China is a vast country and the most populated in the world. The country has opened itself to international markets for over 2 decades now and has been successful in giving tough competition to big players in various industries.

Outsourcing to China

It has been estimated that the outsourcing in China is growing by 30 percent annually. Many industries have shifted their base to China. The country provides scope for innovations and cheap labor, thus bringing down the research and product cost drastically. You can produce a greater volume at an astonishingly low cost. With a sourcing company as your partner, manufacturing in China should not be a tough job. You can, in fact, crush competition by offering your products at relatively cheaper prices.

China Sourcelink, a sourcing company based in Los Angeles California and China is a good option while you are looking at outsourcing to China and product sourcing.

Benefits of outsourcing to China

If you are looking to cut down costs and increase your profit margin, the easiest way is outsourcing to China. Some of the benefits are outlined here:

1. Cut down on labor costs

The labor in China is cheap due to the huge population base. In fact you can save up to 80 percent on labor, compared to your home country. Labor costs make up a major portion of the total expenses. Outsourcing to China lets you take an advantage of the cheap labor market available in the country. Especially if your manufacturing process is labor intensive you are sure to benefit. Even Apple outsourced their production on ipads and iphones to China with a company called Foxconn, which are one of the few famous private label manufacturers who provide electronic manufacturing services and OEM services. They make the PCB in China and assembled the whole product in a town called Shenzhen, which is a well-known place for sourcing electronics and creating prototype in China. Thereinafter they import from china for the finished products.

2. Easy route to gain access to the largest economy

As mentioned earlier, China is the world's most populated country. The economy in the country has been consistently growing. You cannot access Chinese market directly, the road is not so smooth as you can imagine. The culture and business practices are very different in China compared to any western country. However when you have an outsourcing partner, this should not be so difficult.
China Sourcelink is a reliable sourcing company that you can consider to partner with.

3. Incentives

If you are outsourcing to China, you can avail the many incentives that are offered to foreign companies. This makes your growth rate rapid. The Government of china has also been very supportive to the outsourcing industry. Funds have been allotted for skill development training and infrastructure development. Loans are also made available to the outsourcing companies. English language learning and usage is also being given priority in the recent times.

4. Enter Asian Market

If you are operating in China, you can enter the whole of Asian market with ease. Asian market is very large and you have high chances of growing your business in different countries. This becomes easy as you would have already proven yourself in the Chinese market. Enter India, Sri lanka, Japan, Korea and Europe as well.

5. Market Share

If you are not outsourcing to China, It will be difficult to offer your product at a lower price than your competitors who have been outsourcing to the country. People look at the price of the product- the top concern while shopping and would be inclined towards those that come with a lesser price tag. Here, you are going to lose the market. You don't want that to happen right? Consider partnering with a  trustworthy sourcing company in China such as China Sourcelink and start outsourcing to China. Be the market leader!

Challenges to take on while outsourcing to China - Why you need a sourcing partner

1. Product Quality may not meet expectations

The products and the manufacturing procedure in China may not meet the safety standards  in your home country, though China is okay with it. If ignored, this may bring huge losses to you. If you are alone trying to handle everything in China, be ready to take all responsibility for the final outcome. You may not get a product with the expected quality and safety measures. This may harm your business reputation!

It is therefore advisable to have partnership with a sourcing company in China to monitor the quality and manufacturing process.

2. Culture and language barriers

If you are outsourcing to China this is one challenge you will find difficult to take on. There are huge differences in the cultural practices and finding fluent speakers in English language in all industries may not be possible. If you are an American planning to do business in China, it certainly would not be an easy thing for you. Understanding a different culture takes time and you have to be flexible enough to accomodate it. The style of communication also greatly varies. While you may be straight and outspoken, the Chinese are mostly quiet.

Your sourcing partner can handle this for you as he is aware of the Chinese culture and the business practices.
3. Fake products
Mockups are one of the few problems you need to be aware of when it comes to sourcing products from China. Chinese market has a lot of fake products. You might not find respect for copyright here too  that may be a big blow to any business. Your innovation idea has all the chances of getting copied, so you need to be extra cautious. Partnering with a sourcing company such as China Sourcelink can assure you of no such risks.

4. Time taken may be too long

Strikes and turnovers are very common in China. There are also supply chains that you have to deal with while outsourcing to China. This is a lengthy procedure and you need to wait for a long time. You also find operational issues and energy shortages that are again hindrances for quick and smooth  production. You can avoid these problems if you have a sourcing agent in China.

5.Increasing labor costs

Chinese companies, in the urban areas have begun to demand more, especially in places like Shanghai. It is hard to deal with this issue unless you have a sourcing partner.
China is an amazing place with a lot of skilled people and cheap labor. The economy is also consistently seeing an upward trend. However there are a lot of issues involved and you need to be extra cautious while outsourcing to China. While you can gain advantage through cheap labor and skilled technicians, there are huge risks as well. Your company reputation matters the most to you, so you cannot afford to take big risks! You need a smooth and safe transaction and there's nothing better than having a partnership with a sourcing company in China.

You can rely on a reputed sourcing company like China Sourcelink that help you source different products and outsource your production to China. If you are doing business in China, the company also offers premium service in sourcing different products from China besides outsourcing your manufacturing process.

Benefits of partnering with a sourcing agent

  • A sourcing agent will source products for you. This saves your time and effort.
  • You will be dealing only with verified suppliers. No room for fraudsters.
  • Your agent will continuously monitor quality. So have no fears of sub- standard materials or quality. No mistakes!
  • Your partner agent will also manage shipment. It is not necessary that you be present in China.
  • A sourcing agent will also take up the responsibility of finding a capable R&D team to bring life to your ideas. You need not have to look anywhere else!
  • Be assured of timely delivery as the agent will follow- up on your orders.
  • You reap the benefits of expertise and market knowledge of your agent.

China Sourcelink, based in US and China is a reliable sourcing company trying to bridge the space between the buyers in international market and the manufacturers in China.

Outsourcing to China is a good idea. You can gain a competitive advantage over others in the industry. The huge labor market and the technology is tempting and have no doubt, you can grow your business in China! You only need to be aware of the business practices, culture and the local market to be successful in doing so. However that doesn't seem to be so easy!

It is always safe that you enter into a partnership agreement with a trusted sourcing company. This protects you from damages and risks. You will have no trouble with your business in China as your agent will be handling everything for you. Your presence in China is also not required. Just be clear with the terms and stay stress- free! While your agent partner sees to it that the process goes as per schedule and meets international standards, you can sit back and see how your business grows! Take pride in the quality of your product that you can now offer at competitive rates. You will be happy for your decision to partner with a sourcing company.

The fee you pay to your sourcing agent is very negligible, considering the huge benefits for your business. Partner with a sourcing company today and grow your business at a stunning pace!!

Author's Bio: 

Torsi is a professional blogger.