I’ve been running a contract manufacturing business in China for the past decade, and I've got some inside info for you, especially when it comes to product assembly services in China.
It's all about getting your product out there without breaking the bank. And here's the secret: Many businesses have found that one of the easiest ways to save money is by trimming down product assembly costs.
So imagine saving some serious cash while still getting top-notch quality. Sounds good, doesn't it? That's the path many successful companies took, and boy, did it pay off for them!
For those who prefer video content, here’s a video summary of what you’re about to read below.
Why China For Product Assembly Services?
There are a few really good reasons for this. The main two are:
The costs, when compared to other assembly services in other parts of the world.
The control you have over the whole manufacturing journey, even when you let a Contract Manufacturer from China handle everything for you
The Control You Have Over Your Own Product
When you send your design to be produced, there are so many decisions involved that you can start losing some of your original direction quickly. For example, the factory that you chose may not have the machinery for processing and molding the material for your product, so you forgo that material there.
And if you’re thinking: “If that happens, I’ll just find another factory that can do it.”
The catch here is that many factories in China might not even tell you they’re sacrificing quality because they don’t want to lose the business. By the time you receive a substandard prototype and realize what they’ve done, they’re already off to working with someone else.
The next logical question is: “Then how do so many high-quality products come out of China, how do other brands do it without these issues?” And the answer is knowing who to work with in China.
The Total Costs
Unlike the rest of the world where you would have to pay an arm and a leg to get your product manufactured, the product assembly service in China is one of the more affordable options.
Products manufactured and assembled in the US cost a whopping 5% more than in China. That 5% could be put to better use if you choose to have your product made in China. We all want our products to be of higher quality than the other products in the market. What if we could ensure this quality while also saving some money? That money can go to advertising, better packaging and even used to get better distributors who ensure your product ends up on shelves where they actually get sold. The possibilities are endless.
Companies Who Have Their Products Manufactured and Assembled in China
One of our key suppliers would always joke about bringing Cubcoats (a 2-1 in wearable plush animal product) to life – she’d say that it was easier to give birth to a baby human than one of these ‘cubs’.
But, eventually we made it happen.
Starting with one of the biggest names in the world right now, Apple is leading in the tech game with being the world's first $3 trillion company. Apple also holds the title of being the first world's first company to reach $1 trillion and $2 trillion. The company is known for having its exclusive software but what about the hardware?
When you buy an iPhone and flip it around, what does it say? “Designed in California, Assembled in China”. If Apple can have its products assembled in China, what is stopping you from doing the same?
Yes, you don’t have the infrastructure Apple has, but you can follow the same formula. Or better said, your contract manufacturer can.
2. Ivanka Trump
Ivanka Trump's popularity among American conservatives has significantly boosted the sales of her self-titled brand. As the daughter of the 45th President, she already had a powerful presence, but her dad's move into the White House in 2016 rocketed her brand to new heights.
Her brand includes a vast range of items - from shoes, bags, and dresses to perfumes and baby furniture. And interestingly, all her products begin their journey in China, where they're manufactured and assembled from scratch.
Haier exports its products to retailers all over the world and has all of their products manufactured in China.
The company sells all types of electrical products from TVs, to washing machines and even airfryers. They are really a household brand and if anything can be said about them, their products always come out on top.
4. American Apparel
American Apparel Inc. is a California-based, online-only company. It is famous for having a cult following of teens that resonate well with the Gen-Z target market. They sell apparel, jeans and bags. Just like all the other contenders on this list, American Apparel, too, has all its products manufactured and assembled in China.
This shoe brand has been every teen’s go-to since well over a decade now. Converse has a whole community of dedicated and loyal consumers who are not afraid to rock these shoes to any event, be it formal or casual.Converse too has all its shoes and products manufactured and assembled in China.
Best Product Assembly Service in China
Now that we have established how some of the most successful companies in the world have their product assembly services in China, let’s talk about you. Having your product assembled anywhere really, can be an intimidating task, especially if you have no prior experience.
For this reason, you need an assembly service that:
Has experience in assembling products on a massive scale
Has a good reputation, especially when dealing with international orders
Did you know that MorphoMFG has glowing reviews from clients who outsource their entire production lines to them? The CEO of EcoBloom, outsourced the design, prototyping, molds and mass production for Ecobloom to MorphoMFG.
Cubcoats, the child apparel brand also has nothing but great things to say about MorphoMFG, saying that you do not need to find a manufacturer in China, you need to find someone who can put all the pieces together for you and MorphoMFG is that company.
Humble brag, but if you see what others say about us, have read, watch, or listen over at MorphoMFG reviews page.
The Pros and Cons of Product Assembly in China
So, here's the scoop: China isn't just about churning out cheap stuff. They're really putting in the work to up their game and make products with more value. Even when their cheaper exports dipped a bit back in 2015, they didn't miss a beat, especially when you look at the post-COVID numbers.
According to HSBC, China's transport equipment and machinery sectors expanded by 46 percent (a considerable rise from 21 percent in 1995). But before you make the transition to Chinese assembly, it's crucial to weigh the benefits and drawbacks.
Pros of Outsourcing Product Assembly to China
Low assembly costs: The Chinese government encourages foreign companies to use local factories, cutting down your expenses.
Open to smaller brands: Unlike many American manufacturers, Chinese producers are willing to work with smaller businesses. If you know who to work with, the Chinese manufacturing landscape is perfect for start-ups.
International expansion: Manufacturing in China can be a gateway to expanding your business into growing Asian markets. In our case, we specialize in helping Western entrepreneurs capture the North American market.
Faster production: Thanks to lower labor costs and good working conditions, Chinese factories can produce high-volume output quicker than many of their global counterparts. That said, we like to focus on custom, high-end products rather than quantity.
Cons of Outsourcing Product Assembly to China
High minimum order quantities: Some Chinese factories require large order minimums, owing to economies of scale and tight profit margins. Your contract manufacturer should have relationships that would help a lot here.
Communication issues: The language barrier can pose challenges in negotiations, some contract manufacturers that are based in China are fluent in both English and Mandarin, which is the case with MorphoMFG.
Stigma associated with "Made in China": Some consumers view these products as inferior to those marked "Made in the USA" or "Made in Italy, and similar, but we’re witnessing how this is changing as time goes on.
Frequently Asked Questions
What information should I have before finding an assembly service in China?
Having a definitive strategy from the start is crucial. Having the right info helps you avoid some nasty pitfalls along the way too. There’s much to say here, and it all depends on what exactly you want to do. Learn more here.
Is assembling my product in China really worth all the effort?
Of course it is. Just take a look at our reviews page. We’ve helped hundreds of Westerners bring their ideas to life & find success in their markets. That said: 30% of our own clients waste an average of $50,000 before coming to us. And we’re just one contract manufacturer. It’s all about knowing the right people.
What about IP protection, should I worry about this when going to China?
The simple truth is that successful, good ideas will get copied. That’s the end of that story. So what can we do? We can make sure we have a head start, and take certain steps to ensure that the time between your launch, and the launch of the copycat is as far between as possible. One of the ways that we’ve had major success with is our Component Control Method. To learn more about it, read Top 5 Reasons Why Product Ideas Fail in China.
So, schedule a call with us and get it done in the right way - with MorphoMFG!