New importers coming to China often wear rose-tinted glasses. They find nice samples and smiling salespeople at a trade show. Prices are often lower than they expected. And they reassure themselves with remarks such as "if other foreign … [Read more...]
Procedure for dealing with failed inspections
Quality inspections are only a way to collect information, and present it in a way that allows the buyer to take a decision. Last month I wrote a post about the case where the buyer refuses the products and asks for rework. In that article … [Read more...]
Who should buy the materials when production is outsourced?
The question of who buys the materials has implications on the supplier behavior, on quality control, and on the risks incurred by the buyer. Yet it is rarely given much thought by importers who buy from China or other Asian … [Read more...]
Higher minimum wages in China: what impact on prices?
Since Chinese New Year, several cities--located in the most productive areas of China--have significantly increased minimum wages. Does it mean your purchasing prices will go up? I don't think so. Don't let your suppliers invoke this reason … [Read more...]
Chinese factories: the temptation of inner provinces
The Chinese factories that produce and export consumer products are mostly along the coast. There are no good statistics about this, but I estimate that more than 90% are in the provinces of Guangdong, Fujian, Zhejiang, Jiangsu, and … [Read more...]
Prison labor in China: one more risk to deal with
Importing products that were made in Chinese factories is considered forced labor and is forbidden in several countries. It is also a very high risk in terms of PR/reputation for the importer and the retailer. It is hard to detect and even … [Read more...]
Are Chinese suppliers irrational?
Back when I was purchasing from Chinese suppliers, I was regularly frustrated by what seemed like irrational behaviors. I was wondering if some suppliers were just plain crazy, if they were incapable of consistency, or if they were faking … [Read more...]
Are Chinese suppliers trying to screw the foreigners?
Have Chinese companies screwed some foreigners? Yes, it happens, and not only in international trade. For examples, it seems like most joint-venture deals have performed poorly because the Chinese partner took advantage of the … [Read more...]
Quality standards imposed by the Chinese government
Many importers think that China does not really protect its own consumers, and the theory is that Chinese factories simply follow the (low to inexistent) quality standards of the local market. Wrong!! There is a great passage in the book … [Read more...]
Risks of miscommunication: an example with shipping marks
Everyone knows that risks of miscommunication are very high when purchasing from Asian suppliers. But sometimes an example can drive the point home more effectively than theoretical advice. Yesterday I reviewed a QC report from one of my … [Read more...]
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