Should I Import Goods From China: The Expert Way to Deal With China Manufacturers!
For the last 20 years, Chinas has taken a lead in manufacturing industry. Due to low wages and accessible manufacturing materials, the production costs are fairly low. Which makes China the leading industry to look up to for both small and large scale businesses.
Why Import From China?
It’s no secret that China has a $4T manufacturing output compared to $2.3T that of the US.
According to the book Is China Buying the World, China is the major wholesale shoe supplier of Nike. Coca Cola in China is the fastest growing market in the world. PepsiCo has around 27 plants in China for manufacturing soft drinks, and the company will invest further to expand. It is estimated that about 60% of Walmart products are imported. In fact, Walmart has its global procurement headquarters located in Shenzhen, China. Global companies such as Volkswagen, Bosch, and BASF etc. have also penetrated Chinese market to benefit from its cheap labour and are earning huge profits.
From the chair you are sitting on, to the lamps in your office, and the desk you work on, and even the gadgets you are using—they are all coming somewhere from China.
Even if China isn’t the major supplier source, there comes a U-turn in the manufacturing processes where China is involved. For example, in 2012, Apple had to rely on Chinese manufacturers when it was facing efficiency problems and huge loss.
Even today, Apple is dependent on Chinese high-tech manufacturing companies. Not only the production cost is low, but the manufacturing processes are reliable and worth the investments.
Other Factors That Make China an Ideal Choice:
Finding suppliers from China is profitable in various ways:
- Low wages
- Accessibility of materials
- Great at wholesale production
- Improved quality goods
- Great at designing products precisely as per demand
- Well-organized manufacturing chain
What Chinese Suppliers Have to Offer?
Chinese manufacturers aren’t limited to wholesale T-shirt manufacturer, but a continual trade relationship with China has broaden the scope of their manufactured goods. Be it electronic goods, aerospace equipment, kitchen utensils, or tech gadgets, China manufacturers offer a great deal of profit margin to start-ups via their wholesale manufacturing businesses.
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Quality Assurance in China is the New Thing!
While previously, ‘made in China’ may get mocked for its quality and reliability that can put small businesses quite at risk. But, this stands untrue at present when quality checks are performed and many contracts are signed by manufacturers to ensure their products are indeed of highest quality. Now that the competition is tougher, each manufacturer puts more focus on the quality control. In fact, ‘Made in China’ has now become a ‘cool thing’. This can give start-ups a golden opportunity to use the popular tag for selling their goods.
Chinese are the most reliable manufacturers when it comes to bulk production!
Steps To Follow Through to Deal With China Manufacturers:
Here’s how you can dive into the journey of importing goods from China:
- Identify the product you want to get manufactured. Here are a few options:
- China sandals for women(the jelly shoes and other women footwear are a booming industry globally)
- Custom T-shirts (Chinese are precise in designing, and T-shirts are something universal and timeless)
- Technological Gadgets (Be very careful if you are going to deal with the manufacturers directly. Wholesale suppliers with a pre-made product would be a better option.)
- And the options are endless!
- Do your research to find a reliable supplier in China. Be clear about the quality standard, your budget, the scale of production required by your company, etc.
- Shortlist manufacturers and contact the most suited manufacturers.
- Inquire about quality controls, business licence (but this can sound rude, so if you can search it out another way, do that), manufacturing methods, etc.
- If possible, visit the industry to see the factory manufacturing process, etc. (Or you can do it later once the relationship is established as a long-term one.
- Get quotes and samples to see what you are putting your hands into.
- Negotiate prices for the first MOQ (it’s the right time to settle the costs when the manufacturer is sure that you are interested.
- Import your first batch of products.
- Start selling your goods with a little bit of profit margin.
- If this works, continue the cycle and you may even negotiate further on the prices and MOQ for a long-term contract.
Pro-Tip: Never stop negotiating on each order, because you are now a permanent customer.
Mistakes You Should Avoid While Dealing With Chinese Manufacturers:
Whenever we are dealing with oversees manufacturers for the first time, there can be certain things to keep in mind. Be it a few gestures or be it the experience of dealing with the China wholesale manufacturers.
- Indifference to Types of Suppliers: A lack of knowledge about manufacturers, wholesalers, and drop shippers can increase the costs of production. The best option is to contact the manufacturers who control the production methods and own a factory. While wholesalers would only provide pre-manufactured goods on wholesale prices without the option to customise goods.
- Contacting on Phone: Directly contacting the factory on phone might not be a good idea. They don’t have pretty much time to deal with every new customer individually and explain the entire process or answer the queries. So, don’t bug them via calls. However, once you have mailed them, you can ask them for a specific time to contact and discuss if they may allow it.
- Providing Inadequate Details for Sample:Whenever you are asking for a sample, it’s important to provide each and every detail. In fact, if you have a custom design, you must attach the prototype of final product you want. Make sure that it is a private label company not the China wholesale supplier you are dealing with.
- Not Ordering the Sample:Many beginners overlook the details related to samples. Even if it takes weeks to perfect your sample, you should go for it.
- Take Reviews:Now that your sample is all good to be sold ‘according to you’, you must ask for reviews locally and internationally, even from manufacturers to perform a quality check. Getting into the nitty-gritty of the whole process is extremely essential.
- Never Stop Negotiating:Oftentimes, start-ups don’t negotiate the prices further for the first batch and if that works out well; they don’t negotiate the prices or MOQ for next batches as well. Chinese manufacturers can provide you with a great profit margin only if you continue to negotiate before each order. It’s a win-win situation at both ends.
However, this doesn’t mean you should bring the prices so low that the manufacturer may not want to work with you. And, this wouldn’t be a good idea if the China manufacturer has a reputation with large-scale factories—it wouldn’t care for a small-scale company or small orders!
Undoubtedly, China manufacturers are the leading production industry around the globe. While it’s profitable to work with them, you need to learn the art of negotiation and be very careful while choosing a manufacturer.