MJ Sourcing

MJ Sourcing More than 20 years working in trading and logistics, we have so much to share with you!

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Getting Started with China WholesaleImporting low-cost products from countries like China can be extremely profitable fo...
12/10/2021

Getting Started with China Wholesale

Importing low-cost products from countries like China can be extremely profitable for your business. For those who are new to China sourcing, it may sound complicated and risky. However, those who are familiar with it know that it can be quite easy.

If you are planning to start or have just started your China wholesale business, remember to always consider shipping costs. An item that you are importing from China may have a wholesale price of $1, but the freight charges might be $10. So, in reality, you are paying $11 per item instead of $1. Paying more for freight than the actual product is definitely not a smart business move.

Heavier, bulkier items typically incur higher freight costs. It may be a good idea to start by importing small, lightweight items at the beginning of your business.

If you want to start your China wholesale business, here are some steps that you can follow:

Be prepared
Starting a wholesale business with products from China requires some amount of planning. Before starting your business, figure out the following:

Do you need a wholesale license?

To import certain wholesale items from China, you may need a wholesale license. It may not be required for all items, but it is better to check if your business needs one. You must check your local laws regarding the licensing requirements.

What will be the location of your business?

Different areas have not only different laws and regulations but also different potential niches. Before you take a step forward, you must find out if your wholesale business is legal in the area that you live in.

What type of wholesale business do you want to run?

The term ‘wholesale business’ is an umbrella term and can be broadly divided into two types:

You buy bulk items from wholesale suppliers and sell them directly to consumers.
You buy in wholesale from a supplier and then sell it to retailers.
If you are new to the wholesale business, selling directly to consumers is recommended, as there are fewer risks. However, if you have experience in the wholesale business and have distribution channels and business scale, you may choose any one of the two.

What products do you want to deal with?

If you have not yet decided what products you want to sell, here’s a tip. You should always consider importing products that have a high demand. It could be a product that, even though high in demand, is not easily available in your home country. Or it could be immensely popular and locally available, but sourcing it at a cheaper rate from China makes it more profitable.

To know which products are high in demand, the rule of thumb is to look at the current trends. Some of the product categories that are very popular in China wholesale are:

Home décor
Mobile phones
Electronics
Fashion accessories
Watches
Gift boxes
Hair accessories
Pet supplies
Where will I store my wholesale inventory?

You would need a safe, secure place to store your wholesale inventory. If you already have a warehouse, then you probably don’t need to worry. For those who don’t, you may want to rent a warehouse where you could directly have your goods shipped from China.
Set up your wholesale business
Now that you have figured out the basics about your wholesale business, you need to take the necessary steps to set it up.

Get your wholesale license
The items you plan to import from China may not require a wholesale license. Why then should you apply for one? All state governments levy sales tax, and you surely would not want to be taxed multiple times from getting your goods from the manufacturer to selling it to local consumers. A wholesale license allows you to buy products in bulk with the intention to resell, without having to pay tax. You may also need a sales tax license for your business.

How can you apply for a wholesale license?
You can begin by logging on to the US Customs website to know about the requirements of a wholesale license. Different government agencies have different licensing requirements. For instance, if you are importing skin care or hair care items from China, you may need to fulfill the FDA requirements.

Here’s how you can get your wholesale license:

Log in to your local official website
Understand the wholesale license requirements
Set up your business as a legal entity
Apply for a sales tax ID
Submit your application
What is the cost of a wholesale license?

The requirements for acquiring a wholesale license is different for different states. Hence, the cost of a wholesale license may be different in different states.

Find the right China wholesale suppliers
The most important part of setting up a China wholesale business is to find the right wholesale suppliers in China. You could either take the next flight to China and start looking for the right manufacturers and suppliers or do the next best thing. Hire a sourcing agent.

What is a sourcing agent?

A China sourcing agent works in close collaboration with you to search, identify, and negotiate with wholesale suppliers and manufacturers in China. China sourcing agents can also help you with market research, quality control, pre-shipment assessment, custom clearance, and supplier growth.

