How to Find a Manufacturer in China -The Complete Guide

Today, I will make the process of finding a manufacturer in China for your product simple and straightforward.

I know you could be an OEM business or you want to buy products in bulk.

Whichever the case, you will find all information about finding manufacturers in China right here.

Difference Between a Manufacturer vs. Middleman vs. Trading Company

Before we get into the nitty-gritty, let us first discuss the difference between these three types of service providers.

First of all, many foreign buyers tend to favor manufacturers only over all the other types of traders.

They believe that trading companies drain profits in between the supply chain.

Middlemen, including sourcing agents, are also believed to be negative players in the china manufacturing industry.

When making your choice between a factory, middleman, or trading company, you need to pay attention to your requirements.

Ask yourself what you care about, which should be quality, price, and service.

As a key player in this industry, we believe that buyers can partner with any of the above traders.

Your partner of choice should be the one that best juggles quality, price, and service.

Work with someone that can influence the manufacturer to adjust these three factors to perfect balance.

For example, when you’ve searched and found a suitable trading company that can strike a good balance among these three factors.

What would be your reason for not wanting to partner with them?

None, we believe.

As a matter of fact, some trading companies in china can considerably offer lower rates than manufacturers.

They do this with the benefit of getting tax refunds from the government.

What’s more, we have to admit that some of these companies could have more product knowledge expertise than the other traders.

The same applies to individual sourcing agents; they have been widely stereotyped as always taking kickbacks in between.

Be that as it may, some professional, reliable, and trustworthy agents are worth a check.

All you need to do is observe keenly, trust your gut, and sometimes rely on your luck to find an excellent trader.

Engaging a professional sourcing agent can be advantageous as they work to find you a quality manufacturer without bias.

The agents can confidently show you the different options available and always fight for your interests during negotiations.

Additionally, some China sourcing agents can offer you good references for manufacturers.

They can also deal with them directly to help you save time and money.

These agents also provide their services at very reasonable and flexible rates.

Moreover, they can dedicate more time and attention to your needs.

When finding a manufacturer in China, something to keep in mind is to avoid dealing with those that specialize only in domestic business.

These can be frustrating as they mostly engage trading companies for overseas transactions.

Fortunately, as a foreign buyer, you can create a suitable course for yourself.

You can do this by engaging sourcing agents, business interpreters, middlemen, or trading companies to help overcome issues.

All in all, we advise that you cautiously examine the price, quality, and service of different traders before engaging them for business.

Remember, there is no guarantee that any of the players mentioned above are the best choice.

Your choice will depend on your business model and manufacturing requirements.

Why find a Manufacturer in China

China is known as the world factory for good reasons.

The country offers labor and manufacturing at considerably lower rates than elsewhere in the world.

This makes outsourcing your production to Chinese manufacturers a practical, cost-effective option, mostly if you sell your products on a large scale.

Also, China is a vast country with a long history of manufacturing.

As such, it has been able to produce many experienced manufacturers.

Moreover, being a manufacturing hub of its magnitude, China has the perfect infrastructure for international trade.

Whether it is raw materials or logistics, you don’t have to worry about manufacturing in China.

Everything is perfectly set out.

What’s more, the scalability and specialization in China are admirable.

This only assures you that China manufacturers are well equipped and experienced in their industry of specialization.

Top China Manufacturing Products List

The first step in finding the right manufacturer in China is to understand your requirements.

You need to know the product that you have and find a suitable manufacturer for it.

But first, what type of products can your manufacturer in China?

Popular Products Manufactured in China

There are plenty of products that are manufactured in China.

After all, China is the world’s manufacturing hub, which means that you can outsource any product to China manufacturers.

They have the skill and capability of handling a wide range of products.

Some popular products that are manufactured in China include;

• Plant machinery
• Pharmaceutical equipment
• Automotive parts
• Toys
• Fashion products and accessories
• Clothing and footwear
• Consumer electronics
• Furniture
• Food and other agricultural produce
• Steel products
• Home appliances
• Building products
• Sportswear
• Jewelry
• Art and crafts
• Mobile phones and accessories

These are just a few of the long list of products that you can outsource to China manufacturers.

They are made in varied qualities and price ranges depending on the customer’s needs.

Knowing what these products enable you to determine your chances of finding a manufacturer for your product in China.

How to Identify the Product to Outsource to Manufacturers in China

As we’ve said, your primary task in finding the right manufacturer in China is to understand your needs comprehensively.

