Figuring out how to find a supplier to partner with, how to structure the negotiation, payment, and quality control is a critical step to successfully sourcing products from China. In the view of the China sourcing experts, it is not a good idea trying to source products from China on your own. Even the most experienced US and European companies have failed to properly navigate the complex market of the world’s second largest economy.
In this article we are not going to point out some key factors that will show you why trying to source products from China on your own is a bad idea:
Sourcing from China on your own is complicated– Unlike other countries, China is a tough place for the foreigners to do business. It will take a relatively long time for you to identify the right manufacturing company, negotiating a deal, doing the quality check and shipping the product to your own country. The entire process is not only lengthy but also highly complicated. On the other hand, if you select a reputed Chinese sourcing agent, you can easily avoid all these complications and get your products delivered in your hometown.
Chances are higher you end up buying a sub-standard product– China’s rapid rise as a low-cost manufacturing hub is what draws entrepreneurs from all over the globe over here. Expanding range of goods—from televisions and tools to clothing and crockery—for 25 to 50 percent less than the cost of comparable goods made in developed countries. But you need to keep in mind that along with producing different types of produjcts at a lower cost, China also has the reputation of manufacturing low-quality and sub-standard goods. And if you failed to do your sourcing research properly, chances are higher that Chinese companies may lock you in a bad deal and you end up buying poor quality products that no one will buy from you. By partnering with the Chinese sourcing houses, you can easily save yourself from buying low-grade products.
Language Barrier– While taking in cultural, financial, and legal considerations are all important, overcoming the language barrier is arguably the most difficult challenge entrepreneurs face in China. Do keep in mind that very few people in China are capable of speaking English, so dealing with them regarding business is a massive challenge that is hard to overcome.
Chinese business culture is unlike it is anywhere else in the world and to thrive in this market, foreign companies need to have an understanding of the major practical challenges they will have to face if they want to succeed here. Infringement is common in China (T-Mall, Taobao, Alibaba etc.) Businesses are often horrified and extremely distressed when confronting with the large number of counterfeits. Having a qualified sourcing agent by your side would be an added advantage for you.