A good China sourcing agent is:

Fluent in both Mandarin and English
Has in-depth knowledge of Chinese business culture
Has extensive experience in handling Chinese suppliers
Experienced in quality control
Experienced in audit and logistics
Partnering with the right sourcing agent and the right wholesale suppliers can be a total game changer for your business. A good China sourcing agent can help you source high-quality products at extremely affordable rates that enhance the cost-effectiveness of your business.

Grow your China wholesale business
Once you have the right products from the right suppliers in China, your business is in motion. It is now time to think about growing your China wholesale business.

Integrating the supply chain can make your business more profitable. In a traditional wholesale business, you buy from a China wholesale supplier and then sell it to a retailer who, in turn, sells it to the consumers. Removing the middle links and selling directly to the consumers could be an effective way to grow your business.

Your China sourcing agent can play a vital role in the growth of your business. Your sourcing agent can take care of the entire manufacturing process from finding the right manufacturers to shipping it directly to your warehouse. With the right partnership, you can concentrate on expanding your consumer base while the rest of the process is taken care of by your agent.

Use a feasible pricing strategy
The right pricing strategy can do wonders for your China wholesale business. With the right sourcing agent, you already have the right suppliers providing the right product at an amazing rate. Now, you need to adjust the pricing strategy that can help you grow your consumer base and your business.

Your pricing strategy must include:

Your sourcing price
Shipping costs
Freight charges, if any
Any other miscellaneous costs
The right pricing strategy can help you recover all these expenses and still provide a great product to your consumer at the right price.

Create your own distribution channel
If you want to grow and expand your China wholesale business, you must create distribution channels. With more and more people using the internet these days, you can either create your own e-Commerce website or sell your products on already existing ones. Selling on Amazon and Ebay could be a great way to expand your consumer base.

If you want to have your own website, you would need to purchase a domain name. Selling on Amazon or Ebay is easier, but there are already a huge number of sellers on these websites. For a newcomer, it may sometimes be tough to stand apart in the crowd of experienced wholesalers. However, selling on Amazon could be a good idea if you are just starting off your business. As it grows, you may think about investing in your own eCommerce website and open another sales channel.

Market your business
Whether you have set up your own eCommerce website or you are selling on Amazon, it is vital to market your business.

Your marketing plan must focus on the following:

Bringing in new wholesale customers
Getting more orders from your wholesale customers
Increasing sales for your wholesale business
There are several ways to market your business like cold calling, email campaigns, and sending samples. If you are not entirely comfortable handling marketing on your own, it is recommended to seek the help of professionals. You can hire a marketing agency or even hire a freelance marketing agent if you are on a budget.

Tips to get your wholesale imports from China
China is often called the factory of the world, and there are thousands of products that you can choose from. For a successful China wholesale business, you must choose products that you can make a profit of.

Here are some handy tips for those of you thinking about starting a China wholesale business:

You should know everything about your niche. When you know your niche well, you can create an effective marketing strategy, the right pricing strategy, and more engagement with your target audience.
If you are new to the China wholesale business, start small. It is absolutely fine if you have big dreams, but in the beginning, a realistic approach will be more helpful in setting up your business. Pick a niche that does not have too many big players so that you struggle less in making a mark. A viable niche could be the one that most retailers don’t sell in.
Start by dealing with low-risk products, meaning products that are least likely to cause an injury. By dealing with low-risk products, you safeguard yourself from any potential lawsuits in the future.
Create a close working relationship with your China sourcing agent and Chinese suppliers. Developing an amicable relationship with both can play a key role in the growth of your business.
Since you would be sourcing your products mostly from China, learning about Chinese business culture can prove helpful in the long run.
Never compromise on quality. Getting high-quality products at affordable rates is the biggest upside of sourcing from China. However, the quality of your products is directly proportional to the price you pay. When you pay too cheap a price, suppliers may cut corners, which will result in an inferior quality product. If your sourced product does not comply with regulations and certifications, you may have to face legal repercussions.
Be mindful when you sign the sales agreement with your Chinese suppliers. Make sure you include important points like terms of product specifications, quality control, and conditions for return so that you only get high-quality products.
Conclusion
Starting a China wholesale business, or any other business, for that matter, is not an easy thing to do. There are risks involved in sourcing from China, which can be mitigated if you partner with the right people and pay attention to detail. However, the benefits of sourcing products from China often outweigh the downsides.

