Expanse of private labeling in China

Private label products are the products manufactured by a company (1^st company) with the logo of the 2^nd company. While there are several advantages of private labeling such as reduced manufacturing costs, reduced investments, etc. there are several disadvantages too. Despite all the disadvantages, private label in China has grown with time. And if the economy of China continues to increase at the current rate, private labeling in China will continue to expand.

How private labeling works in China?

The concept of private label in China has existed for a long time now. However, it’s until recently that China is witnessing greater sales of private label products. So, how exactly the private label products are sold? Well, most of the suppliers in China follow the given steps while selling such products.

• At first, the buyer decides how the product would function. Hence, he/ she provides the supplier with details of features the product must have, list of standards that must be applied while manufacturing the products, applicable safety and security measures, reference samples, etc.
• Next, the suppliers start manufacturing the product as per customer’s given preferences. Using the products supplied by their subcontractors, the supplier starts producing the products.
• The last step involves assembling the parts and making the product ready for sale.

Other than ordering the supplier for a specific product, customers can also order ready-made customized products. They can go through several products available, hire a sourcing agent to negotiate with the supplier, and import the product to his country. Generally, buyers from western countries look forward to importing products from China. As the labor, raw materials, and manufacturing costs are higher in the western countries, it’s always easy to import cheap private label products from China. And that’s how China saw a growth in the market for private label products.

While private label in China has expanded with time, it is often heard that some suppliers do not apply international quality standards while manufacturing the products. Hence, buyers should always go for the trusted and reputed suppliers. It is always recommended that the buyer (you) should hire a trusted sourcing agent to do all the negotiations. As sourcing agents understand the market of China, they can help you grab the best deals on the products you purchase. Besides, you should also ask for a detailed report on the product manufactured (which will contain information about manufacturing processes, materials used, and every other necessary detail).