Legal entity and business scope
Ask for the business license of the company that will sign the contract. Its registered scope should include producing or processing bags, not only sales or import and export.
Buyer Guide · Published October 24, 2026
How to tell a bag factory from a trading company.
A factory makes bags at its own production site. A trading company sells bags made by other factories. Both can be legitimate suppliers, but you should know which one you are dealing with and which site will make your order. These seven checks show the difference.
Reviewed by Spirit, Kanrow sales team · spirit@dgkanrow.com
Short Answer
Check that the documents and the production floor point to the same company.
A manufacturer can show the legal entity, the production address, the workers and sewing lines, and the audit or certificate scope for the site that will make your order. These should match the contract, the payment beneficiary, and the export documents. A trading company or sourcing agent can still be a good partner if it names the factory and that factory is written into the contract and the inspection plan.
No single document proves a supplier is a factory. Look for several independent sources that agree.
Seven Checks
What to verify before you treat a supplier as the manufacturer.
Production address
The factory address on the license, the audit report, and the site photos should be the place you see on a video call or visit. An office with no production area is a sales office, even if the group owns a factory elsewhere.
Live production
Ask for a live, unscheduled video walk-through of cutting, sewing, quality control, and packing, and ask to see products similar to yours on the line. Photos alone can be reused from other sites.
Audit and certificate scope
Audit reports and certificates such as SMETA, GRS, SLCP, or ISO 9001 name a specific company and site. Check that the name, address, scope, and validity match the factory that will make your order.
Payment beneficiary
The bank account holder should be the contracting company. If payment goes to a different company, such as a Hong Kong or head-office entity, ask for the relationship between the two in writing.
Export documents
Check who appears as manufacturer or exporter on the invoice, packing list, and certificate of origin, and that the stated origin matches where the bags are made, such as China or Vietnam.
Technical answers
A factory can usually answer construction questions directly: material consumption, stitch density, which line will run the order, and how a sample change affects cost. Repeated delays to check with the factory point to an intermediary.
Questions To Ask
Six questions, and the answers that tell a factory from an intermediary.
| Question | What a manufacturer can usually show | What may point to an intermediary |
|---|---|---|
| Who will make my bags? | A named production site with its address, the line for the order, and a contact at that site | “Our factory” with no name or address, or a different site each time you ask |
| Can I see production now? | A live video of cutting, sewing, quality control, and packing at the named site | Only a showroom or office, or a video that has to be scheduled days ahead |
| Whose name is on the audit? | The same company and site address as the contract, within the validity date | Audits in another company’s name with no explanation of the relationship |
| Who receives the payment? | The contracting company, or a group company that has been disclosed | An unrelated company or a personal account |
| Who is the exporter, and what is the origin? | The factory or its disclosed export company, with an origin that matches the production site | An exporter or country of origin that changes between shipments |
| How is the price built up? | Material, labor, components, branding, and packing explained line by line | Only a total price, with no assumptions behind it |
Group Structures
A head office and a factory can be different legal entities.
Many bag manufacturers run a sales or export office, sometimes registered in Hong Kong or based in a city, alongside production companies with their own names. That does not make the group a trading company. What matters is that the group discloses which company owns each factory, which site is assigned to your order, and which company signs, invoices, and receives payment.
Ask for
The ownership relationship between the contracting company and the factory, in writing.
Then check
That the audit, production address, and certificate of origin name the site that makes your order.
Verifying Kanrow
Kanrow is a manufacturer with four owned factories.
Kanrow's head office, Kanrow Industrial Co., Ltd, is in Dongguan, Guangdong, and coordinates development, sampling, QC, and export. Production runs in four owned factories, each a named company with its own address.
| Owned factory | Location | Reported scale |
|---|---|---|
| Dongguan Kinghong Industrial Co., Ltd | Shijie Town, Dongguan, Guangdong, China | About 9,000 m²; 120 workers; 2 sewing lines |
| Hunan Jucheng Handbag Co., Ltd | Xintian Town, Yongzhou, Hunan, China | About 11,000 m²; 280 workers; 6 sewing lines |
| Vietnam Hecheng Enterprise Co., Ltd | Hoa Khanh Commune, Tay Ninh Province, Vietnam | 130 workers; 3 sewing lines |
| Hong Ye Vietnam Co., Ltd | Duc Hoa Commune, Tay Ninh Province, Vietnam | 120 workers; 4 sewing lines |
Ask which site is planned
Owned annual output is 8M+ pieces, and partner factories can extend capacity to 30M pieces, so confirm which site will make your order.
Check that site's evidence
Request site photos and a live video review, and check the audit and certificate references for that site, including scope and validity.
Factory Verification FAQ
Questions buyers ask about factories and trading companies.
What is the difference between a bag factory and a trading company?
A bag factory owns or operates the production site, with its own cutting, sewing, and packing lines. A trading company buys from factories and resells, and may add services such as sourcing, consolidation, or communication. Both can be legitimate suppliers; the difference is who controls production and quality on your order.
Is it a problem to buy bags from a trading company?
Not necessarily. A trading company can consolidate several product categories or factories. The risk is not knowing which factory makes your bags. Ask the supplier to name the factory, include it in the contract, and allow inspection at that site.
Can a manufacturer sign or invoice through a Hong Kong or head-office company?
Yes. Many manufacturers sign contracts or invoice through a head office or an export company. Ask how that company is related to the factory, and check that the audit, the production address, and the origin on the export documents all point to the site that makes your order.
How can I verify a bag factory remotely?
Ask for the business license and audit reports, check that the company names and addresses match, and request a live, unscheduled video walk-through of cutting, sewing, quality control, and packing. For larger orders, add a third-party factory audit or a pre-shipment inspection at the named site.
Is Kanrow a factory or a trading company?
Kanrow is a manufacturer. Its head office in Dongguan coordinates development, sampling, QC, and export, and production runs in four owned factories: Dongguan Kinghong Industrial and Hunan Jucheng Handbag in China, and Vietnam Hecheng Enterprise and Hong Ye Vietnam in Tay Ninh Province, Vietnam. Buyers can confirm which owned site is assigned to their order.
Verify Before You Order
Ask Kanrow which owned site will make your order.
Send the product reference, quantity, materials, branding, packing, destination, and timing, and ask for the planned production site and its documents with the quotation.