How to Source Consumer Electronics in China

07 Oct.,2024

 

How to Source Consumer Electronics in China

How to Source Consumer Electronics in China - Beginner's Guide

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August 7,

Consumer electronics is a great product niche to get into if you're looking for an industry that will almost always have consistent demand. While you may be interested in developing a consumer electronic product in China, it's a challenge to find a solid supplier that can consistently deliver a high-quality electronic product that will capture the attention of customers. 

Kanary has a lot of experience sourcing consumer electronics for clients, and we know what to look for (and what to avoid) when trying to find a supplier for this product niche. Below, we'll give some insight into the best way to source consumer electronic goods from China without having to hassle with low-quality factories. 

Choose a China Supplier with Experience in Consumer Electronics

In order to source any product, you need to connect with a supplier that can meet your needs. For consumer electronics, that means finding a supplier in China that has the appropriate background to successfully make the product you have in mind. 

We've talked a lot about how to find a manufacturer in China, but there are special considerations to keep in mind when looking for a supplier for consumer electronic goods. Your supplier should have:

  • Experience manufacturing consumer electronics
  • Experience in the specific genre of consumer electronics you're hoping to source (for example, an IPL hair removal device is likely to come from a very different supplier than an electric toothbrush or water flosser)
  • The engineering capacity to create a new product or an existing product, if those are current or future goals for your business

If you aren't sure where to start looking, consider starting in Dongguan, Huizhou, or Shenzhen. These areas are known for having multiple high-quality suppliers that specialize in consumer electronics. 

How to Choose a China Supplier for Consumer Electronics

Now that you know what to look for (and what areas in China to keep in mind), you can start your searching for suppliers. There's several places you can try to find suppliers, like:

  • Alibaba and other similar, online platforms
  • Trade shows
  • 3rd Party assistance from a sourcing specialist, like Kanary

When we source consumer electronics for clients, we usually look for 30-50 potential buyers that look like they might be an ok fit. From there we'll start narrowing down suppliers based on how good of a fit they are for specific clients. If you're doing this on your own, some factors to consider when you're narrowing down your own list includes:

  • Do they make products for your specific niche within consumer electronics
  • How much experience do they have in your industry (if they struggle with common industry terms of processes, they likely are very inexperienced)
  • How well do they communicate (whether they're just poor communicators or if there's a significant language barrier, if you can't effectively talk to a supplier, you're likely to have huge issues during negotiations and after production begins)
  • What are their lead times? (they could be the perfect supplier, but if they can't start production within your timeframe, they won't be an option)
  • What's their price point? (while price shouldn't be your primary consideration, a supplier that's outside of your budget won't work, either)

Narrowing down suppliers takes time, so make sure that you don't rush this process. Ideally, you can narrow down your list to 3-5 suppliers, and you can move to the next step of your decision making process.

Sampling

When you have your list narrowed down to a handful of promising suppliers, it will be time to move to the sampling phase. You need to request a sample from each potential supplier to make sure that they can follow your design specifications, as well as making sure that your design doesn't need to be adjusted. 

While almost any product type needs to go through a sampling phase, it is crucially important for consumer electronics. It's hard to find a quality consumer electronics supplier anywhere, including China, and this industry niche is notorious for quality problems. You want to know if a supplier is a poor choice before you sign a contract, not in the middle of mass production. 

Negotiations

When samples have been examined and approved, final negotiations will take place. This is where you'll hammer out items like pricing details and minimum order quantities (MOQs). This is where it's extremely helpful to speak Mandarin, since these negotiations can often be nuanced, and misunderstandings can cause huge problems down the road. 

Manufacture Consumer Electronics 

After negotiations are complete, and you've chosen your final supplier (or suppliers, depending on your product), production can begin. Quality control is always important, but it is particularly important for consumer electronics. As we mentioned, poor manufacturing quality for consumer products is very common, so you need to closely watch and manage quality control. 

The best way to do this is to physically be present at the factory. That allows you to get a full picture of production, potentially spot problems quickly, and it's a good way to establish and maintain positive relationships with factory stakeholders or owners. 

If you're serious about sourcing consumer products from China, you need to be prepared to have a hands-on approach to quality control. If you don't have the time, resources, or expertise to manage quality control yourself, you should consider partnering with a sourcing specialist, like Kanary. 

