Are you importing from China ?
Selecting a Chinese supplier that suits you
1. Which region of China do you purchase goods from?
Maybe you think that as long as the quality and price of the products provided by the supplier are still satisfactory to you, you have not given more consideration to this issue, or you are not very clear about which regions of China these products are most competitive.
Due to the special industrial structure of various regions in China, the manufacturers of certain products have a high density in a region, which is what we usually call industrial clusters. Identifying such an area can bring you more choices and greater profits. The same type of products has formed a benign competitive environment in this area, with richer product types, faster update speed, and more competitive quality and price.
Take the furniture industry as an example. There are 37 furniture production cluster industrial bases in China, distributed in 12 provinces, and each cluster industrial base has its own advantageous products. Among them, the export volume of furniture in Guangdong Province and Zhejiang Province accounted for two-thirds of China. The furniture products in Guangdong Province are mainly mahogany furniture and high-end furniture, and the chair products in Zhejiang Province are world-leading in variety and quality. Another example is petrochemical products. Shandong Province has the largest number of petrochemical companies and the highest density of petroleum pipelines. The products are mainly chemical raw materials. However, the products of petrochemical industrial enterprises in Jiangsu and Guangdong provinces are more of polymer materials and fine chemical products.
2. Did you choose a trading company or a manufacturer?
In many cases, it is difficult to tell whether the company you are doing business with is a trading company or a manufacturing company. The best choice must be the manufacturer. If you are dealing with a trading company, of course business can be done, and the other party can also supply according to your requirements. But because the trading company participates in the service, your purchase price also includes the trading company’s profits. This is not just a question of high prices. Because you can’t get the true ex-factory price of the product, you can’t measure the true quality of the product, and you don’t even know that the product was produced in which region of China. In fact, this is also very important. Because of the participation of the trading company, some of your requirements may not be communicated to the manufacturer in the first time. The verification and inspection of product details, the mastery of production progress, the determination of delivery time, or any of your requirements will be delayed in response or receive an unclear answer. After you paid the deposit to the other party until you receive the goods, perhaps you have been in an anxious waiting period.
3. What is the main product of your supplier?
Most companies produce more than one product. Is the product you are purchasing the main product of this company or a subsidiary product of this company? If you meet a supplier, you are very satisfied with his product quality and quotation. After a few small orders, you think you should be able to make bigger deals with him. However, do you know what products the supplier you choose mainly produces? Is the product you need his main business? How big is his single product output? Is he able to deliver larger product orders in time? What production lines and workshops do they have, in what year did they start production of this product, and how long have they had production and management experience? Companies often invest capital, technology, management, and customer service in their main business products. If you are a customer of the main business product, they will attach great importance to any of your requirements. If not, it might not be so good for you.
4. Don’t blindly pursue big and famous factories, but find suitable suppliers.
Many buyers always hope to find a supplier with a large production scale or a well-known supplier. It is believed that such a supplier has the guarantee of quality and reputation, and the business risk is smaller. We have discovered through long-term observation that this is not all the case. Large companies have their advantages. They have a sound product management model, low capital risk, and large output. These are all the advantages. However, if your order is a very small order for such a supplier, then these advantages you think may not appear. We believe that we should find the most suitable suppliers, not those large or well-known companies. Make your suppliers pay enough attention to you so that your order will be taken seriously and the business will go smoothly.
5. Your order cannot be the supplier’s largest order.
If you choose this supplier, you are his biggest customer, then congratulations, your business risk is increasing.
When your order volume becomes your supplier’s largest order, it means that your risk is increasing. If the supplier has various problems, it will first appear on your product. You are the first person to discover the problem, and you are undoubtedly the first person to be injured.
6. Large Volume & Value ?
If your purchase value is large enough and the purchase volume is large enough, we recommend that you go to China to inspect suppliers on the spot. Who is the person who talks with you in the e-mail and the phone, and how capable, is it an exaggeration? Can the suppliers who only met at the Canton Fair really be completely trusted? These are all worth thinking about. Due to the large differences in China’s industrial regions, the different sources of raw materials, the labor costs in various regions, and the huge differences in the economic policies of the local government, it also involves many factors such as traffic conditions and geographical conditions. Therefore, it is very necessary to go to China to inspect your suppliers.
