Q: Why
Source Products from China?
Well,
there are several reasons you should consider sourcing your
products or services from China. Here are the main reasons:
Very low labour
rates and a very diligent labour force
Well trained,
strongly motivated, team oriented, company-loyal, and
literate work forces
A well established
and dynamic industrial infrastructure
A stable economy
and currency
A huge exporting
nation replete with experience
Abundant and
plentiful natural resources,
and
Business-friendly
governmental policies
Why
sit back and watch the giants of industry reap the benefits
of China trade?
Everyone
from
Wal-Mart
to Apple™
have been making
excellent use of China and its productive labour force and
business-friendly atmosphere.
Additionally, many of the more clued-up and savvy small to medium business out on your streets have also taken advantage of the offers China has to make; so, why not you too?
Q: What products or
industries are the best candidates for me in the Chinese
market?
There
are five main criteria to consider:
Firstly,
quantity:
Volume
is the name of the game in China; so, the first question
will be, “How
much of it will you be needing?”
In
general, outsourcing only makes sense when the order size is
at least equal to a transport container; with a minimum
order value of at least
$5,000 USD.
Anything below that and transport and management overheads
tend to be somewhat prohibitive to profits.
Secondly,
labour intensity:
Basically,
the more labour intensive the product, the more you can
save.
Thirdly,
electronic components:
It’s
a known fact that
70%
of the world's electronics are now made in Asia. And in the
case of China - due to its extremely rich cluster of
suppliers of electronic components any and all of your needs
can be satisfied readily and cheaply.
If
you’re currently producing a product that is chocker-block
with branded western components, you can save a huge amount
by using the excellent quality Chinese equivalents.
Fourthly,
tooling intensity:
Of
course due to the cheap cost of skilled labour, due to the
relative difference in living standards, you can save you a
significant amount of money on tooling in China.
So,
if you’re only tooling something like
2,000 – 3,000
units per year, you may find your costs can drop
significantly.
Fifthly,
if you’re a merchant:
Absolutely
anything and everything you can think of.
Q: Why
should I choose Your China Trading Partner sourcing
services?
An
inexperienced overseas company may believe that going
directly to a Chinese manufacturer would necessarily result
in a lower price than that which they could achieve in
working together with us as their sourcing partner.
If
that was true, then I’d be a fool to try to set-up such a
business; and you would have heard a lot of wonderful
stories from your business partners and colleagues, or have
read them in business journals and magazines.
But
you haven’t - have you?
Because
this is not Europe or the US – this is like another planet.
When
it comes to cultural differences, it just doesn’t get any
more different than China!
Firstly,
there is the immense language barrier impediment.
That
Chinese company representative may have his foreign language
challenged boss convinced that he can speak English; but, he
won’t convince you.
You
will discover the new language of
Chinglish!
Joking
aside, there are problems with general understanding and
idea transference, when it comes down to things like
material names and technical concepts etc. These issues have
to be dealt with seriously and effectively to avoid loss of
time and money.
Your
China
Trading
Partner
can easily assist you in these areas, ensuring complete
understanding of your specifications.
Secondly,
the time difference makes for its’ own problems. The time
difference between China, Europe and the US is significant;
and vital manufacturing, or order queries, general and
specific questions and concerns, are handled quickly by us,
HERE,
on your behalf.
No!
We don’t work
24
hours per day. But, we do work until we complete our
assignments; whereas, overseas companies, on the other hand,
working directly with Chinese firms, and without a China
representative, will often find their questions delayed by
at least twenty-four hours.
Thirdly,
finding the right factory at the lowest price is no walk in
the park for the uninitiated. Unlike Europe and other
countries, China has no reliable
Thompson
or
Red Box Directory.
It
doesn’t even have a
Yellow Pages;
I have been here seven years and still haven’t seen a
telephone book - of any kind! Yes, they do exist, but
finding one openly available is another matter.
