Nowadays, most companies in advanced countries are setting their eyes on outsourcing their production to a country where they can get substantial financial benefits.
China is one of the countries, which is on the radar of most manufacturing companies because of several reasons. However, before committing to any Chinese company, it is necessary to find a reliable supplier who can help you with your objective.
Outsourcing in any different country may carry several risks:
- Fraud
- Quality issues
- Supply delays
- Language and cultural issues
- Time difference
- Communication
- Proper monitoring
All these may lead to loss of money or opportunity and sometimes even loss of confidence among customers.
However, it is difficult to ignore the fact, that today China is a leading exporter of various goods that are made in the country. Many top brands of the west have collaborated with Chinese companies and have managed to increase their profits.
The process of how to contact Chinese factories can be a daunting task unless you take the support of any sourcing agent in China, who is well aware of that country and can address most of the risks that are mentioned above.
How to find a China manufacturer?
There are several ways to find a Chinese manufacturer and since we are now living in the internet age, hence to get a list of a few prospective companies may not be too difficult to explore.
However, if you have a sourcing agent in China then your task can become much easier. They are very much conversant with Chinese business scenarios and how to contact Chinese factories is a very easy task for them.
Let us know a few ways how you can find any suitable Chinese manufacturer with whom you can initiate a discussion.
1. The Internet
You can start with an internet search and identify a few suppliers who are dealing with the product that you are interested in.
Using search engines like Google, Bing, or Yahoo to identify a few B2B platforms can be quite useful. Well-known online sourcing platforms like Alibaba, Global Sources, and also Made in China, can help you to connect with many Chinese manufacturers.
You must ensure that you are listing only manufacturers, and not any resellers or traders.
2. Industry network
Another useful resource can be your own industry network. You can try to get recommendations from your trade bodies, or any business contacts available in the industry.
3. Trade fairs
Visiting a trade fair held in China can be another way to identify Chinese manufacturers or suppliers. However, whether you can afford the expense of traveling to China or spending your time will depend upon what size of your business you want to do.
Initiate discussion
You must have made a big list of prospective Chinese suppliers. Now is the time to get in touch with them one by one. You may start with an email and let them know what your requirement is.
1. Introduce yourself
You can mention brief details about your business and the kind of product that you are interested in. You may also briefly mention the amount of market that you have and what is your business turnover with your target for the coming years.
2. Share your specification
You must share about the product that you are interested in outsourcing from China. You must provide all the relevant details about your product along with its technical specifications so that supplier can understand clearly what exactly are you looking for.
3. Specify your intent
You must specify your intent clearly like whether you want to buy their product or like to outsource the manufacturing of your product in that country.
Generally, Chinese factory owners are not really much interested in “development” projects because such projects often tend to consume a lot of their time and may cost a lot particularly, if no clear end is in sight.
Often endless modifications are asked for in tooling and this may generally end up in delays and more expense.
4. Your order quantity
Whatever, the product you want to source from the Chinese manufacturer, you must let them know the tentative quantity that you need to buy initially and then in the longer run.
This will help them to offer a necessary price quote for the item. You must understand, Chinese companies are not afraid to lose your business, as they get enough inquiries. Therefore, if your order quantity is not substantial, then they may not bother to reply to you.
After you have a satisfactory reply from a few of the Chinese manufacturers, the next step in how to contact Chinese factories will be to start a detailed discussion and negotiation.
1. Ask for their business licences
Once you have identified your potential ally to manufacture your products in China, then verify the license of the company before proceeding further.
You must prefer those manufacturers who are already supplying their products to any European country or the USA.
2. Verify the credentials
You must now verify the credentials of your prospective ally. While a few obvious details are already available online. Also, some additional details, they must have given to you.
The following few things that you must specifically confirm:
- Whether the company is indeed a factory and not a certain middleman.
- Whether they have got the necessary technical expertise and capability to produce and deliver what they claim.
3. Negotiate well
While negotiating make sure that you calculate the actual landed cost of your product. Also, don’t press too much for price so that the supplier may compromise on quality to offer the target price.
4. Make a deal
Make a legal contract by involving any lawyer who is very well familiar with Chinese laws.
Manufacturing is the process of converting any raw materials into finished goods. It can be carried out manually, with basic tools, or with sophisticated machines. Manufacturing is an integral component of numerous industries and contributes to the economies of numerous nations.
Therefore, before you start your venture of how to contact Chinese factories, you must be very thorough about your product and its market. Any sourcing agent in China can be a valuable resource for you in finding a reliable manufacturer in China.
