes it difficult for international companies to outsource in China. Language barriers can lead to misunderstandings which can affect the quality of the final product.
3. Stigma
Most people have a low opinion about products that are made in China
4. Good Quality
At times, the quality of goods is the same as that you would have gotten if the products were manufactured domestically.
Pros
1. Lower costs
Generally speaking, it is cheaper to get your goods produced in China. This is after you have factored in shipping costs and duties.
This is a huge advantage for companies who are working on a tight budget.
2. Better Service
Chinese manufacturers are more likely to give you better service compared to domestic manufacturers.
3. Higher Output/Quicker Time
Most of the factories are able to produce large orders within a relatively short time. These quick turnaround times are really impressive for international companies.
When you want to work with a domestic manufacturer, you might be disappointed because they often have a limited capacity and so they can’t deliver within the expected time.