You need to know exactly what type of manufacturer to search for depending on your product.

Basically, there are three types of products:

· Invention

An invention is a new product created for a new market.

It doesn’t exist anywhere else in the market, whether in the same or different form.

It is a whole new idea.

For this, you’ll need to find a manufacturer that can make, assemble, and package the product.

They have to define the parts and materials required for the product and any additional parts that they may need to use.

· Deviation

This is an existing product design made into other forms.

For this, you need an established manufacturer that can also help with the distribution of the products.

Such a manufacturer can help you with the production.

With such expertise, you may not have to define everything fully.

They can even help connect you with potential markets around the world.

· Existing Product

This is neither an invention nor a deviation but an already established product in the market.

There is usually nothing new about this product, although you can customize it a little to suit your market.

Like all the others, this also requires that you find an established manufacturer for it.

Types of Manufacturers in China

Once you have determined your needs and requirements, you can make your choice of manufacturer.

In China, there are comprehensive manufacturers, special product manufacturers, and OEM and ODM manufacturers.

Depending on your type of product, you need to identify a suitable manufacturer with the right capability to make your product.

Start by establishing what type of manufacturer you are looking for?

• Corporation; this is a large manufacturer that handles large volume orders for big brands and buyers.
• Family-owned manufacturing business; these are relatively small and handle considerably lower amounts of orders for SME buyers.
• 3^rd party suppliers; this kind can find ready products from suppliers and also have the capability of developing products in-house.
• Vertically integrated manufacturer; this is a manufacturer with the capability to produce, distribute, and sell products they make. They can help you find a distribution channel for your products.
• Assembly-based manufacturers; are suitable for products that comprise interchange parts such as automotive, machinery, and electronics.

It would help if you categorized your service provider correctly to understand your needs well.

For example, if you want to produce a specific product type, you may choose a specific product manufacturer with a physical factory.

Not a comprehensive one or a 3^rd party.

However, if you have a small company and require special attention, strive to establish Guan xi with a small family-owned business.

Where to find Chinese manufacturers

Having understood your product requirements, you need to find a manufacturer to make the product for you.

So how do you find the right one?

There are many ways of finding the right manufacturer in China. They include:

· Online Marketplaces

There is an abundance of online marketplaces that can help you get your search started.

Alibaba, made-in-China, and global sources are some of the many sites you can use to find the right manufacturer for your product.

They are more like a virtual trade show where thousands of manufacturers feature their products and production capabilities.

China’s e-commerce sites are incredible resources.

You can easily browse and view a variety of manufacturers available for your project.

From the sites, you can get great ideas on manufacturers, their pricing, and MOQ (minimum order quantity).

Another advantage of these sites is that you can immediately contact and talk to the manufacturers.

The initial step is to determine if the “manufacturer” is a factory or a trading company.

An easy way to know this is to ask directly when you contact them.

Ideally, you want to deal with a direct factory for cost, quality, and operational efficiency.

· Trade Shows and Exhibitions

Going to trade shows is an excellent way to meet potential manufacturers.

These shows allow you to explore and see up close the scope of items that the exhibitors offer.

You can immediately talk business with manufacturers who provide products like yours.

You can often contact the manufacturers then visit their factory later, once the exhibition is over.

The greatest trade expo in China is the canton fair.

It happens twice a year, in fall and spring.

Another huge expo is the Hong Kong mega show that also draws in many exhibitors from various industries.

· Social Networks (like LinkedIn)

Reaching out to your social media and networks of trusted contacts can help you find a suitable manufacturer for your product.

Ideally, many importers from China have connections with manufacturers.

If not, they must have other helpful contacts that you can use in your quest to find a manufacturer.

What’s more, social media has become a powerful tool in researching business connections.

If you use Facebook, Twitter, LinkedIn, and other sites, are sure to let your contacts know what you’re looking for.

You can also ask for recommendations from your business and personal contacts.

· China Manufacturing Companies Directory

Another great place to search for a manufacturer is the China manufacturing companies’ directory.

It lists a wide range of manufacturers that are based in China with their reports based on extensive research

· Trade Associations or the Local Chamber of Commerce

Trade associations and the local chamber of commerce are a useful resource for finding reliable Chinese manufacturers.

You can leverage the data provided by these resources to research manufacturers and their capabilities.

Try to analyze the trade data provided by these entities.

A majority of them offer bills of lading and ocean freight records.

Additionally, the China chamber of commerce makes a large amount of factory data readily available to the general public.

