An importer can work with his inspection agency in vastly different ways. I distinguish mainly two opposite approaches that I noticed among my clients. A third-party quality control firm can be used as... 1. A provider of trained labor, … [Read more...]
Buying in China is a risky game
Buying directly in China is risky. Very risky, depending on the amount of money a company commits to a given order and to the steps it (doesn't) take to secure it. Exactly one week ago, a small American buyer told me "I should have … [Read more...]
Product inspections are also in the supplier’s interest!
These days I have a booth on the Electronics & Components trade show in Hong Kong. To my surprise, several manufacturers came to see me and asked for information. They took brochures and namecards, and told me they would refer us to … [Read more...]
Dangerous gases in containers
Last weekend I got an interesting email conversation with my friend Paul Wijmenga. He lives in Xiamen and helps European importers source softlines such as shoes and garments. Some of his shipments got stopped in the Port of Rotterdam … [Read more...]
10 Hard Truths For Small Buyers In China
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...]
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