China is an emerging marketplace, which means that there are excellent opportunities for new businesses. The right sourcing strategy can prove extremely profitable for your business. However, the language barrier and lack of knowledge about the Chinese business culture can often prove to be a hindrance to sourcing products from China.

The right China sourcing agent can take away the bulk of your worries about procurement from China. From finding reliable and experienced manufacturers in handling the quality control and logistics; they can help manage a huge chunk of your business. When you partner with the right sourcing agent, you can focus your energy on other aspects of the business to create a more successful and profitable China wholesale business.


11/10/2021

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Adding Suppliers in China to Your Supply ChainSourcing products from China for your Amazon retail business involves many...
11/10/2021

Adding Suppliers in China to Your Supply Chain

Sourcing products from China for your Amazon retail business involves many critical decisions. You can succeed if your supplier is able to give you high quality products consistently for profitable price points.

Third-party sellers on Amazon sold close to 60 percent of online merchandise in 2019 while the value of goods sold online amounted to $200 billion. It is well known that close to 70 percent of Amazon sellers source from China. While sellers depend on factories in China to manufacture and supply them with products that are proven profitable, the ongoing health crisis stemming from the Pandemic has posed many challenges.

One of the concerns that many Amazon sellers have when it comes to finding suppliers in China for their Amazon selling business is whether the manufacturing activity and exports have recovered in China after the production decline during the peak of the Pandemic.

Recovery in manufacturing
Recent trends indicate that China’s manufacturing activity started to climb in June of 2020, signaling a gradual recovery after the slump created due to coronavirus.

As per the data that was put out by the NBS (National Bureau of Statistics), there was a rise in purchasing managers’ index in June to 50.9. Figures above 50 are indicative of improving conditions in manufacturing activity. While companies and factories have resumed production, medium-sized companies and larger companies have improved and garnered more orders as compared to smaller firms.

More positive news came in October of 2020, with data indicating growth in imports and exports in China in recent months which is a clear sign of a recovering economy. While imports increased in September by 13.2 percent, the exports witnessed strong gains as a growing number of trading partners eased coronavirus restrictions which further boosted the economy.

Although the process has been gradual, it is clear from these figures that manufacturing is showing all the signs of a rapid recovery and is set to be back on track to pre-COVID levels in the very near future.

Here are some of the factors to keep in mind when adding suppliers in China to your supply chain:

Know the supplier as well as it’s supply chain in China
Knowing which factories or suppliers you are dealing with and understanding the production run with each factory enables you to make informed, strategic decisions. It is important to begin with a vendor analysis before sourcing any product from China for an Amazon selling business.

Ensure that it is a manufacturer and not a reseller or trading company that you are dealing with. Many resellers pose as manufacturers on marketplaces and it can be confusing to identify between a sourcing agent, trading company, manufacturer or a wholesaler.

Working with the manufacturer directly helps you maximize your profit margins as you can cut out the middlemen. Many manufacturers have their own network of suppliers as well, who can manufacture different parts or components. When looking into the quality standards and reliability of the manufacturer, it is important to know if there is any method the supplier follows to ensure the quality of the sub-suppliers or contractors.

Attending import-export and international trade fairs such as Canton Fair is one of the recommended ways to meet the suppliers in person, establish a rapport and verify their authenticity. Many suppliers begin their search on Alibaba and other marketplaces. However, all suppliers who have received the ‘Gold supplier’ tag on Alibaba are not necessarily genuine or high quality. The gold supplier status is given to suppliers who pay the premium membership fee on Alibaba.