Shipping or Fulfillment

Since you're sourcing a consumer product, you need to have a plan on how your products are getting to consumers once they're ordered. Here are a few fulfillment options to consider when sourcing consumer electronics from China:

Traditional Bulk Shipping to Local Fulfillment Warehouse

This style of fulfillment is generally straightforward. You order your products, get them on a container for sea freight, and deliver those products to your local warehouse for fulfillment. 

Pros

  • Less logistical planning
  • Better pricing per unit, since sea freight is usually the cheapest option
  • A great option for products that have consistent, predictable demand

Cons

&#; Doesn't respond well sudden changes in demand
&#; Susceptible to supply chain disruptions and port congestion
&#; For international customers, can make for extremely long shipping times

For Traditional Bulk Shipping, Consider Consolidated Shipping

Consolidated shipping is a strategy that focuses on using as much container space as possible to save money on shipping costs. This usually means storing inventory until you have enough to fill a large shipping container (and coordinating with all involved suppliers to ship inventory to a single storage location). 

If you plan on using traditional bulk shipping regularly, then consolidated shipping is a strategy your business should use. 

Direct-to-Customer (DTC) China Fulfillment

Depending on your product, DTC China fulfillment may end up being the best strategy for you. When products are finished, they aren't sent to shipping containers for sea freight. Instead, they are delivered to a fulfillment warehouse in China so orders can be shipped directly to customers. 

Pros

  • Flexible to changing demand (you only order weeks of inventory at a time, not months)
  • Lead time from factories to fulfillment centers is as short as a few days
  • Consistent shipping times to all customers, including international
  • Avoids the process of clearing customs

Cons

  • May not get as good of a price point as you would with sea freight shipping
  • Impossible to consistently offer local customers 2-day shipping
  • Easy to miss product defects if you aren't able to consistently be in China

Hybrid Fulfillment

Finally, you may want to consider a hybrid approach that includes traditional bulk shipping and DTC China fulfillment. In this kind of strategy, you still transport bulk orders via sea freight to a local warehouse. However, as your local inventory is depleted, fulfillment switches to your China warehouse until another sea freight shipment can be delivered. 

Pros

  • Still takes advantage of the pricing benefits of traditional bulk shipment
  • Offers flexibility for sudden demand swings (if you sell out locally, you can still fulfill orders from China without interruption)
  • Makes it easier to target international customers since shipping times are reasonable 

Cons

  • Can be complicated to develop a hybrid strategy
  • Requires back-end systems that can signal when it's time to reorder inventory and when fulfillment from China should begin, and for which customers
  • Double fulfillment or missed fulfillment is more likely if your backend processes aren't fully established. 
  • Still requires expertise to clear customs successfully

If you're interested in DTC fulfillment or hybrid fulfillment, our preferred fulfillment partner, EcommOps, are the experts in developing DTC China fulfillment strategies. 

Clearing Customs with Consumer Electronics

If you are using traditional bulk shipping or a hybrid fulfillment model, you need to be prepared to clear customs with your order. If you don't have experience clearing customs, you may want to partner with a customs broker (or partner with a third-party that regularly works with custom brokers, like Kanary). 

How to Clear Customs

There's a lot of information to consider when thinking about how to import products from China successfully, and while we won't go into full detail here, there are some important points to keep in mind:

  • Make sure your paperwork is correct: One of the most common reasons that there are delays in clearing customs is because the paperwork isn't done correctly. You'll need to have documentation like the Bill of Lading, commercial invoices, and packing lists, as well as any other documentation specific to your product. 
  • Have proper HTS codes: HTS codes are what U.S. Customs will determine the tax of your imported goods. The wrong HTS codes could mean you pay more taxes than you need to, or you don't pay enough (which will result in fines). 
  • Use consolidated shipping: When applicable, you should always use a full-container load (FCL) when importing products from China. There's a separate area at the ports where FCL shipments are unloaded, and it's usually less congested than less-than-container (LCL) shipments. 
  • Be prepared for delays: Even if you do everything perfectly, you may still get delayed in customs. You could get flagged for X-rays, if you have an LCL order, your container could be delayed, or the port could be congested due to supply chain disruptions or because of busy shopping seasons (like in Q4)

Kanary: China Sourcing Specialist for Consumer Electronics

China is an excellent area to find high-quality suppliers for consumer electronics, but there are also plenty of poor choices that will frustrate your business. If you want a guarantee that you find a supplier that's a great fit for your needs, then partner with Kanary! We know where to look for the best suppliers and have established relationships with multiple suppliers already. 

