Many importers have no clue about the factory location. All they know is the general area, when they purchase in FOB terms, because they know the port of shipment (for example, if they purchase "FOB Shenzhen", the assembling factory is in … [Read more...]
Product development with chinese factories
Most Chinese factories are very good at reproducing a physical sample... and not as good at respecting a blueprint or a set of written specifications. Importers often waste a lot of time to get to a "perfect sample", before production … [Read more...]
Probable appreciation of the Chinese yuan: effects for importers
It seems like the Chinese yuan (also called the renminbi, or RMB) will start gaining value again: The People's Bank of China said that in response to the global economy's continuing recovery, it will enhance its exchange rate's … [Read more...]
How to decrease a minimum order quantity
One concern many small buyers have in China has to do with the minimum order quantity imposed by manufacturers. It is actually the barrier that keeps many retailers working with importers/wholesalers. But some smart importers have figured … [Read more...]
Chinese trading companies and their dirty little secrets
Before you read this post, I have to emphasize that some Chinese trading companies here--including Hong Kong--truly create value for their customers. What I wrote below does not apply to all intermediaries. But I observed it so many … [Read more...]
The role of reputation in China OEM business
In the US or in Europe, private companies are very careful with their reputation. They know that angry customers tell their bad experiences to their friends. Poor customer service can kill a company, and this is more and more the case … [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...]
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...]
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...]
Pros and cons of sourcing products in India vs. China
What are the relative advantages of China over India, when it comes to sourcing products? The China Law Blog came up with two different posts covering this question... And a reader called Joel Waldman came up with very interesting comments … [Read more...]