August 3, 2022

Product Assembly Services In China – A Complete Guide

A Quote about Product assembly services in China,

“Perfection seems sterile; it is final, no mystery in it; it is a product of an assembly line.” - Dejan Stojanovic

If you are thinking of starting an enterprise or simply have an idea that you’d like to come to fruition, then you are at the right place. For any product to be sold to a consumer, there is first the entire process of ideation, design, finding manufacturers, product assembly, distributors, and finally retailers. It sure is a multiple-step process but a few tweaks here and there can really get you ahead of the game with Product assembly services In China by MorphoMFG.

What we are talking about is simplifying the process. Get your product right to the shelves of the retailers, without any unnecessary hassle. The easiest way around this is to limit your expenses and rule out any costs that are either way over budget or are easily avoidable. In most businesses and ventures, the first cost people eliminate is product assembly costs. They do this for a number of reasons, but 9/10 of businesses will tell you they cut this cost because they found a cheaper product assembly service somewhere else.

Think about it, if you could find a way to save some money and still have your product made with quality service, would that not be better? It sure was for a number of companies who went on to profit heavily. 

For those who prefer video content, here’s a video summary of what you’re about to read below.

Product assembly services In China

Why China For Product Assembly Services?

There are a few really good reasons for this. The main two that we can suggest is

  1. The control you have over your products 
  2. The total expense, when compared to other assembly services in other parts of the world.

Both are credible points when talking about producing and manufacturing the product you want. Let's talk about this.

The Control You Have Over Your Own Product

Let's be real here, when you send your design to be produced, there are so many factors and decisions involved that you start to lose some of your veto power over your own product. These instances can come out of the blue and strike you when you least expect. 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. Already, you have compromised on one of the main components of your product.

China is known as the factory of the world. The factories located in China are far too modernized and way too adaptable for this to be a problem. Chinese manufacturers and factory owners also are much better people to work with when it comes to who has what to say in the whole process. They will respect you as the owner and will consider what you have to say. Thai is because they will recognize you as the one who makes the decisions. 

The Total Expense

Unlike the rest of the world where you would have to pay an arm and a leg to get your product manufactured, while Product assembly services 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

Our key supplier Mrs liu would always joke about bringing Cubcoats 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.

1. Apple

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, or any Apple product really, it says right on the packaging ‘Designed in California, Assembled in China.’. If Apple can have its products assembled in China, what is stopping you from doing the same?

2. Ivanka Trump

Ivanka Trump’s reputation with America’s conservators is a huge factor in the sales of her brand names after herself. The daughter of the 45th President, already having so much clout already, experienced a substantial growth in her brand when her dad took to office in the White House in 2016.

Her brand produces everything from shoes, bags, dresses, perfumes to baby furniture. All of her products are manufactured and assembled in China, right from the start.

3. Haier

Everybody with an AC or a refrigerator knows about Haier. Haier exports its products to houses and 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 Los Angeles, California-based online-only company. It is famous for having a cult following of edge teens that resonates 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.

5. Converse

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 look at the details. 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

  1. Has experience in assembling products on a massive scale 
  2. 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, all of it to MorphoMFG. Not only was the CEO impressed with the finesse of how his company’s products were manufactured and assembled, but also with now efficiently the whole production process was continued.

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.

So why not trust a name that has been around since forever and still holds up the quality in their work, despite working on such huge projects with the leading brands in the world. 

The Pros and Cons of Product Assembly in China

Your brand may advance and reach new heights by outsourcing production to China. This does not imply that China is only good at producing cheap goods, though.

A continual effort goes into producing items with better value. Even if its lower-value exports actually decreased in 2015, 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.

Pro: Low assembly cost

As established before, Chinese services in manufacturing and assembly are peanuts compared to other places in the world. This is because the Chinese government itself encourages forgein companies to come and assemble their products in Chinese factories.

They’ve done this to increase the country’s GDP and also to make China a competitive outsource for well-established companies. Low assembly cost adds to the allure and attracts these companies even more. 

Con: High minimum order quantities

There may be large order minimums at some factories. This is because they frequently rely on economies of scale and have small profit margins.