You can take advantage of this to find yourself a good manufacturer.

· Agents/Brokers

Alternatively, you can search for a broker or agent who represents a factory.

With a knowledgeable person at hand, you can avoid potential setbacks when you manufacture your product in China.

Remember that some products may have quota restrictions.

Therefore, you need to establish this with your product early in the process.

If you cannot find a broker, try searching for agents who deal directly with a factory.

· Referrals

To find a more specific answer in your search, reach out to other people who sell a product similar to what you have.

Identify a similar product line that is not a direct competitor and ask for referrals.

The chances are that his/her manufacturer can find you a factory for your product.

Alternatively, you can try to consult someone who is already manufacturing in China.

Referrals will provide you an immediate level of comfort and confidence with manufacturers.

You can also consider asking for referrals from marketing companies if you know some.

Call domestic factories and inquire about their connections in China.

· Using a Sourcing Agent to Find a Manufacturer in China

One of the most convenient ways of finding a reliable manufacturer in China is using a sourcing agent.

Many buyers from all over the world rely on these agents because they offer many advantages to both the individual and the business.

Who is a Sourcing Agent?

A sourcing agent serves as a regional representative for many buyers.

He/she performs outsourcing responsibilities and roles in the interest of business owners.

Basically, a sourcing agent is employed by foreign companies and businesses to source manufacturers from favorable locations.

Companies and businesses do this to cut down their expenses and improve business.

With proper knowledge and skills, a sourcing agent can do endless things such as:

• Negotiate for a better deal in terms of prices and MOQ
• Perform factory audits to ensure proper ethical practices and quality
• Find factories that have quality machinery and manpower to handle your project
• Select manufacturers that can adhere to deadlines

Why use a Sourcing Agent

There are many advantages to using a sourcing agent in China.

One of these is that sourcing agents can help lower your business’s expenses since they look for low-cost manufacturers.

A sourcing agent takes on various roles.

He/she visits the manufacturing plant to guarantee your company is getting the ideal quality, cost, and service.

They likewise handle any subtleties that may happen at the factory.

Additionally, a good sourcing agent knows the significance of project management.

Likewise, they take it upon themselves to verify that the manufacturer has the right certifications.

How to Find a Good Sourcing Agent in China

When looking for a sourcing agent in China, find someone who has the knowledge and skills to help you save money.

The agent must also be reliable enough to offer helpful solutions for finding manufacturers with the best quality service and affordable prices.

Also, the following qualities are a must-have in a quality sourcing agent from China:

• Deep understanding and knowledge about your product and the manufacturing processes in China
• Excellent knowledge and skills to bid from various manufacturers
• Acceptable ethical practices and work efficiency

When you’ve found the right sourcing agent to help you find a manufacturer in China, have them sign an NDA.

This will help safeguard any confidential information about your business from landing in the wrong ears/hands.

A simple search online can lead you to a suitable sourcing agent in China.

Remember, the right sourcing agent can help scale your business to its maximum potential.

So work hard to find the best one to partner with.

How to Contact Chinese Manufacturers

It doesn’t matter which of the above approaches you use to search for manufacturers in china.

What is important is to create a shortlist of several of your findings.

Pick a few manufacturers that you like and review their profiles and websites.

Shortlist the manufacturers that look best to you; these should be those that can demonstrate that they can make what you want.

When you’re done with your review, it’s time to contact the shortlisted manufacturers.

Face-to-face interactions often yield better results.

However, when it comes to overseas manufacturers, you may be limited to contacting them via email.

Besides, Chinese manufacturers tend to write better English than they can speak; so, contacting them via emails maybe your best alternative.

Keep in mind that you need to find a suitable manufacturer for your type of product.

In this case, consider these steps when making your first contact with Chinese manufacturers.

If your product is an existing product, ask for the manufacturers’ price list and MOQ.

For derivations, it might best if you ask about their distribution network.

Also, ask if they would be willing to provide you with a variation of their current products.

In this case, you need to be careful about what you say about your product.

Know that these manufacturers are not yet your partners.

They possibly work with other people who might be your competitors.

The process of choosing a manufacturer for a new product (innovation) is even more complicated.

For this, you will need first to provide accurate engineering drawings and ask for a quote. Remember that you don’t have to reveal your product idea at this stage.

If your product consists of several parts, then you can only send some of the part drawings.

This can help you gain an indication of cost and capability.

But if your product consists of a small number of parts, then maybe consider IP protection before you contact any manufacturer.