Other than Alibaba, you can also explore other marketplaces such as:

1688.com which is Alibaba’s Chinese language version which mostly has traders and not the manufacturers. As it is available only in Mandarin, you will need the services of a China sourcing agent to communicate.
Globalsources.com is a company based in Hong-Kong and a leading B2B marketplace with 30 offices spread across China. The suppliers’ list on this platform is very well vetted.
Made-in-china.com is where you can find some of the latest China products and has an easy user interface.
Tradekey.com is an international Electronic Marketplace with 9 million distributors and consumers across over 240 countries.
AsianProducts.com and DHGate.com are the other marketplaces to explore. DHGate.com has a secure payment system where they pass payments only when the buyer confirms that they received the goods which makes transactions safe.
A China sourcing agent can help with all the leg work that is required to identify the right suppliers in China, establish a rapport, negotiate prices and communicate your requirements. They can also visit the supplier’s factory, inspect the process and obtain samples for your evaluation.

These agents also handle shipment and logistics while working out a back up plan in case something goes wrong in the process. This will help you avoid costly mistakes, delays and scams when sourcing from China.

Logistics and shipment
Taking shortcuts with the China supply chain can backfire in many ways and has a major impact on your profits. One of the most expensive shortcut mistakes is to not have appropriate checks and balances for quality control. Quality control inspections are not only mandatory but must occur before the shipment leaves from the China factory and before you pay up the dues on the shipment.

Another mistake that many Amazon sellers make is to entrust the shipping entirely to the China supplier, believing it to be the fastest and simplest way to handle shipment.

Some Amazon sellers prefer to ship directly to Amazon FBA (Fulfilled by Amazon) from China. Fulfillment by Amazon is a service that Amazon offers for sellers to store their products in the ecommerce giant’s fulfillment centers where Amazon packs and ships the products to customers.

Shipping to Amazon FBA from China can translate to quicker transit times for the product to reach Amazon’s warehouse, which in turn means that you can start selling faster on Amazon. You can also save the costs of middlemen in this method. However, the challenges are that the products will have to be shipped to different warehouses and duties and freight charges have to be paid. The products also have to meet the packaging and labelling standards set by Amazon.

The other way of shipping products is to use a middleman who then forwards the shipment to Amazon warehouses. Using third party logistics has its own advantages such as products can be shipped in a consolidated form to one location while you can also inspect them to ensure their quality. The main disadvantages of using middlemen are that you need to pay the third party to handle the shipment while the transit times are also longer.

Mode of shipment
When you want to source products from China, a major consideration relates to the mode of shipment. Ocean shipping is typically preferred for large shipments and air freight is suitable when time is the top priority.

Apart from time, there are also cost considerations linked to different modes of shipment. Air freight from China can cost you sixteen times more than what sea freight costs according to data from the World Bank. The cost, however, depends on the volume of consignment as well as the weight. When smaller volumes are involved, it may be a better idea to ship through air freight. In addition to cost and time, you need to also look into the type of product that you need to ship. If it is a fragile product or is vulnerable to damage from weather changes such as humidity or temperature, ocean freight may not be the right choice.

The other shipment terms and documents that you need to be familiar with for adding a supplier in China to your supply chain include:

FCL or ‘full container load’ which refers to 45, 40 or 20 foot full containers. Although not common,ten foot containers are also available. A FCL may be the best choice if the consignment measures 18 cubic metres.
LCL denotes ‘less than a container load’ and is preferred when the order is not big enough to fill the full container. This type of consignment is consolidated with other shipments and shipped in a mixed container. If your products are between 2 to 3 cubic meters, it meets the minimum requirements for LCL.
FTL denotes full truck load’,while LTL refers to ‘less than a truck load’ and are typically used in domestic delivery.
Documents related to international logistics
Proforma invoice is the quote that includes description of items to be shipped, details of seller and buyer, price of items, the currency, and HS code which is an accepted system that border control and customs use to classify shipments. The invoice will also include delivery details and its cost.
Commercial invoice: Commercial invoices are official versions of proforma invoices and are required at customs.
Packing list is a document that has the list of goods being shipped, their gross and net weights, package dimensions and other special instructions. Freight forwarders use packing lists to make the bill of lading while customs officials use the list to get the location of packed items that they wish to examine.
Certificate of origin is required to identify where the goods being shipped originated in.
Bill of entry is a document that declares the quantity, type and value of shipped goods and is examined by authorities at customs.
Bill of lading is a contract between the transportation company and the shipper for the shipment of goods while it also doubles as a receipt that the carrier issues after receiving the goods.
Optimizing communication all across the supply chain
Communication breakdown can be one of the major pain points when it comes to adding a China supplier to your supply chain. The most common communication modes related to sourcing from China are excel spreadsheets and email. While these disjointed methods can work to a limited extent, they can also easily break down when there are complex orders, technical specifications or other details.

