Every year, tens of thousands of new businesses start purchasing directly in China. And many of them have a bad first experience. The key to successful China sourcing is not a set of tools -- it is primarily a change in mental models. For example, here is a dangerous way of thinking: "It is the supplier's responsibility to ensure my products are made up to specs, in responsible working conditions, and shipped on time." Well, not really. When you buy in your own country, it is true. But … [Read more...]
Rising prices in China: 5 solutions for importers
The RMB rate has been going up steadily against the USD (see below), and labor costs have been increasing even faster. When you add the raises in shipping rates and in certain raw materials prices, prices have often increased by more than 10% a year. What can importers do to avoid getting their margins squeezed? Here are my 5 tips. 1. Become less sensitive to cost increases Can you find a more profitable niche, where your products can be sold for a higher price? For example, if you import … [Read more...]