This is quite understandable because the Chinese have to make their profits somehow. If you're looking for a one-off or tiny production, you might have to search elsewhere. However, this won’t be a problem if you’re looking to get a big batch of your product assembled with product assembly services in China.

Pro: Accommodating to smaller brands

Simply said, many American manufacturers like working with brands that have significant distribution agreements or large viral followings. Actually, not every startup makes it out of Shark Tank. Smaller businesses or innovative goods may find it challenging to get the attention of American manufacturers.

Meanwhile, Chinese producers are usually eager to collaborate with tiny and inexperienced businesses as long as order minimums are reached. You don't need to own a well-known brand like Gucci to receive excellent service from a Chinese producer.

Con: Communication gap

The language barrier might pose problems on a macro level. For many Westerners, learning Chinese is challenging since it's not a language you can just pick up from airport leaflets. Although most manufacturing partners speak some English, it's not a good idea to rely only on that when negotiating intricate manufacturing contracts. The option of having a translator may be really helpful.

Did you know that MorphoMFG does not really have this problem. They have representatives that speak fluent English and therefore you will be aware of all the details of your business as they are being discussed. 

Pro: Expansion internationally

Asia's market has grown significantly, and it is expected to reach even newer heights. What better way to start your manufacturing operations in China if you want to grow your business and sell items to customers in Asian markets?

Expansion into the Chinese market might increase your business’s potential, if done properly. Using Chinese manufacturing also simplifies the logistics of importing goods into China and other Asian countries.

Con: The stigma of “Made in China”

The phrase "Made in China" carries a certain negative connotation, whereas "Made in the USA" or “Made in Italy” items are seen as superior. Whatever your opinion of the truthfulness of these claims, it is a fact that many customers appreciate domestically produced goods and are frequently prepared to pay more for them.

If the margins you would make by producing in China are small, you might want to take this into account. Consider the possibility that you might be able to offer your product at a higher price point with the desired "Made in the U.S." label after all the costs associated with shipping, travel, and translation have been included. 

Pro: More results in less time

Some domestic factories in the United States, and mostly all over the world, have capacity and schedule restrictions, while their Chinese competitors never do. Again, low labor costs are quite important in this business.

You can finish output that demands a high volume while spending less money than domestic facilities can. While there are undoubtedly moral concerns when it comes to the cheap labor in China, the majority of workplaces are not at all exploitative. Better working conditions mean faster results. Faster results mean you launch your product faster. Faster product launch means you will make your sales and profits in no time at all. 

Frequently Asked Questions

What research and information should I have before finding an assembly service in China?

Have a definitive strategy, understand the costs, and have non-negotiable clear communication. Out of all of these, having a definitive strategy right from the start can give you a boost in your way forward.

Any new initiative must have a solid plan in order to succeed in product assembly services in China. There are a few factors to consider after agreeing to contract product assembly to China.

Bringing together all of your business partners, shareholders and executive officials is the first stage. Make sure that everyone acknowledges the advantages of outsourcing assembly. Set establish a team to oversee the project as soon as all the leaders are on board.

When examining the financial advantages, keep in mind to plan for the future. The success of your firm/company depends on a long-term strategy.

 

Is assembling my product in China really worth all the effort?

This depends on you and your preferences. China offers the same, if not better services, in overall investment. Companies like Apple, American Apparel and others have seen the benefits it produces and continue to get their goods manufactured in China.

Ultimately, this is a decision that is purely yours and your partners to make. If the appeal of less money and good quality sounds good to you then China is the best option to get your products assembled. 

Therefore,
Product assembly can seem a little jarring. However, if you know what you are getting into, then it really is just as easy as 1, 2, 3. 

About the author

Josh Fairbairn

CEO of MorphoMFG, fluent in Mandarin, Blogger, and Youtuber. Josh loves interesting materials and the craftsmanship that goes into creating innovative products - watches, tech, games, whisky, leather, wood, blockchain & electronics. Josh and his team in Guangzhou, China are striving to create (& consume) the world’s highest quality products. Partnering with entrepreneurs globally to help solve the world's problems - whether small or large.

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