Private Label Manufacturer in China

Subcontracting in China has allowed businesses to create quality products. They can do this without investing in costly plants.

We call it private labeling. It has become a popular strategy for entrepreneurs looking to build unique brands. However, not everyone can find the proper manufacturer to turn product concepts into reality.

For this reason, this guide is helpful. It helps you find dependable companies in China that do private labeling. It will emphasize practical information and include tips from industry experts.

What Is Private Labeling?

Private label manufacturing means hiring a factory to make goods under your name or brand. You can provide specifications, and the factory will handle the production. Thus, it is unlike regular buying from wholesalers.

Suppose you have designed a fantastic new water bottle. However, you don’t have the capital to invest in its production. So, you find a factory that already makes water bottles. You tell them exactly what your bottle should look like, with a unique logo or design.

The factory makes the bottle for you, but they put yours instead of their brand on it! This way, you can sell your water bottle brand without needing your giant factory.

We also have a separate guide on everything you must know about white label products in China.

Benefits of Choosing Private Label Manufacturers from China

China is a popular choice for private-label manufacturing for many reasons.

1) Cheaper costs

Image Source: Pexels

Chinese factories have lower prices, especially for large orders. They face lower production costs due to cheap labor and material expenses.

2) Proven track record

Chinese factories have experience in many industries. It ranges from electronic gadgets to textiles.

3) Variety

Chinese manufacturers can produce almost anything, giving you flexibility in product selection. You need to choose the right factory for private labeling.

4) Customization

Many Chinese manufacturers can adapt to specific designs, even for small orders. Thus, you can expect extensive customization options for private-label products.

5) Flexible Output

Private label manufacturers in China can handle large and small order volumes. Adjusting order quantities without changing prices or lead times is very helpful.

Different Ways to Find Reliable Private Label Manufacturers in China

You can find private label manufacturers in China using various methods. The choice of a private label manufacturer is important in enhancing the quality of the produced items and organization. Here’s a streamlined guide:

1) Work With Sourcing Agents

So, what is a sourcing agent?

They can link you with the right manufacturers. You can never know their importance until you interact with them. Sourcing agents deeply understand Chinese local markets.

Key benefits of hiring sourcing agents include;

• Access to pre-vetted manufacturer networks.
• Help in local business practices.
• Support for quality control and logistics.
• Reduced risk of miscommunication or fraud.
• Extra services, like quality inspection.

You must look for sourcing agents with experience and excellent track records. At OwlSourcing, we have better connections with private-label manufacturers.

2) Use Online B2B Platforms

Online marketplaces have thousands of manufacturers for a single product. They include Alibaba, Global Sources, and others.

You can find and compare private label manufacturers available on these online platforms.

Tips for effective use of B2B platforms:

• Use specific product keywords and filter your search by verified suppliers
• Check supplier profiles, including business history and customer feedback
• Request detailed quotes and samples from multiple suppliers

Refrain from being caught up by something that sounds too good. Most of these suppliers aren’t manufacturers but trading companies. Thus, you must ask for factory information and certificates. It will ensure you’re dealing directly with a manufacturer.

3) Visit Trade Shows

Trade shows create ways to meet producers one-on-one and see product samples. Consider visiting a specialized industry event. 

Don’t just go to the Canton Fair in Guangzhou. Many other cities in China hold annual fair shows. You must keep regular updates about the trade fairs in China.

Advantages of attending trade shows

• Direct interaction with manufacturers.
• Hands-on product inspection.
• Opportunity to negotiate deals in person.
• Insights into industry trends.

Plan your trade show visits well in advance. Many manufacturers offer pre-show factory tours. They give you a deeper look at their operations.

Key Trade Shows in China to Find Private Label Manufacturers

Choose the Right Private Label Manufacturer in China

A) Verify the Manufacturer’s Background:

• Make sure the company is not a middleman, a company operating under the real manufacturer’s brand.
• Satisfy the need for realizing the manufacturer’s specialization in certain product categories.
• Evaluate the size of their business activities.

