Factory A provides Plastic & tooling, Factory B provides packaging, and Factory C provides raw material and components. Factory D assembles everything. And they are all within a stone throw away from each other. Most of these factories bosses are relatives of each other. They set up a perfect system within their “community”.
I’ll give you an example and I am not kidding you, 95% of the world’s supply of electrical multi-sockets comes from a small town in Cixi near Ningbo/Shanghai. When I say small I actually mean small for China. Over 1.4 Million people to be exact.
When you step into “Ningbo Kaifeng” (largest factory in the world for multi-sockets) you will be overwhelmed. And when you step outside of the building you will see 5 of his competitors across the street. And they are all brothers or related. And down the street they find everything they need. Factories that make packaging, tooling, plastic, steel and so on.
The Chinese manufacturers are so effective in terms of production & infrastructure, some 1st world countries could really learn a lot.
The big retailers have figured that out a long time ago, nearly every large corporation, retailer, discounter or online shop has a Buying Office somewhere in China/Hong Kong. When you walk into a factory and look at the production line you will see cartons of goods with the famous names on it. Be it a fan from Homedepot, an audio speaker for Target or a ceramic pot for Bed Bath & Beyond. They ALL buy in China.
Most products are settled in specific areas.
Here are a few examples:
– Guangdong province (South of China): Electronics of any kind, especially Consumer & Household, toys
– Zhejiang province (Shanghai area): DIY products, tools, metal & fabrics, lighting
– Hebei province (Beijing area): Textiles, coal, steel, iron, engineering, chemicals, power, ceramics & food.
These would be the main areas for production. However nowadays production is also shifting inland for lower labor & production costs.
Contact actiomo to source your best supplier from China.