Sourcing and Manufacturing Options Outside of China - With Mike Michelini

Introduction

In this episode of Seller Sessions, host Danny McMillan interviews Mike Michelini, an expert on sourcing and manufacturing in Asia, specifically Thailand. They discuss the pros and cons of manufacturing in Thailand compared to China.

Key Takeaways

Thailand is known for handmade, natural products vs China's expertise in electronics and injection molded plastics
Northern Thailand specializes in wood, handmade goods, natural products. South Thailand near Bangkok has more traditional factories.
Response times are slower in Thailand - you have to follow up more but once engaged, they commit
Use Facebook and Line app to source suppliers in Thailand
Higher minimum order quantities (MOQs) in Thailand - educate on holding inventory
Packaging options less abundant than China - focus on great branding
Overall quality has been higher for Mike in Thailand vs China

Comparisons of Manufacturing in China vs Thailand

China is the "world's factory" - expertise in electronics, injection molded plastics
Thailand better for handmade, natural products - wood, dried flowers, clothes
Northern Thailand known for wood, handmade goods, natural products
Southern Thailand near Bangkok has more traditional factories with port access
Response times slower in Thailand - have to follow up more aggressively
Once engaged, Thai suppliers very committed
Source Thai suppliers via Facebook and Line app vs Alibaba
Higher minimum order quantities (MOQs) - educate to hold inventory
Packaging options less abundant than China - focus on great branding
Quality has been higher in Mike's experience with Thailand vs China

Sourcing Suppliers in Thailand

No Alibaba-like platform - use Facebook and Line app
Search Facebook in Thai for suppliers and products
Engage via Facebook Messenger then move to Line app
Get friendly with emojis and build relationship
Recap terms in a quotation for clarity
Prepare to educate on holding inventory for lower MOQs
Packaging options less abundant - develop great custom branding
Overall quality has been higher than China factories

Tips for Manufacturing Outside China

Expect higher minimum order quantities (MOQs) and educate to hold inventory
Develop great custom branding and packaging to stand out
Build relationship with factory through messaging apps
Don't assume same level of urgency - follow up aggressively
Confirm terms: pricing, MOQs, delivery timelines, inspection process
Leverage inspection companies expanding across Asia
With lower volumes, consider negotiating payment terms favorable to you
Be prepared to educate on your needs like lower MOQs

Mike's Joint Venture Brand in Thailand

Mike partnered with long-time plastic manufacturer in Thailand
Started joint venture company and private label brand together
Mike has 30% equity stake, manufacturer holds 70%
Manufacturer finances inventory for launch around $150k
Mike's company makes payments over time to pay back capital

Cross Border Summit in Thailand

Mike's signature event connecting Amazon sellers and experts
Started in China alongside Canton Fair schedule
Moved to Thailand and postpones 2 years for border reopening
Occurs annually in March/April timeframe
Valuable for networking and meeting suppliers
2023 summit scheduled for March 30-31 near Chiang Mai
Check CrossBorderSummit.com for details

Conclusion

Thailand offers a compelling option for sourcing quality products outside China. With the right expectations and preparation, you can find great partner factories to produce your products. The Cross Border Summit provides an opportunity to network and meet potential suppliers in Thailand.

Keywords: Thailand manufacturing, China manufacturing, sourcing outside China, finding suppliers in Thailand, Cross Border Summit

Sourcing and Manufacturing Options Outside of China - With Mike Michelini

Seller Sessions Amazon FBA and Private Label