Working with manufacturers in China is one of the most important strategies.
This is a common practice for multinationals, big brains, and even small businesses.
- Lower manufacturing cost is the most mentioned reason.
- But the truth is, there are more reasons than only this one.
- We will tell you 7 of the most important reasons in this post.
There have been many reports about relocating factories from China to other countries and regions.
- But does that mean Chinese manufacturers are no longer good to work with?
- Or does that mean you should also find new manufacturers for your product somewhere else?
Let’s forget what the media is reporting.
And think only for yourselves and by yourselves.
As a third-party quality inspection company, BackMorning has been working with some of the top global brands and smaller brands in regional or niche markets.
We wish to share some of our opinions about our experience as a participator in the global supply chain.
Below are 7 reasons why manufacturers in China are still worth considering.
1. Manufacturers’ experience is priceless
Usually, it takes months for workers on the frontline to master basic manufacturing techniques.
And it takes years for manufacturers to optimize their manufacturing processes.
Moreover, it can take one generation to become a great master of certain products.
If we go further to product design and development, it’s not just a matter of time, but also national education and government’s public policies.
It is unlikely to shift production to another location, and it will be smooth in days.
Even those experienced manufacturers will have to adjust locally.
It is not uncommon that manufacturers to close completely after shifting production locations.
Products are manufactured by people, though machines are important for production.
The experience of workers and manufacturers is priceless for products.
Some products began their production in China more than 10 years or even 20 years ago.
The people in those industries have more experience than people in other countries or regions.
This is an important reason why you should still consider working with a Chinese manufacturer.
2. Faster speed is critical
The Internet has increased the changes dramatically.
And e-commerce has made the changes even faster.
- Market trends spread and vanish at a speed that was not possible in the past.
- The speed for a product to go from a concept to reality has been a rising priority.
For this reason, you will need to consider the time to arrive in the market.
Therefore, the overall efficiency of a country is important for the manufacturers.
China heavily invested a lot in infrastructure in the past decades.
- The advantages include transportation networks, warehouses, small package shipping, etc.
Such an integrated supply chain is critical when it comes to the fast-paced markets today.
In many cases, a package can be delivered in one day across a distance like the European Union.
This is very helpful for product design and development and also sampling.
This ecosystem is a hard-to-match concentration of people in the manufacturing industry.
- They include material suppliers, assembly factories, skilled workers, and service providers.
- And also include a wide range of low-tech, mid-tech, and even high-tech products.
All these factors contribute to a very fast-reacting manufacturing location.
This is definitely not ignorable if speed is one of the most important strategies for you.
3. Extensive supplier bases
In most countries, their markets are free markets.
That means the people decide where to open factories and what to produce.
The downside of such a public policy is there are not many concentrated supplier bases.
Sometimes the manufacturers will have to look for even small items across the world.
On the contrary, the public policies of the government play a significantly more important role in China.
From time to time, they made public policies to build industries for their regional markets.
They can concentrate different resources on the industries that they plan to build.
For this reason, there are many highly concentrated supplier bases across this country.
Take the LED lighting industry in China for example.
There are 2 cities where you can find many suppliers.
- If you will need quality LED lights, go to Shiyan, Shenzhen.
- If you wish to find LED lights with lower costs, go to Henglan, Zhongshan.
The suppliers are so heavily concentrated that you will be able to find all the materials to assemble new lights by walking down the street.
And there are still more other well-organized industrial parks, where better manufacturers can enter.
This unique feature offers competitiveness probably you can’t find anywhere else in the world.
4. Smaller minimum order quantities
Sometimes, minimum order quantities can be a heavy investment.
It can be risky if you have to prepare a lot of inventories, especially for new products.
Generally, manual work is still an important part of Chinese manufacturers.
This feature has an advantage of its own – flexibility to adapt to different products.
Manufacturers don’t have to invest in new machines, molds for differentiation, or innovation.
3D printing technologies are definitely very helpful for minimizing costs and simplifying processes.
However, there are still plenty of manufacturing techniques that are still not replaceable by 3D printing.
For this reason, using manual work can minimize the costs for the initial stages.
This means you have more choices to better fit niche market needs.
Meanwhile, you don’t have to begin with a big investment in MOQ.
This advantage is well worth considering if you run multiple product lines.
Particularly if differentiation is one of your priorities.
5. Better scaling capabilities
When you decide to work with a manufacturer, scaling capability is one of the important things to consider.
Preferrable to work with a manufacturer who has the ability to scale as your sales grow.
It is not good if you have to find another supplier when you need to buy more.
Manufacturers in China are better suited for scaling up the productivities.
The infrastructure in China has been well established across the nation.
Most Chinese manufacturers also have years of experience in their industries.
This allows them to scale-up production capabilities quickly in case needed.
It’ll be comparatively faster for them to increase production from thousands to millions.
Needless to say, it will depend on the type of your products and some other things.
However, there is no better alternative than taking advantage of this feature in China.
6. More advanced technologies
Technically speaking, China is still not comparable with developed countries.
But definitely, it has more advanced technologies than most developing countries.
As mentioned above, any one industry is a combination of high technologies and low technologies.
It is not easy and even impossible to develop if an industry has no high-tech participants inside.
Unfortunately, advanced technologies require experience and also heavy investments.
The manufacturers in China have already gone from low technologies to high technologies.
In some new industries, there are even more new advanced technologies applied than anywhere else.
This will also be an important point for you to consider.
7. Competitiveness due to geographical limitations
The production of some products can be limited by geographic factors.
This is usually because producers of some critical materials have significant advantages in their areas.
Only they can produce materials of superior quality with the natural environment over there.
Therefore, those manufacturers can offer finished products that nowhere else can compete.
One example is mulberry silk.
- This material largely depends on the natural environment for growing mulberry trees and farming silkworms.
- Therefore, they can produce better silk bedding and other fashion products.
Another example is magnets.
- There is a rare material used to make magnets, which are rare earth metals.
About 98% of rare earth metals made produced in China. - Therefore, you will definitely need to consider working with a local manufacturer.
Conclusion
We have already explained 7 reasons why you should still consider manufacturers in China.
And it’s from the point of view as a participant in the global supply chain in the LED lighting industry.
If you need help with your sourcing to manufacturers in China, feel free to contact BackMorning.
Usually, we reply to most emails and messages in a few hours.