Is there a market for a small contract manufacturer based in china?

AlexinChinaAlexinChina Member
edited July 2014 in Starting a cosmetic line
hello everybody, 

my name is alex and i am a european living and working in china since 10 years. I have been presented with an opportunity to take over a small cosmetic contract manufacturer based in south china. This is something i would be very interested in. Problem is, though i have been working in chemicals manufacturing before, that was agro-chemicals, not cosmetics, and i have really not much knowledge about how the cosmetic industry works.

i would be happy if someone could share with me their thoughts on whether a small cosmetic contract manufacturer based in china could be of interest to cosmetic companies based in the west. I have done my share of internet research on the topic and it seems to me that contract manufacturers are widely available in every country, with a huge number of cosmetic contract manufacturers based in any western countries.

is there then any reason why a cosmetic company would be interested in a contract manufacturer based in china?

just to give you an idea of the size of the company, they have 5 mixing tanks of between 50Kg and 500Kg capacity.

thank you for your ideas,

alex
  

Comments

  • DavidWDavidW Member, PCF student
    Isn't there a market for anything made in China?  They seem to be able to make anything and ship to anywhere for less than is costs domestically.  Finding that market may be another thing.
  • pmapma Member
    edited July 2014
    Yes! I'm totally sure! China is going be to the second largest cosmetic very soon and Chinese people are very entrepreneurial.

    Another thing that can be positive: to export to China is bureaucratic, to sell in the Chinese market some Western companies prefer to manufacture in China because it's easier than export to China... so, you can get some Western clients as well.

  • hello DavidW, yes of course you are right, i was just thinking that it looks like there are cosmetic contract manufacturers everywhere and so probably being close to the customer is something that is valued more than being extremely low cost? Also it seems to me that being extremely low cost in a capital intensive industry like chemicals might mean cutting corners on payment of wages, taxes and on quality, which i wouldnt want to do.

    hello pma, yes western companies based in china would also be potential clients, right now the company in question has been working only with local companies (for the last 10 years) and this didnt work out because in the end many local companies closed down, and the ones that didnt close down are hard to work with (delayed payments etc etc). So in the end this company is closing down too. 
  • Alex. I am work in a cosmetic company in zhejiang province east of china,our website is http://www.luoys.com/,http://www.lucy.en.alibaba.com/,so you can get touch with our sales manager Ms Grace Sun or write Emails to me, my Email box is 276169251@qq.com,you can call me RAY!
       as I know almost cosmetics manufacture company is in guangzhou,shanghai, zhejiang ,fujian of china,there are less manufacture company in west china!
  • PerryPerry Administrator, Professional Chemist
    Well if you can compete on price (after shipping) and quality then there would be a market.
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