China Manufacturers and Suppliers – The Basics

US companies sourcing from China will find it easier to do business in the country if they keep certain tips in mind. Here is a look at the top 5 things that will help them gain a foothold in the market and maximize their growth opportunities.

Find a local company that can help US players in China

China is a complex and vast market with thousands of manufacturers. Decades of being the global manufacturing hub has made the country’s supplier chain quite complex. It can be very confusing and difficult for a US company new to China to comprehend this complex labyrinth. This is where a local firm can help ease the sourcing process. From finding the appropriate supplier to entering into negotiations on the US client’s behalf, these local players help with the entire sourcing process.

Understand Chinese culture is different

China has been a great civilization for thousands of years. This translates into an ancient country where the new juxtaposes with the old without any contradiction. Everything from the way people talk to the manner of doing business is different in the country than the US. For instance, people are likely to be direct in the USA, while in China, all business discussions are done in a roundabout way. This is not a strange custom, it is just how things are done in the country. People in China do not expect Westerners to understand their culture fully but showing respect for their venerable customs and traditions always helps.

Appreciate the complexity of discussions

The Chinese way of discussions are intertwined with a concept called Face and which can be loosely translated into English as honor and reputation. There are many ways you can increase Face for your manufacturer. For instance, you can praise them, give them properly wrapped gifts, accept their invitation to dinner or lunch and give them respect when you are in discussions with them. Do not lose control of your emotions as that will be a sign of weakness and make you lose Face. Respecting the other party, and understanding and appreciating the long discussions will help you get more brownie points than you can ever imagine.

Know the difference between Mandarin and Cantonese

Mandarin and Cantonese are two dialects of the larger Chinese language, and it is essential for you to understand the difference. Mandarin is the official language and the primary spoken language in areas such as Beijing and Shanghai while Cantonese is spoken in Hong Kong, Macau, and the Guangdong province and its capital Guangzhou and Shenzhen, regions located in the south of the country. Make sure your interpreter or the local firm you hire (the better local professional firms will know this) do not use Cantonese with a supplier in Beijing and Shanghai, or Mandarin with a manufacturer in Guangdong.

Think long term

Do not plan to source products from China for the short term. The Chinese appreciate and honor long-term relationships and will turn you down if they think you are there for only a few months or years. Think of your relationship in decades. This is also better business sense, as you will develop long-term relations that will hold you in good stead well into the future.

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China Manufacturing – Favorable Business Insights

Businesses looking to outsource their manufacturing to China are often confronted with two divergent opinions. One says that getting the manufacturing done in the country is a piece of cake while the other counters with examples of problems and bad experiences.

The question is – which of these two thoughts are actually correct? And the answer is – both.

The reason for this seemingly inconsistent answer lies in the dichotomy of China – a country equally at ease with its ancient traditions and the modern space age. Businesses looking for a local manufacturing unit to manufacture their products should understand this dichotomy before they select a partner for themselves. One way to go about it is to seek help from a local business services company that can help navigate the often murky waters of selecting the right manufacturing unit. They will help you find not only a unit that can manufacture your goods but also do a host of other things besides.

Read on to find the kind of services and facilities an organization will get while dealing with Chinese manufacturing units.

Industrial Design Services: Over the years, the country has made a name for itself in design services apart from manufacturing. If you are looking for an industrial designer and unable to find a local firm in your city or country, then you can talk to the manufacturer about your needs and you are likely to get excellent product designs from them in addition to their manufacturing solutions.

Sourcing and Supplier Chain Management: The manufacturing units also provide sourcing and supply chain management solutions. This ensures you do not have to worry about vendors or suppliers or the quality of their raw materials and other services. Also, these manufacturers take care of all details including ensuring there are no holdups due to delay in raw materials or components.

Niche High-end Manufacturing: The country hosts the manufacturing centers of nearly all the largest companies in the world. This means that the people are trained across various industries and niche areas. Whether you are looking to manufacture an IC or an entire high-end technical product, they can do the job for you. They have the necessary technical expertise to understand the most complex engineering drawings and electronic circuits and may even be able to offer you a better and cheaper solution than the one you had planned.