We also offer unique advantages, including:

  • A physical presence in the U.S. and China
  • True bilingual support (Mandarin/English)
  • Contract negotiation
  • Boots-on-the-ground quality control during production
  • Shipping expertise
  • Experience helping clients clear customs

If you want to remove the uncertainty of looking for a supplier, reach out to us. You can fill out our online form, or call us directly at +1-305-735-, and we'll get started on creating a sourcing plan unique to your business, including finding excellent electronic consumer suppliers to choose from. 

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How to Avoid Quality Issues When Buying China Electronics?

China is a powerhouse in the electronics sector. In fact, electronic production from China has grown at a CAGR of 11.9% in the past ten years &#; driven by the rapid development of consumer electronics products.

But while there are many Chinese electronics manufacturers, variations in quality make it difficult to source electronics from China. To help you along the way, we&#;ve listed a few of the most critical factors regarding quality control in electronics.

 

How to Find an Electronics Manufacturer in China?

China is the world&#;s largest producer, consumer, and exporter of consumer electronics. But that being said, it is not always easy to find reliable electronics manufacturers in China. Even though many Chinese manufacturers have improved their quality over the past decade. There are still problems with some of the manufacturer&#;s quality.

There are many channels you can use to find manufacturers in China, but the easiest and most efficient ways include:

  • Business-to-Business Online Platforms

     &#; International marketplaces such as Alibaba and Made-in-China have thousands of registered businesses selling millions of products daily. These platforms can be a great starting point for finding relevant manufacturers in China for electronics.

  • Direct Suppliers 

    &#; Another method is searching for manufacturers using a search engine like Google or Baidu and contacting the company directly. If you&#;re in China, it can be wise to visit the electronics factories directly, as most are located in Shenzhen, Guangdong Province.

  • Sourcing Agents

     &#; Using sourcing agents can be an affordable way to find China electronics suppliers, especially if you&#;re not in the country.

  • Trade Fairs 

    &#; Attending larger exhibitions is a great opportunity to connect with Chinese electronics suppliers. Keep an eye out for the larger ones, like The Canton Fair, China Cycle, and China Homelife (often held abroad).

 

Tips: It can be a good idea to book a supplier audit, testing, or a pre-inspection before you import electric goods from China. This can ensure that the Chinese electronics manufacturer is legitimate and the quality meets your standards or applicable legislation.

What Are the Common Electronic Supply Chain Challenges?

The challenges in the electronic supply chain industry are different from other industries. This is due to the  complexity and the global nature of the electronics industry. There are multiple stakeholders, and it&#;s important to note that each of them has their own set of requirements.

Businesses sourcing electronics in China often face difficulties with:

  • The ongoing electronics component shortage and long component lead times.

  • A lack of supply chain visibility.

  • The supplier may have a low-quality assurance standard.

  • Ongoing disputes from the Chinese supplier to raise prices.

  • The supplier may not have all of the required testing reports.

 

Learn about more challenges and quality compliance from our webinar below!

With competitive price and timely delivery, Boraychem sincerely hope to be your supplier and partner.

What Are the Best Sourcing Strategies in China?

When buying goods from a Chinese electronics supplier, it&#;s important to have a sourcing strategy before you start initiating contact. Below are some of the best sourcing strategies outlined by an expert in our sourcing from China webinar.

1. Know Who You&#;re Buying From

Know the partner you&#;re choosing; are they a trading company or a manufacturer? What is their specialty? Traditionally, manufacturers offer a wide range of products, whereas trading companies typically deal with a specific product. Do they have the ability to deal with problems in their own production or with their suppliers? The more you know, the better-educated decision you can take.

2. Get Multiple Offers

Don&#;t settle for the first offer from a Chinese manufacturer. Get quotes from manufacturers in multiple regions in China and businesses of different sizes. Look for alternative countries, such as Vietnam or Thailand, if you struggle to find the right electronic supplier or manufacturer.

