China’s manufacturing industry is growing at an astonishing rate. It is estimated that the momentum will continue in the coming years. China’s manufacturers are reporting their best profits in years, fueled by government-led infrastructure spending, a strong housing market, higher factory-gate prices and products sourced from China.
This country has weathered the global economic crisis better than most other nations. Today, approximately 55% of China’s population lives in cities, compared to less than 20% in 1978. And the share should rise to 65-70% over the next 15 years. New and expanding cities sustain growth through services-based employment, which in turn boosts consumer purchasing power by trebling per capita income relative to that earned in the countryside. Western and the US companies and business owners are depended on this nation as they heavily source products from China.
The President Xi Jinping and Premier Li Keqiang administration unveiled an ambitious reform agenda in an attempt to change the country’s economic fundamentals and ensure a sustainable growth model. In this regard, authorities expressed their willingness to tolerate lower growth rates as a necessary condition to push forward economic reforms.
There are few interesting facts you must know about the manufacturing muscle of this Asian country-side-
- Almost 80% of all air conditioner units are created by Chinese businesses.
- China manufactures more than 45 times as many personal computers per person than the rest of the world combined.
- China is also the biggest producer of solar cells, shoes, cellphones and ships.
- Whether it is a start-up or an established company, China holds enormous business possibilities for everyone. You just need to select a reliable Chinese sourcing to boost your business.
When you are first looking for suppliers, you want to try and go with someone who is a bit smaller because they will be hungrier for your business and might be more open to doing something a bit different. Consider being the brand owner. Even if you are the sales agent, you can work with the factory to develop a local brand for your market. If you own that brand as a trademark and the end buyers value the brand, then should the factory try to cut you out of the mix at a later point.
Focus on what you can see that’s real. Don’t assume because a company has 500 pictures of products there that they must be great at making that product. There is much more to finding suppliers than that – focus on what you can see that’s real evidence.
A big part of sourcing products from China is negotiating for them, and we don’t just mean about the price. Negotiate on the quality, negotiate on the terms, and negotiate on the type of relationship you have. Tailor your vendor inquiries for specific product categories. This might sound obvious but it’s important to be very specific from the start about what you are looking to buy including types of products, materials, size, color, etc.