Chinese suppliers do not typically communicate freely when it comes to business relationships due to fear, lack of trust or because stating their opinion strongly and giving feedback is not integral to Chinese culture. Guanxi is an integral aspect of business relationships in China and refers to having personal trust and a strong relationship with someone, and can involve moral obligations and the exchanging of favours.

Although the aspect of Guanxi may not come into play at all times, it is regarded by experienced businesses who regularly do business in China as an element that gives them a distinct competitive advantage. Guanxi is needed to build and develop relationships with suppliers in China before doing any business.

The people who do business in China themselves spend a considerable amount of time in getting to know the supplier or contractor before doing any deals. Once the connection is established through Guanxi and the individuals are deemed to be trustworthy, the process of a business transaction is smoother. The China supplier treats customers differently based on how strong the Guanxi is between them. When the relationship is good, the supplier favors the client and the client often gets better deals and benefits than those that have not established Guanxi.

Apart from the challenge of establishing Guanxi with your China supplier, you also have to navigate the language differences. Many Amazon sellers and businesses who look to source from China use technical terminology including phrases, descriptions and words that cannot be translated easily into Chinese. This makes it difficult to have a clear communication with the manufacturer in China. Communication is also typically inhibited from the side of the Chinese manufacturer either due to the limited English knowledge or their inherent cultural norm of not freely giving opinions, information and feedback.

When you add the freight forwarder into the mix, the communication barriers become even more complex.

When your goal is to achieve better workflow management, optimize your product quality and minimize miscommunication or delays in communication, working with an experienced China sourcing agent is a smart decision.

The sourcing agent can handle all the steps involved in adding a China supplier to your supply chain - from identifying the right manufacturer, handling shipment, negotiating the prices, communicating technical specifications and building Guanxi. This means that you do not need to hire or work with multiple agencies such as freight forwarders, middlemen, third party audits or translators to source products from China. The experienced China sourcing agent provides end-to-end solutions to optimize your supply chain when sourcing from China.


10/10/2021

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Setting up Plastic Injection Molding in ChinaPlastic items such as toys, utensils, medical devices, water bottles, food ...
10/10/2021

Setting up Plastic Injection Molding in China

Plastic items such as toys, utensils, medical devices, water bottles, food containers and other devices have become indispensable in our daily lives. Most other components and products used in various industrial, automotive and construction sectors also involve many plastic parts.

While plastic has continued to be a popular material that finds numerous applications, the process of manufacturing plastic has improved over time. Most plastic components are made using plastic injection molding and China is a preferred destination for setting up plastic injection molding due to the cost advantages it offers.

The process involves heating the raw plastic material, injecting it into the mold, cooling the plastic and creating the desired end product. The creation of mold prototypes is as much a science as it is an art. Comprehensive technical expertise and utmost attention to detail are required to design, manufacture and finish custom plastic parts. Minor errors can lead to repetition of manufacturing procedures from scratch, that extend lead times and boost up cost of manufacturing.

To set up plastic injection molding in China, it is important to have a fundamental knowledge of the plastic injection molding process and know how to select the right manufacturer in China.

Plastic injection molding process
The first step in manufacturing plastic injection molding in China is to create the design of the mold. This task is taken up by design engineers who use their specialized design and computer skills to craft mold designs. Based on the product requirement, they also add elements of texturing such as logos, patterns, gloss finishes, matte finishes, layered textures, graphics and gripping surface.

The next step is to transfer the design to a plastic injection molding machine which then carves out the precise product using the design. These molds when made out of high strength steel can withstand the stress of mass production.

