China’s economy is very volatile leaving businesses in there uncertain of their future. Some business owners are already worried most especially people in the garment manufacturing industry. Here are seven reasons you need to know why garment manufacturing in China such a bad idea for now.
Disadvantages of Garment Manufacturing in China
1. Difficulty in Finding a Factory
Finding a factory to partner with is easy. But finding a factory that works well to your terms and conditions is really hard considering China’s fluctuating economy. Most China-based factories are satisfied with their long-term clients which makes it harder for you to fit in due to already-established working relationships.
2. Language/Communication Barrier
Only a small percentage of Chinese workers understand the English language. Unfortunately, even the ones who understand and can speak English actually speak a hybrid language called Chenglish. A combination of the Chinese and English language that bridges the communication gap between clients and workers.
There is more to communication than language. Chinese people are very literal and precise on things. They will most likely take very seriously every word you tell them. You cannot speak to them in riddles or metaphors or else they could get you wrong. Be careful with words and always have photos and videos to back yourself up and carry out your message clearly.
Most people have a negative impression on products which are made in China. They automatically think they are paying for a cheap low-quality material. This impression is purely biased because there are a lot of top-quality products which are made in China along with ones who are low-quality. As a clothing manufacturer or wholesale clothing supplier, you must be ready to face these negative impressions. If you are confident of the quality of your products, then these negative feedbacks should not faze you.
4. Higher Minimums
Most Chinese factories do not accommodate small quantity orders. If you are a small private label clothing line, then you need to partner with a fellow wholesale clothing supplier to at least attain the minimum order to work with Chinese factories. SEMs work this way when dealing with Chinese factories. It would be very tough for a small clothing manufacturer to stand alone in China.
5. Costly Shipping and other Expenses
Shipping from anywhere in the US means simply paying the landing cost or the amount of good ordered once they arrived at the front door along with other charges. When shipping in China, it is much more complex. China applies different fees aside from the charges in the Customs office. China’s strict government policies will take its toll on your garment shipping. The process would be more expensive and give you hassle.
6. Fluctuating Economy
The Chinese economy has been in a constant fluctuation for quite some time now. The economical changes may not be so drastic but this has an effect towards your business as a wholesale clothing supplier working with China. As long as the economy is not stable, you cannot be rest assured of your fees on transactions happening in China.
Aside from these disadvantages of garment manufacturing in China, there are also advantages which comes to it. The biggest pro has to be the cheap labor price. However, this lone advantage simply does not outweigh the cons in being a clothing manufacturing business in China.