3. Paper Trail

It is crucial to have a proper paper trail that summarizes all the various services and deliverables agreed to in a contract. This way, if anything happens, both parties can refer back to the contract and see clearly what was agreed upon. In case of legal disputes, the first thing people often will ask for is the paper trail of evidence.

4. Don&#;t Risk Safety and Compliance

Make sure the compliance has been taken care of by the electronic manufacturer. A third party can help you take care of that.

5. Ramp-up Plan

Have a good ramp-up time to try the product commercially in the supply chain, and be ready to place bigger orders later.

Why Use Quality Control in Electronics Supply Chain Management?

In today&#;s age of cut-throat market competition, companies are using innovative ways to raise their product quality standards. Quality control is crucial in electronics supply chain management because it ensures that the product meets customer expectations and specifications.

Below are some key reasons why quality control is important in the electronics industry:

  • Locating defects and scraps 

    &#; Substandard raw materials will surface in the end product, making the whole production of a lot or batch inefficient and increasing the defect rate &#; and negatively impacting the bottom line.

  • Reducing the variability in your materials

     &#; Materials purchased from the same source may not always be the same. Variability is a part of the process &#; and it&#;s impossible to get the same materials every time.

  • External Failures

     &#; If there is a mediocre supply chain system, you won&#;t get the desired product quality.

  • It determines the product&#;s operational lifespan 

    &#; Quality control is essential for calculating how long products will last for the end user and the warranty period.

Important Safety and Market Compliance When Buying From China Electronics Manufacturer

There are three main aspects to the acceptance of a product being safe in any particular market: product safety legislation, product standards, and type testing.

Product Safety Legislation

It is the legal obligation of the manufacturer or supplier not to supply a product that could cause damage or injury.

The regulations governing certain products vary across different regions, and the importer must ensure that the products comply with these regulations. The manufacturers must prove that their products comply with applicable tests to meet international standards.

Product Standards

Product standards are developed to support directives such as the European Union&#;s CE mark, and these are the second aspect of product quality and compliance. 

  • These standards contain the details of safe product design and may include insulation, strength, material compatibility, limits of temperature rise, and many other safety-related specifications.

  • New standards are developed Europe-wide under the control of CENELEC (which deals with all electrical-related standards) or CEN (which deals with everything else).

Type Tests

These are test standards that provide a format for testing appliances. They are used by manufacturers during the design of their products but can also help provide independent third parties with a benchmark.

Examples of type tests:

  • In the UK &#; BSi Kite, BEAB approval & CE marks, etc.

  • In the EU &#; CE Mark

  • In the US &#; UL Mark

 

Note: There are many other standards; some are voluntary, and some are mandatory. Watch the interview below to learn more about key regulations and updates.

How to Avoid Safety Issues When Buying China Electronics ?

How to avoid issues sourcing electronics as an importer

The importers need to verify compliance with your destination market&#;s regulations.

As an importer, you must check that:

  • The manufacturers outside the EU have taken the necessary steps to allow the product to be placed on the EU market.

  • The necessary documentation, such as the EU declaration of conformity and the technical documentation, is available upon request.

  • The ability to contact the manufacturer is possible at any time.

 

How to avoid issues for manufactures

Quality control in electronics manufacturing is an important aspect of the assembly line and is the first line of defense against compliance/safety issues. Usually, your quality assurance plan must include the following critical process:

  • Risk Management

  • Certified Engineers

  • Certifications

  • First Article Approval

  • Standardized Inspection

 

Conclusion: How to Avoid Quality Issues When Buying China Electronics?

There are several factors to be aware of when sourcing China electronics. These include implementing quality control in your supply chain, ensuring the product is safe to use and complies with product safety legislation, product standards, and type tests.

But quality control becomes challenging when the actual supplier or manufacturer is thousands of miles away from you. At HQTS, we can help you conduct a supplier or factory audit to ensure your supplier can produce what you&#;ve contracted to them and quality control inspect your product at various stages of the manufacturing process. Contact us today for more information.

Are you interested in learning more about Chinese Electronic Chemicals? Contact us today to secure an expert consultation!