OUTSOURCING TO CHINA WITH A CHINA MANUFACTURING AGENT: BENEFITS OF MANUFACTURING FROM CHINA
Manufacturing businesses are always on the lookout for avenues wherein they can reduce production costs without compromising on quality and many such companies have been fortunate to have this goal met by outsourcing production to a China manufacturing agent. The reason for the success of these outsourcing endeavors are manifold and this article aims to enlighten the reader on these reasons alongside provide suggestions and guidance on how to replicate these successes by working on outsourcing your production in tandem with a China manufacturing agent.
For a smart business; the ultimate goal is a balance sheet that looks good on paper and is indicative of greater revenues and lower production cost. Unfortunately; many businesses fail to achieve this goal when carrying out production duties in their own country. Higher labor costs and the cost of raw materials often prove to be a roadblock on the way to a perfect balance sheet and growing revenues however a China manufacturing agent can bring effective and positive change and it is the intent of this article to help you find out how. With a production centric economy that is bolstered by China’s outsourcing market that has grown at the rate of 30% in the last few years; China is the perfect production destination that has proved to be lucrative for multiple manufacturing businesses. For many companies; China manufacturing agents have been a solution for their production cost woes and in-house manufacturing has been increasingly replaced by outsourcing production duties to a China manufacturing agent.
The link between higher revenues for companies and outsourcing to China is bolstered by import from China with the assistance of product sourcing companies. Via this process; a global buyer is able to purchase general merchandize which is then customized according to buyer needs by a China manufacturing agent offering OEM service owing to the R&D capabilities of these agents and the ability to create perfect China prototypes for any product that was originally manufactured elsewhere.
Statistical data clearly holds up the claims of effectiveness, profits and production excellence offered by a China manufacturing agent. Currently China produces 80% of world’s air-conditioners, 70% of mobile phones, 60% of shoes, etc. China has been nicknamed “Factory Asia” by global economists for a number of reasons and the most prominent among these is the support China manufacturing agents receive from their country’s government. The government has taken a clearly pro-industry and pro-outsourcing stand by offering greater subsidies, incentives and proper infrastructure to support local manufacturing units; both big and small. This creates the perfect production environment that is positively utilized by a growing number of manufacturing businesses from around the world. China manufacturing agents are definitely making ample use of the advantages extended their way and are taking on global giants in the production sphere. As of now China manufacturing units have successfully taken on almost half of the world’s goods production duties and growth seems to be the obvious way forward owing to an industry friendly government. Read further to know more.
Important points to get products manufactured from China
As mentioned before; the overwhelming reason for most business concerns to enroll the services of a China manufacturing agent is lower production cost however there is more than one benefit to taking this step.
China has attained elevated status as one of the major economies in the world within the last decade. A lot of this progress can be credited to the growing production capabilities of this country and the opening of global trade and commerce. Currently; China is on the 2nd position of global economies based on nominal GDP and holds the distinction of being the number 1 economy going by purchasing power. With these global status distinctions; China has cemented its position as an economy to reckon with and invest in. By extension; your investments in a China manufacturing agent is more than likely to bear fruit.
Market fundamentals almost always guarantee success when you outsource production to a China manufacturing agent. This is primarily because the average consumer is encouraged and fueled by lower costs and as costs come down, purchase goes up. The demand for goods is directly proportional to the cost of the goods; conveniently priced goods find more buyers than expensive goods. Your decision to lower production cost by outsourcing production to a Chinese manufacturing unit results in savings that can be passed down to your customer base in terms of lower prices for the products you sell. This is sure to fuel sales and greater sales figures result in greater financial returns. Companies that lower their production cost with the assistance of China manufacturing agents are bound to win over their competitors when they are able to sell the same products at lower costs. This is a fact that is easy to comprehend. This is the number one incentive for setting up a working relationship with a China manufacturing agent; lower production cost equals to lower product cost and higher sales figures.
Benefits of Newly Established Business Concerns
Setting up a working relationship with a China manufacturing agent can be one of the smartest steps for startup business concerns to take. Startups mostly work on smaller budgets than established businesses and as such costs need to be kept at a minimum. This is best achieved when a startup has access to lower labor cost, lower costs for raw materials and overall lower production costs. This is an undeniable benefit of working in tandem with a China manufacturing agent. Additionally; startups can save on wages paid to labors and workers, operating expenses, trade expenses, export and import duty and the like when partnering with a China manufacturing agent. This allows for greater profits that can be invested into marketing, brand building and expanding one’s reach in terms of new territories and markets. With production cost lowered; startups are capturing the market with products sold at lower prices that are proving to be stiff competition for their established competitors. This is the literal definition of taking the market by storm. Owing to China’s established export resources to other Asian countries; partnering with a China manufacturing agent also greatly facilitates expansion into upcoming Asian markets that have established a reputation for greater purchase power in the recent years. Partnering with China allows for a detour from saturated markets into booming economies where consumerism is growing in leaps and bounds.
Science and Technology
China has created a highly-production atmosphere for advancements in science and technology. Government initiatives are pro-people and pro-science and China has truly mastered the art of harnessing the power of science, technology and human resources. China is definitively on an upwards trajectory when it comes to science and technology and is quickly leaving behind many other countries in terms of scientific and technological advancements. As such; your manufacturing business is bound to profit when you have an established relationship with a China manufacturing agent for production of high quality and technologically advanced consumer products. Government initiatives that bolster scientific and technological advancements, an expert and highly skilled workforce, pro-industry infrastructure are all at your disposal when you outsource to China. As an example, the city Shenzhen in China is reputed for being the hub for PCB manufacturing,PCB assembly and electronic manufacturing services to the extent that the mobile phone giant, Apple has established manufacturing units there. Harnessing the scientific and technological advancements of China for the good of your business is best achieved when you can establish a working relationship with an established China manufacturing agent such as CNSourceLink. Read further to know more about CNSourceLink.
CNSourceLink – Your Comrade in Initiating Manufacturing Process
Setting up production shop in a new country can be a difficult proposition however when you have the benefit of a China manufacturing agent like CNSourceLink at your disposal; the task is so much easier and success is truly within reach. The experts at CNSourceLink are ready to put in the hard work, dedication, spirit to take on the challenges, and of course the know-how to ensure your endeavors are a success. CNSourceLink is the sourcing firm and China Manufacturing agent to rely on when you wish to set up an efficient production shop in the manufacturing hubs of China; with ready access to Chinese advancements in science and technology, a skilled workforce and a substantial decrease in labor costs, raw materials costs and overall lower production costs. The efficiency of CNSourcingLink comes from its ample experience as a China manufacturing agent and the experts at this firm are ready to harness the knowledge gained from experience for the growth and advancement of your company. CNSourceLink has established successful production units for various clients from around the globe and are the perfect consultants to engage with when you wish to harness the trends of China manufacturing for your commercial endeavors. CNSourceLink creates the perfect symbiosis between foreign businesses and local production units to establish a strong working relationship which is difficult in the face of cultural and language barriers and without the expert services of CNSourceLink to overcome these barriers.