Since we are now living in an internet age, hence sourcing any kind of products from anywhere in the world is no longer an issue. Due to this reason only, it is now possible to source a product of the right quality at the best price too.
Today, China has turned out to be one of the major sources of supply for almost all kinds of goods as they can offer all their products at an extremely competitive price and quantity that cannot be matched locally.
These are a few good reasons, why you must make outdoor products in China can be the best decision for all business companies all over the world.
- China is a highly populated country and therefore, the cost of labour is the cheapest in the world
- China has got maximum number of highly trained technical manpower in the world
- China has now developed an excellent infrastructure over the last few years
- They are capable of producing very high-volume products
- According to projections, the value of the Chinese yuan is expected to be 30 to 40% undervalued, making every export from China 30 to 40% less expensive than any possible American rival.
- China has a “dumping” policy. As a result, they offer a product for sale in any other nation at a price that is lower than what they would normally charge in their own country or below their actual cost of manufacturing.
Due to all these reasons, in the present-day economy, the concept of China sourcing becomes extremely relevant. China is today considered the greatest global sourcing destination, and various outdoor products that are produced in China can meet international quality standards.
It will, however, not be out of place to mention here that any Chinese sourcing company can play a very important role in overseeing all your sourcing interests in China and can make sure about the quality and also delivery of the outdoor products that you are planning to import from China.
What is the popularity of the outdoor products market?
The market is expanding together with the recognition of camping tourism. The market for outdoor products has also been fuelled by this. China’s outdoor products market has been seeing an expansion since February 2020.
After 2019, several businesses entered a phase of rapid development that has seen revenue increase by more than 100%. The sales growth surpassed a 160% year-over-year increase in the first quarter of 2022.
According to some data consulting firms, for the first time. the size of China’s core camping market will surpass 100 billion RMB in 2022
Outdoor power supplies have also gained popularity as a result of the desire for electrification in the camping industry Celebrity net worth.
Why outdoor products became so lucrative?
Outdoor and barbeque equipment sell quickly when the economy is strong and thriving as people tend to invite their friends over for fun gatherings. People choose to grill and host events at home during economic downturns since it is far more economical than dining out.
Outdoor goods are, however, always in demand, regardless. What better way to spend a nice evening than by grilling out for yourself, your loved ones, and friends or by watching a huge sporting event while a delicious steak is cooking in your backyard?
What steps are involved during the process of global sourcing?
The complete sourcing process to make outdoor products in China will entail the following 6 basic processes, all of which can be carried out with the highest level of transparency to minimize any risks associated with large-scale operations.
1. Analysis of all the products that you like to source
- Your team must analyse first. why do you want to outsource all your goods or services?
- Decide at what volume will you prefer to import your chosen goods, whether as raw material, a finished good, or any component, and also what are its packaging requirements
- Also, analyse the entire logistics requirements and also about license requirements, custom clearance permits, and various regulations that exist in China and also in your own country.
2. Assessment of the local market of China from where you like to import
- Make a list of all the best sources of all your products.
- Decide whether you prefer finished goods and then you must analyse the manufacturing process too.
- Analysing the customs, taxes, and other international trade rules applicable.
- Also, explore various modes of transportation for importing the products.
3. Gathering sufficient info about the supplier
- Compare the production costs, capabilities, and quality of each supplier.
- Either hire any sourcing agent or make a visit to the factory to check their products.
- Verify all the details regarding registration and license of the sourcing company so that you can minimize your risks if you want to make outdoor products in China to the maximum extent
4. Formulating sourcing strategy
- Decide whether you will source only for one time or it is going to be repetitive.
- Based on the cost of the item you must formulate your sourcing strategy so that you can evaluate your risks.
- Your plan must also specify whether you will prefer to work directly with your supplier, through a specific partner, or through a sourcing agent.
5. Bids evaluation
- If no middlemen are involved, then you can get a quote directly from the provider.
- You must compute the bid based on the unit cost of your product and also the payment terms.
- You must factor transportation costs into your unit price, as well as any expenses incurred to satisfy any applicable legal or customary requirements.
6. Handling negotiations and then finalizing the contract
- List all of your negotiation conditions after choosing the provider. These should include the purchase amount, discounts, transportation expenses, and payment terms.
- After perfect agreement on both sides, make sure your supplier is aware of your quality standards.
- Now you can request a sample from the supplier for your own verification.
- Once the sample has been verified, you can create the final contract, which both parties must sign.
You need to handle your activities to make outdoor products in China with proper timings and promises from the Chinese factory regarding their production plan so that it should match yours.
Having a sourcing agent in China can ensure that all your outdoor furniture will be of the best quality, at an affordable price, and also delivered well on time.