With over 2.8 million manufacturing enterprises, China offers a vast array of choices for businesses looking to establish reliable supply chains. However, selecting the right manufacturer requires considering not only the product cost but also the reliability of the Chinese partner.
For small businesses or retail buyers, platforms like Aliexpress are often the most convenient option for ordering goods. However, for large orders, it is essential to find a reliable supplier who can provide consistent supplies.
In this guide, we will explain how to find a factory in China, verify suppliers, and negotiate favorable terms of cooperation.
Advantages and Disadvantages of Working with Chinese Factories
Advantages:
Wide selection of manufacturing enterprises
Low production costs
High production capacity
Opportunities to get acquainted with companies at international trade fairs and online
Disadvantages:
Language barrier
Challenges of remote monitoring
High minimum order quantities (MOQ) at many factories
Issues with intellectual property protection
Types of Factories in China
OEM (Original Equipment Manufacturer) — These manufacturers create products according to the customer's specifications and sell them under the client's brand.
ODM (Original Design Manufacturer) — These companies design and manufacture products on their own, and then sell them to other companies. Clients can modify the designs and sell the products under their brand.
Where and How to Find a Factory in China
Online: Numerous business platforms exist where you can find manufacturers, read reviews, check ratings, and get guarantees.
Trade Shows: Participating in trade shows is an excellent way to find partners. It offers a chance to meet company representatives and learn about their products firsthand.
Intermediaries: Agents can expedite the process of finding and verifying a factory thanks to their experience and contacts.
Forums and Communities: Russian-speaking forums and communities dedicated to doing business with China can provide valuable advice and contacts.
Trading Cities and Wholesale Markets: Visiting these centers allows you to assess the quality of products and production processes in person.
How to Verify a Factory in China
Verification can be done independently or through intermediaries. Intermediaries can provide detailed reports on companies, including photo and video evidence.
For safety, it is recommended to:
Verify the company's registration in official registries
Request certificates and product testing results
Pay only 30% of the amount before production and the remaining 70% before shipment
Check reviews and request a live video tour of the factory
How Factory Audits Work
A factory audit is a detailed report prepared by an independent inspector, including an assessment of production capacity, quality control systems, and management.
How to Place an Order with a Chinese Manufacturer
When placing an order, it is crucial to provide precise specifications, including design, color, dimensions, and quality requirements. Ordering a product sample helps ensure it meets expectations.
The contract should include:
Information about the buyer and seller
A detailed description of the product
Terms of delivery, payment, insurance, and warranty
Bank account information
Benefits of Working Through an Intermediary
Intermediaries understand local specifics and language, have experience in negotiations, and can oversee product quality. This is particularly important when visiting China is challenging.
Visiting the factory and supervising the loading process help prevent potential issues and ensure product quality.
For businesses starting to import goods from China, it is crucial to ensure that the chosen factory can provide consistent and high-quality supplies.
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