How to Verify whether a Manufacturer in China is Reliable

When narrowing down your search for a manufacturer from China, it’s essential to conduct due diligence.

Meaning, you need to carefully investigate the manufacturers you like before making a final decision.

Check out things like their financial history, experience, industry reputation, factory organization, and legal standing.

You won’t be able to find all this information the very first time you contact them.

It will take you multiple contacts and a considerable amount of time to complete your verification.

Keep in mind that there are many good manufacturers in China.

However, there are many bad ones.

Doing due diligence for each potential lead will help you eliminate the manufacturers that do not meet your needs, lack experience, and are scams.

Some of the things that you may want to verify with potential manufacturers can include:

• It would help if you found out how long the factory has been in business, their company organization, and contact information.

Verify the phone number, email, and address that they give to ensure that it is legit.

• Manufacturer’s supplier. It is essential to know who supplies the manufacturer with raw materials for your products.

It would help if you found out as much about your manufacturer’s supplier as you would about their factory.

• Find out the number of projects that the manufacturer has worked on in the past, similar to yours.
• Quality control. What quality control measures do they have in place?

How many times do they conduct quality control during the production process?

It is essential to know this to ensure quality manufacturing.

• Warranty policy. You need to know the warranty policy for your manufacturer.

Do they offer compensation or allow returns for defective products?

If yes, how long is their warranty effective?

• Payment terms: You must know the terms of sale. Please find out how much they want as a down payment and their accepted payment methods.

When making your final choice, ensure that the manufacturer you choose to work with meets the following criteria.

• Offers competitive pricing
• Builds to your quality guidelines
• Has sophisticated development, production, and logistic capabilities
• Meets all the government rules and regulations on manufacturing and import/export
• Has a reputation of reliability and trustworthy
• Offers agreeable payment terms
• Has the capability of producing and shipping your products as quickly and efficiently as possible
• Possess the abilities and resources to communicate with you clearly during business interactions
• Offers high-value services such as design support and in-house package engineering
• Is nearer to the shipping port to avoid the cost of trucking goods from the factory to the shipping port

The key to finding a good manufacturer, remember, is to assess your needs with caution.

It is essential always to prioritize your requirements and objectives during the search.

Visiting China Factories

Online verification may give you enough information and confidence to choose your manufacturer.

If not, you may need to visit the factory in China to confirm if they are actually the manufacturer you want to use.

A factory visit will help you to:

• Know your manufacturer’s true capabilities
• Validate the credibility of whatever information you found online about the manufacturer
• Check if the manufacturer has applied ISO and quality control standards

By visiting the manufacturer in China, you get the chance to look into their organization and production processes.

You can even assess their maintenance process for equipment and working conditions.

Seeing how the manufacturer manages their factory can help you determine if the manufacturer meets your quality standards or not.

You can try to have a one-on-one interaction with executive management to reaffirm your decision to partner with them.

This can also be an excellent opportunity to foster a long-term and friendly working relationship with the manufacturer.

Please note that it is possible to find and transact with a Chinese manufacturer online purely.

However, it is best to take further due diligence if you’re seeking to establish a lasting relationship with your manufacturer.

You can do this by visiting the manufacturers’ facilities in China to ensure everything is in order.

While visiting China, ensure that you engage a third party to provide you with advice and translation.

Also, take a prototype or sample to help explain what you want.

Most importantly, don’t forget to review the Chinese culture and negotiating basics in China.

Alternatively, you can hire a professional sourcing, factory audit or inspection agent to represent your interest on the ground in China.

As earlier stated, many China sourcing agents can visit and review manufacturer facilities for you.

These agents are a lot cheaper than traveling to China.

Moreover, they are experts in this area.

They know exactly what to look for to verify the suitability of a manufacturer.

To ensure independence, try to find a sourcing agent or company with a foreign connection. Y

ou can search online via search engines or using China’s online marketplaces.

Include phrases such as ‘agent’, ‘inspection”, or ‘proxy’ in your search terms.

Cost of Manufacturing in China

No doubt, getting your product made in China is less expensive than getting it made elsewhere.

Regardless, you need to consider the total landed cost of the item you intend to outsource.

Regarding the cost of manufacturing in China, even experts concur that there are numerous additional considerations to be made.

Fortunately, once you learn how to work with Chinese manufacturers, you’ll better understand how the cycle works.

You’ll also know what the real costs of creating the product maybe.

It is crucial to know in advance the total landed cost of your product.