B) Ask Key Manufacturing Questions:

• Ask for references of previous projects so that you can determine the extent of the company’s experience on top of evaluating the quality of the products.
• As a rule of thumb, demand their business licenses and quality certificates to be sure about the company’s legal standing and business specifics.
• Get to know how many products are required before an order can be processed, how long it takes for samples to be made, and how payments are to be made.

C) Oversee Sample Production:

• It is equally important to outline the manufacturing requirements by putting them down in the signed contract.
• Acquire some items to check their quality and to see if they are up to the standard of mass production.

D) Monitor Manufacturing Progress:

• Ensure that there is some level of communication on how production is being scheduled or being undertaken I suppose.
• Carry out post-production inspections so that you can be sure that your products have met your expected quality.

E) Conduct Pre-Shipping Inspections:

Ensure that quality checks and packaging are well done before the products are picked for shipment.
It is crucial to guarantee all the indications related to private labels are achieved to avoid compromising product quality.

Checking Quality and Compliance of Private Label Products

After finding potential manufacturers, you can verify their quality standards and regulatory compliance. You can do it like this;

1) Request Samples

Assess material quality, craftsmanship, and performance. Feel free to ask for multiple samples. You can read our post – what should you expect when shipping samples from China?

2) Conduct Factory Audits

Visit in person or hire a third-party inspector. You must check production capacity, working conditions, and quality control processes.

3) Implement Quality Control

Set clear standards and perform regular inspections during production. Consider hiring a local quality control agent for ongoing oversight.

4) Verify Certifications

Ensure the private label manufacturer has relevant industry certifications.

For example, the FDA requires registration for food products. The CE marking is needed for electronics sold in Europe.

Many Chinese factories specialize in specific product types. Thus, you can choose a manufacturer with experience in your product type.

Negotiating with Chinese Private Label Manufacturers

Effective negotiation can lead to better terms with private label manufacturers. Here is how to do it;

1) Start with a reasonable price

Research market rates to avoid starting too high or low. You can benchmark prices from multiple suppliers to understand the realistic range.

2) Know the full cost

Consider shipping, taxes, and possible tariffs. You must consider hidden costs such as inspection fees, exchange rates, and insurance. Ensure you know the total landed cost to make informed decisions during negotiations.

3) Compromise

Be ready to give up something. Negotiating with companies often involves compromise. Identify your non-negotiables and areas where you have flexibility.

4) Build relationships

Personal connections can lead to better terms and priority treatment. You must learn Chinese business culture and build guanxi (relationships).

5) Use professional translators

Ensure everything is preserved during essential discussions. A skilled translator can provide context that might be crucial for successful negotiations.

Remember, Chinese manufacturers often quote higher prices to foreign buyers. Having a local agent can help you secure more competitive rates.

Managing Production and Quality Control of Private Label Products

Maintaining product quality throughout production is critical. Follow these tips;

1. Create detailed product specs. They should cover all aspects of the product, including materials and packaging. You should know how to customize product packaging for Amazon FBA private label products.
2. Implement a quality control plan for private label products. You can define inspection criteria and frequency.
3. Use production milestones. You can set checkpoints throughout the manufacturing process for approvals.
4. Consider on-site representation. You must have someone at the factory to catch issues early.
5. Plan for defects commonly found in private-label manufacturing. Agree on acceptable defect rates and how to handle subpar products.

Sometimes, Chinese factories can have busy seasons (like Chinese New Year). So, you must plan the production schedule to avoid these peak times. Doing so will get you better attention and lower costs.

Read More:

• China Factory Distribution in East of China
• The Ultimate Guide to Finding Apple MFi-Certified Manufacturers in China
• A Beginner’s Guide to Importing Bamboo Textiles from China!
• Tips to Buy and Import From China to the USA

Final Thoughts!

Private labeling can transform your brand. You’ll have unique items at competitive prices without making significant investments.

Finding private label manufacturers in China takes effort, but it’s worth it. There are many ways to search, but be careful because not all manufacturers are trustworthy. Expect challenges and obstacles during your first attempt.

You can hire a professional China sourcing service to guide you. A sourcing agent can locate reliable private-label manufacturers. With this, you can avoid wasting time and resources on unreliable suppliers. It can ensure a smooth launch of your private-label products.