Jenny Liu started this topic @ 02:01 on 11/12/2006
Maybe many people in the forum raise that question, so I would present some points here.
Firstly, import commodities from China is easier than export to China due to the following:
(1) Costs:as you know, China is the NO.1 commodities manufactory center of the world due to it's cost effective labour resources and raw materials. What China imports from developed country are mainly hi-tech equipments, luxury goods, medicine and cosmetics etc.
(2) Government policies: Chinese government encourages export but place quota and high tariff on import. That is the so-called trade barriers. On the contrary, the UK/ EU governments are willing to make use of the advantages of China to ensure a continuable economic development, there is no quota for goods like commodities, crafts & gifts import to US.
Secondly, Know your business scope and poistion in the supply chain :
(1) In the market, there are Manufacturers, Importers, Distributors, Wholesalers, Retailers, Agents, Traders, Buyers, End users...they all place different roles. If you are a retailer selling various goods, you may work with more than one wholesaler, the same for wholesalers with manufactures.
Eg. US Wholesalers buying directly from Chinese manufacturers or through agents/traders and then selling back to US retailers, retailers doing business face to face with end users. In this case:
a) Wholesalers buying directly from manufacturers, some of them set up their Chinese representative office to inspect factories,follow up orders and assure quality. This is very safe but with high operation costs. Question is "what is your budget for that?"
While some of the wholesalers do not use this way, they do sourcing by attending business shows or go to the Chinese wholesale market or get factories through the web. Question is " How much time you can put on this? Due to the unfamilar with Chinese market and info. asymmetry, are you confident that you can locate what you want?"
b) Buying through agent. Some cooperate with the local chinese trading companies who will be responsible for the products and delivery, make sure quality is conform to pre-approved samples. This way is cost effective with good service. But the question is "how to get a reliable trading company at lowest costs?"
Thirdly, other elements to be considered when do import/export with China:
(1) Transportation cost, sometimes shipping costs is higher than the goods value.
(2) Custom clearance issues.
(3) Communication.
RE: How to import/export with China...
Jenny Liu | 11/12/2006 02:02 AM
Thirsty after writing the above:::
I have a question here:
If you are a retailer or want to be a retailer, will you direct buying from China? Did you count how much the margin difference is when you buying from Wholesalers and buying directly from China?
Let's discuss....
RE: How to import/export with China...
womble | 12/12/2006 05:17 PM
I have found on many occations that once duties shipping and vat are paid it can be cheaper to source from the UK,
A lot of Chinese are now taking full advantage of gullable traders and charging just under the Uk wholesale prices be warned.....Also watch out for Agents acting as Agent for other agent it get s crazy ...look on Alibaba.com and you will see the same products offered by many different so called manufactures that clearly are not ..how do you find out if these campanies are the manufctures and not the agents for instance do a search on Alibaba for "as seen on TV" and see how many identicle item s come up.
I buy alot of goods from China and its very tricky unless you have good contact in the UK with a Chinese agent
Yours martin
------------------------
Best line in the film Apollo 13 Tom Hanks said One day they will have a computer that will fit into one room" ....classic
always ask why !
RE: RE: How to import/export with China...
Jenny Liu | 13/12/2006 08:29 AM
Hello, Martin: Thanks a lot for your time and reply...
What you've stated are definitely the negative side of doing business with China. I donot deny that the phenomenons may happen because of the market is not as canonical as that of UK. But credibility and good reputation becomes more and more important during these year because of the market competition. A demoralized compnay or agent Can just cheat customers once, they cannot go far and will be kick out of the game soon.
I think what you faced is general issues for many people who do not know China and the process of import, they do not know how to recognise who is real manufacture and which one is the most reliable agent, even they do not know how to get goods in UK after placing order....
What I would say here is :
(1) Have you checked how many things around you are made-in-China in UK? I checked, countless! It shows the business relationship between China and UK has been long time and the stable quanlity of Chinease goods has been accept by UK consumers.
(2) Low production cost of Chinese product is a fact can not be denied. UK is a country relies a lot on import. Duties and Vat. are fair to all products from anywhere. The only difference is shipping charge. Shipping charge various upon different ways of shipping. If you want goods arrive at your door within 3 days, the forwarder costs will be very high. But there are many other choices can lower the costs...if you are interested, I can tell it in more details.
(3) There is no lowest costs, what you can do is to set your own margin bottom line and then choose the risk level.
If you want good service & low risk, copperte with agent (assume it is reliable), the Chinese agent in UK may provide the best service but you or other buyers will definitely buy the bill of its operation costs in UK.
You want to get manufactures directly, you will bear more risks but you steer clear of agents, you get more profits.
In addition, agent can help you do factory and products inspection, also agent can help you locate more better vendors that not only in Alibaba list. I have check Alibaba, to be frankly, I also feel it was tricky and I do not think it's coverage is wide.
All are uneasy espercially startups. I hope my post can help you understand the import/export business with China more, and trust Chinese people are not so bad as you suppose.
RE: How to import/export with China...
PeterZ | 19/08/2008 02:41 PM
There are many steps in the import process, and every business needs to ask whether it makes sense for them to work directly with an overseas manufacturer, or work with an experienced and value added middle-man to provide services.
For companies interested in working directly with overseas suppliers, Global Sources (http://www.GlobalSources.com) provides a directory of verified suppliers that have been physically visited by the company's staff. This helps ensure that only real companies with real products are listed on the site.
The company also runs the China Sourcing Fair trade shows (http://www.ChinaSourcingFairs.com) where importers can meet suppliers face to face.
There is a fair amount of information available online for new importers including Smart China Sourcing (http://www.SmartChinaSourcing.com) and a google knol (http://knol.google.com/k/peter-zapf/how-to-import-from-china/utcv4v55hpt7/2#)
For people that don't want to focus their business on learning and executing the import process, working with an agent or a trading company is often a good choice.
RE: How to import/export with China...
vitjirack | 22/11/2008 09:26 PM
If you need to find a quality supplier from China just go to DoTradeEasy.com and search or put your equiry. All is for free!