This helps you to stay in control of the costs of manufacturing the product in China.

So what does landed cost entail?

• Cost of producing the good itself
• Cost of shipping the good from their facility to the agreed destination
• Cost of quality control and inspections

You need to ask the manufacturer how much all of the following will cost as a whole.

As the buyer, you will have to ensure that you agree on a befitting price that will remain the same throughout the deal.

Like we’d mentioned earlier, Chinese manufacturers have a base price.

During negotiations, they can never offer prices below their baseline.

However, some manufacturers will offer you a specific price as a begging price.

Afterward, they will continue to haggle after they’re done producing your item.

To avoid this scenario, it is imperative to clarify that you won’t pay anything else from what you agree upon in the first instance.

Make this communication clear early at the negotiation table.

If you seek to get the best deals, we recommend outsourcing large batches of product manufacturing.

Usually, it is not viable to outsource small volumes of goods to China manufacturers.

Be that as it may, even SMEs can afford to buy items from China if they purchase as much as possible at once.

Here is a great tip: for your first dealing with a manufacturer in China, meet their MOQ.

This will ensure that you are content with the final output and that the negotiating process is as you would prefer.

How to Negotiate with a Manufacturer in China

Once you have found a suitable manufacturer and are satisfied with their capabilities, you’re ready to negotiate.

As mentioned earlier in this guide, finding a quality manufacturer in China requires strategy and due diligence.

Negotiations are a part of the process, and this, too, requires you to do proper homework and use the right approach.

These tips can come in handy in ensuring successful negotiation with Chinese manufacturers.

· Find a Good Go-between

It is known that language is a common barrier between foreign importers and Chinese manufacturers/suppliers.

Hence, if you want to strike a good deal with a China manufacturer, you must find a good translator.

Do your best to avoid communication breakdowns and misunderstandings.

You might want to review your discussion at the end of the meeting to ensure everyone understands what you’ve decided upon.

· Face-to-face is Ideal

With manufacturers in China, face-to-face negotiations work well than online negotiations.

If you are looking to manufacture a large batch of products, you might need to travel to China.

The personal touch will help you seal a good deal.

· Be Wary of Silences in Discussion

The Chinese don’t know how to say a straight no.

Usually, they will keep silent when they feel that they cannot meet your needs or demands.

If you make unrealistic demands, you’re likely to be disappointed with inferior products, delayed delivery, or other issues.

Silence, note, is a strategy of Chinese manufacturers to maintain their already low-profit margins.

Thus, it is quite essential to shoot your quality demands during the negotiations.

Don’t just try to scope out the lowest price.

· Ask for Samples

To ensure that the project is feasible, ask the manufacturer to make some samples.

Although you may not get exactly what you want on the spot, at least you will be able to gauge whether they can handle your project or not.

Learn about What Makes up the Cost of the Product

Due to the low-profit margins, negotiating with Chinese manufacturers is all about knowing the numbers.

Chinese manufacturers calculate product prices on a BOM (Bill of materials) basis.

A BOM is a list that manufacturers use to authorize the purchase of raw materials.

It is also used as a request form for materials from inventory for your order.

On top of the BOM price, the manufacturer will also add the operational, administrative, and labor costs.

They will also add their profit margin before giving you a final price quote.

During the negotiation, you should base your argument on the BOM and maybe the profit margin.

This is if you know what the material and labor costs are.

With this, you can easily determine the rate you should be able to receive on production.

Paying Chinese Manufacturers

The first time you contact your manufacturer, make a point to talk about the terms of sale.

You can choose FOB, which proposes the manufacturer to facilitate shipping the goods from their factory to the origin port.

On the other hand, you will bear the costs and risk of shipping the goods from the origin port to your final destination.

Aside from FOB, you can consider many other terms of trade depending on need and convenience.

You can choose CIF, CFR, DDT, EXW, CNF, etc.

For the payment terms, you are free to negotiate the terms with your manufacturer.

Notwithstanding, you need to understand that most Chinese manufacturers have a structured payment procedure.

They will pay 30% when placing the order and the remaining 70% when goods are shipped.

By paying the initial 30%, you’re providing the manufacturer with enough funds to source raw materials.

You can negotiate to pay 30% when placing the order, 50% or 60% when the goods are shipped, and clear the remaining after receipt of goods.

The best way to pay Chinese manufacturers is via wire transfer.

International wire transfers take place worldwide and vary from bank to bank.

Other payment methods that you can explore are letters of credit and escrow payments.<