Have you inquired about a production facility, only to be told production is done "in the village"? That's quite common if you purchase arts & craft, Christmas ornaments, certain textile products, and similar goods, from Zhejiang all the way to East Guangdong. The production work is distributed across a number of small family-run workshops and/or given to people who will do manual work in their homes -- and often both at the same time. Let's look at each of these situations. … [Read more...]
How to Protect against Copies when you Manufacture in China
For certain types of products (electrical, plastic injection etc.) Chinese manufacturers are often the best source. Production can be performed with relatively high quality and a relatively low cost. However, one of China's major weaknesses is its lack of respect of intellectual property rights. It means many importers have to face a challenge: the emergence of copies of their proprietary products. I made a list of strategies and tactics that should help you reduce this risk. 1. What to … [Read more...]
Is your China factory’s quality standard too low?
Do you work with a factory in China, and wish their quality standard were a bit higher? You are not alone. Here are six pieces of advice you can follow in this case. 1. Say it, and write it, to your factory If you don't communicate your dissatisfaction, nothing will happen. Here is an example of message you can send: "The customers who shop in our stores expect a relatively high quality (higher than average). We don't want them to think, 'Oh, these products are also made in China'. Either … [Read more...]
Tough negotiations of payment terms with Chinese suppliers
Many purchasers are unfamiliar with what is commonly negotiated by other buyers in China, and this is especially true when it comes to payment terms. Some suppliers take advantage of it by requesting terms that are very favorable to their side. And it often leads to a typical "Chinese insane situation" where the buyer needs to guess what is going on in the supplier's head. Here are five questions that you should ask yourself in this case. Question 1: have I understood their … [Read more...]
Chinese suppliers’ lack of reliability: 5 tips for importers
You import from China. You sell to customers who want the right quality at the right time. You know that, if you can't deliver, they will go elsewhere. And, on the other hand, your suppliers say "we'll try our best, don't worry". And you know that they are late, say, 40% of the time and that their products are substandard or defective 30% of the time. Oh, and they might subcontract production without telling you about it, which makes things even worse. As an importer, you have to make an … [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...]