In the 21st century, China has become what Japan and Taiwan were to the world many years back – a factory to the world. Chances are that a good number of the products that you are using in your home are made in China. These can range from toys to cribs, diapers, carpets, vacuum cleaners, trucks or microwaves. Low labor costs coupled with the advancements in the manufacturing technology in the Far East has made China a dominant player in the manufacturing industry chinese product sourcing.
Many merchants and retailers from around the world now rely on Chinese product sourcing to replenish their stocks. The advantage is not only in the deeply discounted prices but considerable efficiency and quality gains. Chinese made brands are now highly respected even in the West. If you are planning to carry out some Chinese product sourcing, there are several factors that you must put into consideration so as to minimize any risks of fraud, late deliveries, damages or overpaying for goods from China.
Take Time and Build Relationships
Do not rush into a deal before you have built a rapport and established the credibility of a supplier. Business is about trust anywhere in the world. Take your time and build trust with your Chinese business counterparts. Many Chinese businesspeople work on the trust networks to do business and not the formal legal-based business procedures. The establishment of trust networks must be a core part of business strategy when undertaking business sourcing from China.
Many global brands are now opting for China as their top global outsourcing destination. At the same time, there are numerous backstreet companies in China that specialize in making counterfeit or substandard products. Choose companies that adhere to certain standards. One way to establish whether you are dealing with a company that adheres strictly to the best standards is by determining if they have an ISO certification. The best companies for Chinese product sourcing are those small to medium sized companies that have dependable quality standards.
Plan a Trip to China
Even though modern technological advancements have enabled remote business communications and transactions, when you are carrying out Chinese product sourcing, you must be prepared to make a few trips to the shop-floor in China to ascertain the credibility and authenticity of the company.
Know the Logistics
You must clearly understand the logistics of getting your products from the factory floors in China to your shop fronts. Whether you are sourcing from the Chinese steel manufacturers or replica watch makers, you must understand the logistics of getting these products from China to your country including clearing and forwarding costs, whom to work with, shipping costs and the expected time of arrival of the goods to your premises. It is also important to have a backup supplier just in case the current supplier fails to come through.
Understand Manufacturing Costs and Other Rules of Thumb
Build the right management and business structures to save on your procurement costs. Businesspeople who understand the Chinese market usually save a lot of money when carrying out Chinese product sourcing. Check out http://www.chinese-manufacturer.com/product-sourcing/ to avoid some of the many mistakes many importers make and carry out seamless business sourcing for numerous products from China.