China is the second biggest economy in the world. It is also the cheapest place for manufacturing and this is the sole reason why China has emerged as a global superpower, which is today competing with the United States of America. The Chinese government, with its far-sighted vision, had built the infrastructure of China such that the country became a haven for manufacturers.
Due to the economic policies and special privileges conferred on the companies along with the cheap labour companies from all over the globe started to flock to China. This major influx in China has made it the superpower that it has become today. It is popularly said that if you are an entrepreneur and you want to set up a factory then go to China.
China offers the cheapest manufacturing of goods globally. Today, a majority of companies in the USA rely on China for the manufacturing of products. China has control of 30% of global manufacturing. Now if you too have made up your mind to set up a factory in China or to source goods from China, then this article is for you.
Sourcing goods from China
Sourcing goods from China is easier said than done. There are multiple impediments and numerous hurdles which you will face and if you are planning to source goods from China for the first time, then you will feel lost there. Regardless that you go there physically or are coordinating with the manufacturer online, it is going to be exhausting and sometimes frustrating.
Here are a few factors that you must consider:
1- Getting the right manufacturer – one of the most crucial aspects when you are sourcing products from China is to get the right manufacturer for your goods. Different manufacturers have different niche areas and it is very difficult to select the right one for your goods. In such a case, you must choose a recommended product sourcing services for you.
These services will help you get the best manufacturer who meets your requirements. Further, since these service providers are natives of China, they already know the ins and outs of the market. They have a huge web of networks between the manufacturers. This network of theirs will help you get the right manufacturer.
You must ensure that the recommended product sourcing services that you choose have at least a few years of experience in the market.
2- Time difference- when you are coordinating with a Chinese manufacturer online, then you must consider the time difference between China and your country. This difference will cause trouble in effective communication between you and the manufacturer. It is best advised that you decide on a mutual time at which you both can interact.
When you choose some recommended product sourcing services then your agents will help you by setting up meetings and communicating what are your requirements to the manufacturer.
3- Language – language plays the most critical role in effective communication. When you communicate with someone who speaks a different language and the communication can never be effective and you will face a hard time explaining what you want. In China, the majority of the manufacturers speak mandarin.
This makes it very difficult for companies from the western world to interact with them. One of how you can interact with your manufacturer and communicate what you want is through some recommended product sourcing services that will act as the channel of communication between you and the Chinese manufacturer.
The agents of these sourcing service companies are Chinese natives or are based in China. Thus, they are fluent in mandarin and proficient in English. Thus, you can easily communicate to them what you want and then the agent will deliver the message to the Chinese manufacturer.
4- Negotiation – if you suck at negotiation then you will need some help because it is going to be a very important skill when you are in the Chinese markets. When you choose to take the help of some recommended product sourcing services then you will be able to execute an effective negotiation and will be easily able to strike a great deal.
5- Sourcing- getting your raw materials is one of the most important decisions that you will make when you engage the manufacturer. The quality of the raw materials will govern the quality of the finished goods. This is why it becomes important that you choose the right sourcing agent to get your raw materials.
You should choose the most recommended product sourcing services because if they are recommended by others then they must have done a good job with their previous clients. Your sourcing agent is expected to pay visits to see that the raw materials are of the right quality.
6- Manufacturing – the process of manufacturing is crucial. Your sourcing agent must pay regular visits to the factory to ensure that the products are manufactured by the right technique and that all the procedures are followed to ensure that your goods are made of top quality.
7- Reporting the progress – your product sourcing agent is like a proxy of you in China. He acts and takes decisions on your behalf in consultation with you. Your sourcing agent must have regular online meetings with you to discuss the progress of the manufacturing process and all progress made in the goods.
8- Customs – even after the goods are manufactured, the probable issues are not finished. One of the possible issues that may arise is that of customs. The customs issues are very tricky and can be handled only by professionals. You must hire an experienced sourcing agent who has experience in handling all these unexpected exigencies.
They must know how to solve these issues and how to get out of these bottlenecks. Only then do they qualify to be your sourcing agent.
Getting products to form China is a difficult task. You should also ensure that these sourcing companies should have at least three years of experience and you should also ensure that the company data is not outdated.