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Posted on March 15, 2016 Inside a Chinese factory where Amazon bound products originate!

Hey guys, I’m here at Hong Kong Station, and I’m about to jump on a train. I just got my first class ticket from Hong Kong up to Shenzhen. It’s a one-hour train ride, and the whole ticket was seventy eight Hong Kong dollars, which is about twenty bucks for a first class ticket. I’ll be there in an hour. Trains leave every three to five minutes. Welcome to the Asian train system, one of the best in efficiency. Alright guys, I’ll talk to you soon. Bye for now.

 

Hey guys, here we are in the car. It’s about seven in the morning. This much traffic makes for a really long drive. Have a look out there—welcome to Shenzhen traffic.

Hey guys, Adam here. Just giving you an update from the road. We’ve been driving for about ninety minutes now, nearly two hours, actually. The whole while, we’ve been on six to eight-lane highways, all first class, as good as anything you’ll see anywhere in the world. What’s really interesting, is that all the while there’d been cranes, and construction everywhere. There’s high-rise office buildings and high-rise residential towers everywhere.

Just the population in Shenzhen is over ten million, so if you put ten million people with the twenty two million in Beijing, that’s over thirty million people, just in these two cities, which is more than the entire country of Australia. About ten percent of the US population, just in these two cities. So, quite remarkable when you actually come and see the size of this place. It’s really is eye-opening as to how large a population this is, and how fast it’s growing, or certainly, has grown.

Over the recent years, there’s nothing second world about the infrastructure here. It’s just amazing. Six to eight-lane beautiful highways everywhere and construction everywhere, so, really an interesting experience if you look out the window. We can’t really see it here, but it’s just people and construction everywhere. I’ll give you another update when we get close up. Bye for now.

Hey guys, we’ve just arrived here to the factory’s whereabouts, twenty minutes outside Guangzhou, which is a big city of about fifteen million people. My guides are here.

This is not really their actual factory. I buy some products from their actual factory, but other products, I’ve sourced from here, so this is not their factory directly. So, effectively, Frennie and Franky are going to be my two guides for today, our brokers, but I don’t mind—as long as I can make my margin, I’m happy. I can probably buy the products cheaper if I went directly to this factory. However, as I said, I’m still making a really good margin. I’m really happy to have somebody doing this work for me. As long as everybody’s making money, that makes sense to me. So, let’s go and have a look around. Bye for now.

Hey guys, I’m inside the factory here, where they’re making some homecare products. I met the whole team. Probably about twenty people, busy packing up a shipment of ashtrays, of all things. They’re so fast that, when I walked in here, there was a semi-trailer literally full from end-to-end, and maybe ten feet high with one shipment of ashtrays.

As you can see, quite a big factory here. Really interesting to be here on the ground. I can’t take you any further inside this factory. They do not permit filming or photography beyond here. So I’ll have to give you another report from outside, but really, great to be seeing it up close and personal. Okay, bye for now.

Hey guys, here I am inside one of the warehouses on their facility. This is one of six warehouses. Look at how many units are out here. This is just a mind-blowing amount of inventory. I wish I could’ve taken you inside the factory and let you actually see the production line in action. Hundreds of workers milling around on production lines, doing one little task, and it gives you a whole new appreciation for what it means when you ask for a really low quantity—one hundred, or two hundred units, just logistically very, very difficult to do. When you see a production line at full scale, pumping out thousands of units an hour, you understand. So, I can’t encourage you enough, if you get the opportunity, come and see this. This company has their own brand, which they ship domestically in China and sell directly, while also selling to customers all over the world, like me. I’m going to keep going with the tour, and I’ll talk to you soon. Bye.

Hey guys, now I’m actually in the packaging room, which is on the top floor above the warehouses, and it’s really fascinating. They just showed me an order that they’re packing up for a customer in the US, who ordered three million units of one particular product. I promised not to reveal who the customer, but it’s a very renowned big brand retailer. Made right here in China, in this particular factory, so right around me, well, I can’t show you right behind me, but there are employees packing up other people’s products into their own brand of packaging. Just before, downstairs, they took me in to the warehouse and showed me my pile of inventory for the order that I’d made, and it really put things in perspective. Over at the corner was this little pile of stuff for me, which is about to be shipped out the US. Really an eye-opener.

As I said, this whole factory warehouse space in here is enormous. It’s just for receiving the boxes of brands to then have their products packed in them for their own private labelling. So, really interesting when you get down here on the ground level and actually see it first-hand. Alright, let’s keep going.

Alright guys, after a really long day, I just got out of the car. We’ve been through four hours of Shenzhen traffic. It’s been an extraordinary day. I’m now back at the head office of the company and we’re about to sit down and just talk about what products we want to get into. As I said, it’s been an absolutely eye-opening tour, and I really, really encourage you to do this at some point. You will forever change the way you see Amazon.

The biggest thing to change the planet in this century was the Internet. The number one retail store on the Internet is Amazon, and when you actually think that you can access that market from wherever you are in the world, and then come to a place like China … When you see the epicentre of that manufacturing—boom, it really gets you thinking about how big a slice you actually want.

Hopefully, you’ve got something to think about. If you do want to come to China, just make sure you ask us any questions. We’ll be happy to help. Hoping you enjoyed this little glimpse. Bye for now.