Creating a digital model helps the manufacturers in determining the precise shape and scale of the mold. The design has to achieve maximum precision as even minor errors in this stage can impact the entire production and can lead to product recalls. After finalizing the mold design, the next stage is to select the material that needs to be molded in the plastic injection molding machine.

The plastic injection molding machine has these basic components:

The injection system that feeds raw material (plastic) into the cylinder, heats and melts the plastic and pushes the melted plastic into the cavity through the vertical passage (spure)
The hydraulic system provides the force for injection system
Mold system is where the mold is loaded and assembled
Clamping system gives the packing force for the mold
Control system enables controlling of heating and cooling system.
The process of plastic injection molding starts with gravity feeding of raw materials into the injection system of the molding machine. The raw material melts due to the applied heat and pressure and the material is then injected into the mold under high pressure. Once the material enters the cavity, pressure is maintained until the raw material cools and solidifies. When the temperature of the plastic part is lower than the distortion temperature of the material, the mold opens out and the plastic product is ejected.

The entire production process is known as the molding cycle while the time lag between injection of the melted raw material into the cavity and the opening up of the mold is referred to as the clamp close time.

The time taken for the injection cycle is the sum of clamp close time and time needed to open the mold, eject the part and close the mold.

The cycle of plastic injection molding has these steps:

The mold closes while the screw of the injection system begins moving forward to inject the material while heating the material
The melted plastic is ejected into the cavity
As the screw moves forward continuously, the cavity is packed
The cavity cools as the gate freezes off
The screw retracts to get ready for injecting in the next cycle
The mold then opens and the plasticized parts are ejected by the ejection system
The mold closes
The next injection cycle begins
Commonly used plastic injection molding materials
Polyethylene – The commonly used material for making many products such as grocery bags and water bottles.

Polyethylene Terephthalate or PET - Also used for plastic water bottles, plastic bags and also as polyester fiber in the apparel industry.

Polyvinyl Chloride or PVC - This material has many industrial applications being a cost-effective and durable material.

Polyamide – Known commonly as nylon, polyamide is a flexible and highly durable material with wide ranging applications in climbing equipment such as ropes and cords, clothing and mechanical equipment.

Polypropylene – This type of plastic is typically used to make food containers.

Polystyrene – Polystyrene is commonly used to package other finished products and is also called Styrofoam.

Polyurethane - This flexible plastic is also available as a liquid and is used in adhesives, sealants, and varnishes.

Polycarbonate and acrylic – These highly durable, scratch resistant and transparent plastics find industrial usage and in the construction industry.

How to choose the right plastic injection molding manufacturer?
The major reason for businesses to look for plastic injection molding manufacturers in China is price which can make a huge difference in the bottomline. However, apart from price, there are many factors to look at when choosing a plastic injection molding manufacturer in China such as:

Is the manufacturer reliable and authentic? - The typical marketplace that most Amazon sellers and companies begin their search is Alibaba. Although the primary marketplace provides comprehensive listing of manufacturers, not every business listed is genuine. Many resellers or trading companies may also pose as manufacturers on the site. Choosing the wrong manufacturer based on the low cost or quote that they offer alone can be disastrous for your business. Some companies that ordered injection molds from a manufacturer in China found that the mold was not a high quality product while the certification the manufacturer provided turned out to be fake. Poor quality molds can wear down in quick time and replacing them can mean higher costs in the long run. Selecting a reliable manufacturer will also involve checking the legitimacy of their licenses, business registration and quality certifications such as ISO as well as samples.
References - whether they can provide references. A genuine company will be willing to provide references of their past and current customers while a fake company will hesitate or give vague responses.
Quality Systems - Verify if the manufacturer has stringent quality systems in place for manufacturing.
Experience - It is important to check how long the company has been manufacturing plastic injection molds and if they have in-depth knowledge of the field and the process. Asking a few technical questions to the supplier will help establish their knowledge and experience.
Communication - In China, many plastic injection mold manufacturers may have technical sales personnel who have transactional English knowledge. However, when it comes to plastic injection molding, technical knowledge and communication is of utmost importance. They need to understand your product requirements, measurements or dimensions, material requirements and know CAD drawing as well as the mold making process to be able to fully understand your specifications. The manufacturer also needs to be able to explain the molding process, show the 3D drawing and analyze size, material, structure and so on.
Capability and capacity- Evaluate if the factory’s capacity and capabilities match with your production requirements. Ask if the manufacturer does the entire production in-house or sub-contracts it to multiple other vendors. Check the manufacturing plant’s size and whether it is equipped with state-of-the-art mold processing and injection molding workshops, measuring instrument testing and product assembly services. Also look into whether the factory has other equipment such as CNC machining, milling/grinding, engraving machines, wire cutting and so on that may be required for specific products.
Many manufacturers in China use CAE technology (Computer-aided engineering) which is one of the most effective ways to create mold design, manufacture plastic products and ensure product processing. Compared to traditional mold design, the use of CAE technology has greater advantages in terms of ensuring product quality, improving productivity, cost reduction and reduction in labor intensity.

