Find Manufacturers in China

The global manufacturing powerhouse.

What to Expect

Considerations for China

Risks & Opportunities

  • Imports to USA $146 billion
  • Increased risks
  • Irreplaceable opportunities

1.

Engineering talent

  • Complex product designs or “off-the-shelf” options
  • Electronics, plastics, high-end apparel, stainless steel designs
  • Low quanity orders possible

2.

Supply Chain Network

  • Mature suppliers with advanced capabilities
  • We have an uparalleled supplier network across broad range of industries

3.

Large Consumer Market

  • Build in China if you will sell to China
  • Taobao (Alibaba), JD.com, Tmall, Suning, etc.

Lessons Learned

Responding to Supply Chain Trends

01. Don’t go to China just for cheap labor

  • China’s labor rate has increased 1000% from 2000 to 2020
  • 25% cross-border import tariffs on most products
  • Go to China for robust supply network and top engineering talent

02. Diversify to reduce risk

  • Custom supply chain strategy solutions
  • Low volume strategy vs. high volume strategy
  • Newly expanding manufacturing ecosystems in alternative markets

03. Partner with a supply chain expert

  • We’re ready to guide you to an optimal solution. Let’s realize your product development together
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Mitigation Strategies

How To Diversify Your China-Dependency

1.

Dependency

All of your sourcing manufacturing and assembly is completed within China. You are paying appox. 25% import tariffs.

2.

High Value Manufacturing

Molds and speciality tooling sent to supplier in alternative country for core manufacturing. High volume and low cost parts continue to be supplied from China.

3.

New Market

All manufacturing is completed in China and the finshed componnts are sent to alternative country for final assembly. Possible to avoid Section 301 import tariffs.

4.

Transition

All manufacturing and final assembly is fully transitioned to alternative market. Some sub compenents or material may still be sourced from China by your suppliers.

Product Launch Strategies

Trends and Predictions

1.

Sustainable Products

  • Amazon “Climate Pledge Friendly” certification
  • 18 independent certfication options
  • Increased consumer demand, increased competitiveness

2.

US – China Tarrifs

  • Slow change expected over coming years
  • Do not delay implementing a smart supply chain strateg

3.

Pandemic Impact

  • Surging Ecommerce growth
  • Incresead opportunity
  • Incresead competition

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