China Imports for Dummies - Finding a Supplier

[yuemax]

Hi all,

This will be the first of a number of articles that I will post regarding doing business in China... As some of you know, I have been living and working in China/HK for about five years, and originally from KZN.

How to find a reputable Chinese supplier?
There are three main trade shows in HK/China, generally April and October:
1. Global Sources, near HK airport
2. HKTDC, in WanChai
3. Canton Fair in GuangZhou

Typically, the exhibitors will have a squeaky clean stand, with a bunch of girls with fair english skills. They will push for a deal to be agreed on at the show, with cost incentive.

DO NOT MAKE ANY AGREEMENTS AT THE SHOW!!!

If you feel that you have found a preferred supplier, try arrange to visit the factory. If you do visit the factory, be sensitive to the management - you will need their cooperation later, if any problems arise. Do not let them loose face at any time. It's a real challenge to understand the Chinese mentality - even for me after 5 years living here!

Next, if you wish to proceed with a vendor, arrange for a Factory Audit (shameless punt, my company! www.TopInspection.com ). This accomplishes two things: 1. it gives you a good overview of the manufacturing capabilities of the factory, and, 2. it sends a clear message to the factory that you are doing serious due diligence, and that you care about quality.

In my next post, I will go into Initial Production Inspections, and Incoming QC procedures.

Cheers,
Max

[kahoel117]

good to know this information.
i'm currently importing some goods from china, through alibaba. sometimes have to be carefull and one dont have a sample and buying a sample item to try is expensive.
cant wait for your next posts

[robinsonwang]

good to know this information.
i'm currently importing some goods from china, through alibaba. sometimes have to be carefull and one dont have a sample and buying a sample item to try is expensive.
cant wait for your next posts

The right person to work with is the most important thing!

[AmithS]

I have an excellent friend of mine that deals with logistics and clearing etc... if anyone needs the help... he has been in business now for over 20 years.

[yuemax]

Hi Kahoel117,

Before placing an order, there are two critical steps regarding the product itself:

1. VERY detailed specification document - depending on the nature of the product, the order volume, and risk, you may need to develop a detailed BoM - in English and Chinese (shameless punt: if you need translation services, PM me!).
2. Sample, and Pre-Production Samples - again, depending on the nature of the sample, and your potential order volume, that cost should not be too big, and you could negotiate for the sample fees to be deducted from the purchase order invoice amount.

Again, the need for on-the-ground QC is critical so as to achieve product conformity.

Cheers,
Max

[yuemax]

I have an excellent friend of mine that deals with logistics and clearing etc... if anyone needs the help... he has been in business now for over 20 years.

I'd like to speak to this friend of yours, as there is synergy between logistics, and the QC work that I am doing here in China - especially if they are from SA, as I look after a number of key accounts here and may also be able to push some business his way.

[yuemax]

The right person to work with is the most important thing!

Yes - absolutely - the only problem is that things in China can change so quickly.

About three years ago, there were a few changes in the bank lending policies in the Pearl River Delta - a lot of reputable factories went belly-up within the space of a few weeks... I know a bunch of foreign investors bought some of these factories at a fraction of their value, and opened shop again. Things move so fast here...

你真的在南非吗？

[shani]

The right person to work with is the most important thing!

Yes ,The working attitude of the person is very important.

[shani]

Hi Max.
Glad to hear that you have stay in China five years. I am a Chinese.
Wish you are happy everyday.

Cheers,

Shani

[kahoel117]

i want to import some electronics/networking equipment from china. especially from huawei and zte. is there a way to buy from them directly ? thus cutting out the middleman.

[yuemax]

i want to import some electronics/networking equipment from china. especially from huawei and zte. is there a way to buy from them directly ? thus cutting out the middleman.

Yes, it is possible, but with corporations of that size, they may have high MOQ's and difficult payment terms...

It would also require you to develop a "face-to-face" relationship with them. Unfortunately, with their industry, there are a lot of sharks so, building "guanxi" is critical for cooperation, price and terms.

ZTE offices are just up the road from my office, and they have a number of manufacturing locations.

What products are you looking to import? What volumes?

Cheers,
Max

[kahoel117]

@yuemax

thx for your reply. i see what you mean by dealing directly with them. MOQ's is usually in the thousands too.
mostly 3g modems (unlocked) and some other networking equipment. volumes would be small as we're just starting out. currently we using alibaba as a platform to buy certain stuff, and the rest locally. which is so far a good experience, though expensive just for delivery.

[yuemax]

If you are looking at smaller shipments, you might also consider coming out here and going to the electronics market in Shenzhen. You should be able to get a reasonable MOQ, and also be able to arrange shipment from China side, which is generally cheaper than if you arrange it from SA side. In Shenzhen, there is are a few markets, the biggest being HuaQiangBei. There are a few in Hong Kong as well, but they are not as flexible in terms of price, and quality. If you do come out, I can arrange a translator/negotiator for a decent price.

Cheers,
Max

[yuemax]

...Just another thought...

If this is going to be a fairly long-term project, I would really recommend a trip out. Dealing via Alibaba is risky, rather invest in a few days here in China, meet and build up a bit of a relationship. Much safer...

[kahoel117]

thanks max. going there to "shop" would be best , and knowing people there who knows how the local business works will be great.
will definitely consider it ...