US-China Trade War: How to reduce US cost on backpack bags

  • 2019-10-29 18:05:35

We are honored to share some of our company's experiences and stories!

In 2018, the United States launched a trade war against China, adding a very high tariff to Chinese products. The supply chain in China and even the world has undergone tremendous changes. Buyers in the United States are forced to reduce their purchases from China by purchasing more, or to start sourcing from other countries. At this time, Chinese companies have encountered unprecedented challenges. There are only two ways ahead of us: First, find ways to reduce costs, give customers cheaper prices, and help customers bear the increased costs of tariffs. Second: go to Southeast Asia and even African countries to open factories to seek new development.

It is impossible to reduce costs in China's increasing cost today, so we chose to go to Southeast Asia to open a factory. In the end, we chose Yangon, Myanmar, Southeast Asia.

The advantages of opening a factory in Yangon, Myanmar are:
1. People in this area are all convinced of Buddha, working hard and managing is simpler.
2. There are very good laborers here, and there are millions of young people who need to find a job.
3. Low labor costs

4. The most important thing is that the export to the US and European countries are zero tariffs, which greatly reduces the procurement cost for our customers and makes their products more advantageous.

Because of these advantages, we went to the local field to study and inspect, and finally our Myanmar factory was officially launched at the end of 2018.

Mummy daiper bags factory

It’s been almost a year since the start of the factory in Myanmar. How is the development of the factory, is it the same as the original estimate?

Now our Myanmar factory has about 700 quality skilled workers, and the efficiency of production is increasing day by day, which is much better than our previous estimate.

Trolley bags supplier

At the same time, we also overcome the impact of many local natural environments. For example, there will be a four-month rainy season in Myanmar. The products produced in these seasons are more prone to moldy risks. We have purchased large drying equipment and added all the drying products to the products in the rainy season to eliminate mold.

At the same time, we also overcome the situation of frequent power outages, and we installed the generator ourselves. When the power is off, we will generate electricity by ourselves to ensure the normal operation of the factory every day. (attached the beautiful picture of the machine)
I share our current production efficiency.
Nowadays, the average daily production capacity is 5,000 backpacks, 4000 Mummy bags, 3000 tool bags and 3000 trolley bags. This data is also rising and refreshing again and again.

If you have any bag purchase requirements, please feel free to contact us.

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