High-Quality Products: The Chinese manufacturing units have been catering to the US and European markets for decades and have all the necessary expertise to meet the high-quality standards expected of products in these countries. Their quality control processes are some of the best in the world and ensures no inferior quality products pass the manufacturing floor.

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China Sourcing Companies – Quality Products at Cost Effective Prices

Businesses looking for quality products can take the help of sourcing companies in China to cut down on costs and optimize their financial numbers. There are a lot of reasons why sourcing from China makes sense – in addition to getting the products at economical rates, the businesses get the items much sooner than they otherwise would have and with far better quality.

Here’s how China sourcing companies can help your business.

Get products at cost effective prices

China gives you unrivalled cost savings for sourcing your products. The low cost of labor, raw materials, exceptional infrastructure and the larger support structure for manufacturers allows the country to make products at much lower costs than other nations. Sourcing companies can help your business find the right product you need at cost effective prices that are within your budget restrictions.

Get a realistic idea of other costs

Most businesses forget that the direct cost of the product is only a part of the overall costs. Other aspects such as quality control, transportation, shipping charges, tax, etc. play a significant role in the overall cost structure. A professional sourcing company will be able to find manufacturers who can help you reduce your overall business expenses.

Ease the sourcing process

Doing business in China requires patience and a long-term view of things. New manufacturers may not be willing to do business with you right away. It is at times like these that a sourcing company can help you. They have the necessary contacts and can arrange meetings between you and the manufacturers. They will also mediate your negotiations and work on your behalf while you are away. Having them by your side considerably reduces the timeline for your sourcing process.

Take care of other related matters

From extensive documentation to personal follow-ups, these companies ease your business in China. They offer a host of services such as legal experts to look at agreements and quality assurance teams that make sure the products you source meet your stringent quality guidelines. In addition, they offer other solutions such as engineering design and prototyping services.

The more professional firms understand the importance of quality, price and speed for your business and make sure your company is able to leverage its China connection in the most effective way possible.

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China Wholesale Distributors – Finding a Reliable Distributor

China presents a huge market opportunity for any business seeking to tap its large population. With a population of over 1.3 billion, the country can sustain any business and help turn even a small firm into an industry leader within a few years. The key is to understand and evaluate the present condition of the market in an effective way. Not many people are aware that despite its perceived homogenous culture, China is made of different groups of people and sub-cultures. Each region has its own (unique) history and culture and prides itself in its age-old traditions. Knowing these local culture and customs; helps companies to plan their strategies better and sell more products.

The starting point would be to find reliable wholesale distributors who can market the products to the retailers and eventually to the right consumers. Here is a quick look at how to find a reliable wholesale distributor in China.

Use local help

Many service firms specialize in finding the right wholesale distributors. They have the expertise in various industries, geographies and end-markets, and can work with you to find the distributors you need. With the business processes in China tending to favor long-term relationships, these service providers – who already are in touch with various local distributors – can help you gain the confidence of these business partners and allow you to sell your product quickly.

Know the market

Spend some time knowing the country and understand what people want. For instance, if you sell boat parts, then finding distributors near the larger seaports or inland ports that use the type of products you sell will help you reach the consumer more easily. Also, some of your competitors may already be selling in a particular geography. In such cases, finding distributors in markets or provinces where the competition has a minimal presence will help.

Ask about the wholesalers’ capabilities

Some wholesalers provide end-to-end services, from taking the bulk items or containers from the factory or port to their own warehouses. However, some may not offer this service and you may have to handle this part of the logistics yourself. Also, ask about their market presence. Some may have their own set of retailers to whom they sell while others may not distribute the goods in areas where you think your products will sell better. Knowing these small details will help you choose the right distributor for your business.

China can be a tough market to crack if you do not have the right contacts. And that is why it may be a better option to use a local service firm that can help you find the reliable wholesale distributor to sell your products in China.

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