It
has been suggested, by many, that finding a factory in China
to make one’s custom product is often both a time-wasting
and futile endeavour. Even when once you think you've found
the perfect manufacturing source for your particular
product, you'll more than likely need to visit the factory
at least several times to confirm their technical
capability, capacity, monitor sample production, and finally
quality inspect the finished product itself.
Of
course, the resultant expense in both time and money is
often prohibitive for the average small to medium sized
foreign company.
We,
on the other hand, can work with the factory as your
representative, working to your specified standards and
protocols, look out for any potential problems, and find a
solution to them on site.
Fourthly,
there is legal responsibility and accountability. We can
hire local legal consultants who will ensure that you don’t
fall down a big hole and disappear up your own private
passage.
There
are, in China, a confusing array of laws (which
don’t seem to make sense to anyone, except the initiated),
customs, regional policies, and regulations which will
intimidate all but the most knowledgeable experts in Chinese
corporate law. And we aren’t experts. But we do know where
to find them. You don’t!
That’s
why you need the power of “Guanxi”
(relationships) to get anywhere, or anything done here.
No
Guanxi
means you are on your own, and let the buyer beware.
Q: What
savings can be expected?
When
compared and contrasted with the cost of manufactory in the
US and Europe, savings of between
20-50%
of total cost can reasonably be expected.
Savings
in China manufactory result mostly from lower labour and raw
materials costs.
Q: Will
using Your China Trading Partner add cost?
Yes,
of course it will!
We like eating in restaurants and driving fast cars too.
Seriously
though - in essence, we compose between
3-12%
of the total cost incurred to you in China. Of course it all
depends on the volume of the deal being done.
But
the prime reason clients choose to work through us, is that
we help you save on your total costs. And that’s nice, isn’t
it?
Q: How
do I get started?
For
those wishing to have goods produced in China, make sure you
have a good handle on the complete cost of the item to be
quoted. Remember to add in shipping & handling costs if the
product is currently outsourced, or consult an accurate
time-study report if the piece is produced in-house.
Forward
your specifications, blue prints etc., along with samples to
us by mail, fax or e-mail. Extremely complex blueprints
and/or poor quality originals should be mailed rather than
faxed.
Include
your annual usage, present product pricing, and target
price. The more accurate your information, the better armed
we are to negotiate the lowest price possible.
Remember
we're working directly for you as your company
representative overseas, and hope to do so for a long time
to come. Our price quotations are designed to foster
long-term relationships with each and every one of our
customer-partners.
Finally,
contact us or send an
Information Request
to get started right away.
Q: How long does it take
to get a quote?
We
will provide a free-of-charge preliminary quote within 2
weeks. You can request a formal report of multiple quotes
from multiple manufacturers, together with their background
information and our in-depth analysis of the company. It may
take up to 4 weeks to get a quote after we receive the
drawings and/or samples of your products. It usually takes
us 3-5 weeks in total. Also check out our pricing for this
service.
Q: How
does the shipping work?
We
usually quote your product
FOB,
and we’ll take care of everything in China for you. You will
need to arrange having the shipment delivered from the
Chinese
FOB
port to your door. Usually a transportation company and/or a
customs broker will do the job for you.
Customs
brokers are easily found in the yellow pages and on the
internet.
Q: What
is China's Time Zone?
All of China observes Beijing Time, which is GMT+8.
Q: What
are China’s Business Hours?
Government:
08:00-12:00 & 13:30-17:30, from Monday to
Friday, Saturday and Sunday off.
State
Owned
Enterprises:
08:30-12:30 & 14:00-18:00, from Monday to
Saturday.
Shops:
10:00-22:00 daily, except some private
shops which have days off during stated published holidays.
Q:
What are the major state festivals and holidays in China?
1.
Spring
Festival:
(Chinese New Year) - One week to ten days, usually between
the end of January to the beginning of February.
2.
International
Labour Day: One
week long, starting from 30th April to 6th May.
3. National Day: 01 - 8th October.
PDF Word
Your China Trading Partner - China product sourcing and Chinese company auditing and background checking