Tag Archives: Manufacturing In China

Meet David Chitayat, Group CEO of Genimex.

David has been in the contract manufacturing business for the last 15 years. This great video with our partner, Tracy Hazzard, highlights how we are turn-key with supply chain management and product development. Great overview of who we are and what we do!

When Factories Have A Choice Between Robots And People, It’s Best To Start With People

Robotic arms weld vehicle frames in a weld shop at an automotive manufacturer in China. Photographer: Qilai Shen/Bloomberg

Robots can be flexible in some ways but are not yet infinitely flexible like humans are. Great article Written by Anna-Katrina Shedletsky  entailing the choice between robots and humans for the manufacturing process. You’ll be intrigued.

It’s lazy to think that a manufacturing process is better just because it’s automated. While the effort going on right now at the Tesla factory in Fremont is anything but lazy, it brings into the spotlight one of the core problems with the simplistic “automation for automation’s sake” strategy: processes that aren’t stable to begin with cannot be made stable with robots.
Continue reading When Factories Have A Choice Between Robots And People, It’s Best To Start With People

Types of “Manufacturers” in China

When dealing with overseas manufacturing, you will encounter the following players: trading companies/importers, buying agents, sourcing agents, representatives, wholesalers and factories.

Let us dive into the different types of suppliers and what differentiates them:

1. Trading Companies/Importers

There are two types of trading companies: the low value-added versus the high value-added trading companies. They typically make money by adding a margin to the cost of the actual production costs, and usually deal with a wider array of product categories. Trading companies have local China offices with a team of project managers that can be helpful depending on the complexity of your product. In addition, they may have great relationships with factories and help with communication in Chinese.
Continue reading Types of “Manufacturers” in China

Manufacturing Consumer Goods in India vs. China

When it comes to choosing the best overseas manufacturer in Asia, two of the most common places for manufacturing are India and China. Both countries have very dynamic manufacturing capabilities and unique economic landscapes with proven skills, strengths and weaknesses that make both countries viable choices. However, it is imperative to weigh your choices carefully by considering specific external factors that will have an impact on your supply chain.

First, let’s review the economic landscape in India and China followed by five key factors that influence manufacturing in these two countries. Continue reading Manufacturing Consumer Goods in India vs. China

China & US Trade War – The Tariff Timeline (2018)

January 2018

President Trump approved a 30% tariff on solar panels and a 20% tariff on washing machines.

Mid-February

The United States Commerce Department had announced several ideas to fight China’s undesired trade practices, including a 24% tariff on all steel imports and 7.7 percent on aluminum. Continue reading China & US Trade War – The Tariff Timeline (2018)

UPDATE: March 22nd, 2018: President Trump Proposes $50 Billion in Tariffs on China

Top 10 U.S. trading partners for goods ($billions), year-to-date 2017

With the United States pulling back into an isolationist and protectionist stance and China extending its reach as a new global economic leader, who will come out ahead on the balance sheet as these two giant trading partners adjust their positions?

“The eyes of the world are turning to the East. A historic opportunity has opened up a vast strategic space for us to gain superiority. The drawbacks of capitalism have provided China with its chance to ride to the world’s rescue. China offers a completely new option for solving the common problems of humankind. This new option is called, The China Solution.” {Front page editorial Jan. 15 People’s Daily}

Continue reading UPDATE: March 22nd, 2018: President Trump Proposes $50 Billion in Tariffs on China

Distributing your Brand in China

China represents a $250 billion market for US companies today, according to estimates of the U.S.-China Business Council. McKinsey & Company estimates that 76% of China’s urban population (550 million people) will be considered middle class by 2022 making it the 3rd-most populous country in the world with more than 160 cities with populations of at least 1 million.

Additionally, the e-commerce opportunity should not be missed with Chinese consumers buying $589.61 billion (+33.3% from 2014) worth of goods, according to the National Bureau of Statistics in China, compared to only $341.70 billion spent online in the US in 2015. The same year, China’s 500 largest e-retailers grew their combined online sales by 60% to $198 billion. Continue reading Distributing your Brand in China