Evaluating if the manufacturer in China adopts CAE technology to make products is one of the crucial aspects of choosing the right plastic injection molding manufacturer. Traditional ease of injection moulding involves testing several products, finding the problems and then rectifying the process and may also involve modifying mold design and plastic products. All of this boosts production costs, extends the product development cycle and can result in poor quality products.

CAE technology is used before processing in the mold and can accurately predict the injection molding process including packing, melt filling, cooling, stress distribution, deformation or warping, fiber orientation distribution and product shrinkage. With this information on hand, designers can identify problems and rectify the mold design instead of waiting until the mold is made. This avoids mold rework and reduces costs and has considerable economic and technical significance.

Benefits of setting up plastic injection molding in China
Plastic injection molding in China is a flourishing and efficient manufacturing sector. While more than 15,000 plastic manufacturing companies existed in 2016 in China, the total sales had reached US $366 billion. In 2018, plastic parts and products totalling 13.95 million tons were manufactured in the country. The steady growth in the industry is due to rising demand in recent years from downstream industries including computer manufacturing, automobile and household product manufacturing. The industry revenue in 2019 was estimated to be $43.8 billion.

China die-cast and high-end mold products are exported across the world to 190 countries while the exports of more than 700 manufacturers exceed US $1million annually.

This is indicative of the fact that China plastic injection molding manufacturers are competitive in terms of price and can meet the quality standards of European and American markets.

Apart from CAE technology, many manufacturers have adopted advanced technologies such as robotization and automation in the plastics industry.

Injection molding companies are increasingly investing in automated technologies to achieve precise plastic products development, boost product consistency and achieve overall production and quality efficiency. With automated features, the production line is optimized and enables production of high volume of customized engineering plastics over fewer cycles.

The robotic technology adoption was expected to rise by 75 percent in 2019 while close to 150 robots per 10,000 humans is the expected ratio in 2020.

Here are some of the benefits of setting up plastic injection molding in China:

Low scrap rates – Many manufacturers use efficient plastic injection molding production where the amount of plastic used is optimized to ensure there is minimal wastage of plastic and residual scrap.
Cost-effective – The greatest advantage with China is that you can produce a large number of plastic products with less investment. While labor costs less in China, sophisticated technology ensures precision products, less errors in finished products and quicker timelines.
Repeatable process – As molds are reusable, the same products can be produced repeatedly, saving costs while not compromising quality.
Working with a China sourcing agent who specializes in plastic injection molding in China can optimize these benefits. The sourcing agent will have an office in China and not only can they communicate in Mandarin but they will visit the factory in person to perform an audit and check samples. They can also negotiate the best deals for you once they identify a reliable plastic injection molding manufacturer in China. With communication becoming seamless, you will be able to ensure the supplier in China understands your product requirements fully and is able to execute them without errors. The agent also coordinates with freight forwarders, which makes your process of sourcing plastic injection molding parts from China a hassle free one.

Plastic injection molding methods in China have considerably improved since their inception in the manufacturing world. With the ability of manufacturers in China to make high quality products using the latest technology all while costing less, you will be able to streamline your budget and ensure that you get the best quality of plastic products.


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