Product Categorization: Part one – Product and Industry Knowledge in China Manufacturing
October 2, 2023
If your sourcing needs involve any China manufacturing, we can help. CPG prides itself on being “product agnostic.” However, product specifics and market maturity greatly affect project timelines and costs.
Why Categorize Your products?
CPG sources a wide range of products to meet client needs. Different categories demand distinct industry knowledge during sourcing. However, all product categories have common goals for optimal cost, good quality, and on-time delivery.
For example, buyers sourcing for an “iron giant,” such as a steel structure for a power plant, are likely to focus on supplier capabilities, project management, and supplier qualifications. The American Society of Mechanical Engineers (ASME), American Welding Society (AWS), and American Society for Testing Material (ASTM) create requirements for the expected standards for fabrication.
Buyers sourcing toys, such as fluffy little puppets or water guns for kids, should look for manufacturers in toy industrial clusters. Zhejiang and Fujian provinces are best suited for these types of products.
If in the electronics industry, Guangdong province is the best place to explore.
Buyers developing a new product should focus on finding a supplier who has strong research and development capabilities, and so on.
Knowledge Requirement of China Manufacturing
Below are further examples of required knowledge by each industry. This knowledge has become second nature to CPG as we have acquired expertise in various industries:
– Paper Products: Forest Stewardship Council (FSC) requirements
– Food Contact Products: Food and Drug Administration (FDA) requirements
– Home Appliances: European Conformity (CE), Underwriters’ Laboratories (UL), Federal Communications Commission (FCC) requirements
– Bamboo Materials: Guangxi would be the best province to explore for these materials.
– Iron Casting: Hebei and Shandong are giants in this industry, to name a few.
It is easier and quicker to find the right kinds of factories after you classify the product category and identifying its special requirements. Thus, you can execute your sourcing program in an efficient manner.
Next week, we’ll share how CPG’s knowledge of these requirements and industry expertise in China manufacturing help us categorize products for our buyers. This ultimately translates into sourcing efficiency and optimization of the supply chain – which can have a major impact on your bottom line.
Editor’s Note: This blog was originally published in December 2021.