In the post-pandemic era, as soon as the travel ban was lifted, the tourism market started booming. People around the globe went for treks and camps as well. This change has driven the outdoor products industry. Companies selling outdoor products like camping houses, huts, RVs, and tents progressed rapidly.
Along with this, China's outdoor products industry boomed. Businesses dealing in outdoor products started to buy from Chinese factories. It is as if sourcing outdoor products from China has become a new trend. If you are too willing to make outdoor products in China, you must understand how things work there. After all, Chinese business culture is quite different and there are lots of outdoor products suppliers in China.
Sourcing outdoor products from China
Today, it is possible to source any product from anywhere in the world. However, since no other country can beat the quality and price of Chinese manufacturers, businesses around the globe is depending on China for their product manufacturing needs.
China has eventually emerged as one of the major sources of acquiring all kinds of products and outdoor products are no different in this regard. Before you go ahead and make outdoor products in China, it is good to know how manufacturing units there are making such affordable items.
Here are a few reasons why China is one of the best sourcing destinations for outdoor products in terms of quality and price:
Big manufacturing units have been developed in China over the years, and these units can produce high-volume products easily.
China is highly populated, and thus there is no shortage of laborers. Also, the labor cost is extremely low.
The technical manpower in China is well-trained.
Chinese currency is undervalued by 30 to 40 percent. This means every product produced and exported from China is 30 to 40 percent cheaper compared to any American competitors.
China acts as per the dumping policy at the national level. This means, they sell products to other countries at a price lower than the price they sell in Chinese market.
In simple words, whether it is about sourcing outdoor products or any product for that matter, China surely proves to be the best sourcing destination. However, to ensure the transaction gets completed smoothly, it is advised to hire a product sourcing agent in China.
Well, this is not a compulsion, but a very strong recommendation. Even businesses that are dealing with Chinese manufacturers for years approach them with the help of sourcing agents. If this is your first-time sourcing products from China, hiring a sourcing agent will make your work much easier.
Steps involved in sourcing outdoor products from China
The sourcing process of any outdoor products from China usually involved the following 5 steps. These steps are carried out to ensure proper transparency and to minimize the risks associated with large-scale operations.
1. Complete analysis of products that you want to import
You and your team will first need to analyze why exactly you must outsource the production part. Next, you need to take decisions concerning the volume of orders. Also, decide how you want to receive the product – in the form of raw materials or finished goods. Lastly, figure out how the packaging should be, what licenses you will need to import the product, customs clearance permits, and the rules of China as well as the importing country.
2. Assessing China’s local market and manufacturing units
Your sourcing agent can help you in doing so. Once you know what you need to produce, why you need to produce and how much you need to produce, it gets easier to find a suitable manufacturer. Your sourcing agent will compare the production capacity, quality of product, and cost of different suppliers.
Moreover, the sourcing agent will even take care of China quality control. If needed, sourcing agents involve third-party inspectors to check the product while in process, and even after completion.
3. Make a sourcing strategy
Before placing any orders, you will have to make certain decisions. This might include deciding:
Will this sourcing of products be a one-time thing or a regular thing?
Will you be working independently, or hire a sourcing company?
4. Evaluating the cost price
You will first have to go through all the quotes received from different suppliers. Next, calculate the price per unit considering the payment terms. The cost price of one unit must include:
Manufacturing cost
Transportation cost
Paperwork and legal costs
5. Going through negotiations and signing the contract
Once everything is sorted, the last part is about negotiating terms with the manufacturer. Usually, your sourcing agent will negotiate on your behalf. Terms concerning purchase quantity, discounts, costs of transportation, and payment will be discussed.
During the negotiations, quality parameters should be communicated to the supplier. You can even ask the supplier to give you a sample of the product.
Hiring a sourcing agent for acquiring outdoor products from China
When you want to make outdoor products in China, it is best to work with a sourcing agent to avoid expensive mistakes. While selecting the agent, you must keep the below-mentioned points in mind:
1. Location of the agent
When you will go through the list of sourcing agents, you will be able to check their locations as well. Usually, it is best if you work with an agent who has a local presence. These agents know the language, business trends, and rules and regulations concerning outdoor product sourcing. However, even if you choose to work with a foreign company, ensure they have an office and well-trained staff working in China. A sourcing agent handles a lot of tasks, and for most of them, he/she will have to be present in China.
2. Experience
Only an agent with years of experience will have enough contacts to handle your order effectively. Someone who has been in the market for years will know how to find suitable manufacturers as well as negotiate with them on your behalf.
3. License and certifications
Chinese laws are very strict, and one cannot work without a proper license in the country. When you plan to hire a sourcing agent, make sure you ask them to show their license.
4. Expertise in the product you are sourcing
There are many different agents in China, and all of them have different expertise. To ensure the agent you are hiring has expertise in your product ask him/her to show records of previous orders, or provide you with buyer references.
5. Good and professional work ethics
You must have heard that some agents take fees from the manufacturer as well. Such agents might not always take decisions in your favor as far as product quality is concerned. So, ensure the agent has a good work ethic and solely acts on your behalf and in your favor.
To summarize it can be said that you can easily make outdoor products in China, especially if you have a reliable and enthusiastic sourcing agent working for you. So, just like you are going to take time in finding the right type of manufacturer, take time to look for a trustworthy sourcing agent as well. Also, be rest assured to get desired product and product quality. The outdoor products market in China is huge and thus finding what you need is possible.