10 facts about business with China, which is necessary to know an entrepreneur
His Work / / December 26, 2019
George Sutyagin
to work with China specialist, CEO of service ChinaToday.
1. Analogue of virtually any product can be found in China
Most likely, you will find exactly the same, only cheaper. It does not matter in Russia originally purchased the product or in another country - it is made in most cases, still in China.
Recently we turned entrepreneur. While vacationing in Thailand, she tried the tea is thought to be local, and decided to organize its delivery to Russia. He took the party on trial. But when the goods razosholsya, decided to buy more and turned to us - not to drive same every time. We work with China and offered to look the same tea with Chinese suppliers. And we found it! Yes, even at a lower price. The client has established a supplier from China, and pleased.
Another businessman produces Lizunov for children. In Russia it has purchased for them jars desired shape at a price of 12 rubles plus 2 rubles for cover. In China, I found the offer from 8.5 rubles, and wondered whether the book is not there all the ingredients for their products. And this is more than two dozen names.
China today can be called the world's manufacturing base, where there exists the goods under any inquiry, taste and budget.
Production iPhone and iPad Apple company also orders in China, finding artists that meet its standards.
Guides in Stockholm directly warn tourists: T-shirts with symbols of Swedish and other products in souvenir shops in the tourist area are made in China. Locally produced only wooden sculpture handcrafted at the price of 1000 dollars in the local currency equivalent.
The notion that China - is the supply of cheap goods of dubious quality, outdated. Chinese manufacturers ready to provide any quality, limited only by how much you and your client is willing to pay for it.
2. If your product requires a certification, it must take place in Russia
For the sale of a number of goods to Russia require a certificate. Russian entrepreneurs often ask such certificates from the Chinese supplier and abandon the purchase, if it does not provide them. Or willing to do so, but only in electronic form.
In fact, even if the supplier will provide a certificate with all necessary seals, in Russia it is just a piece of paper that has no legal force. And the Chinese document is not required for certification in the Russian Federation.
The certification of needThe list of products subject to mandatory certificationFor example, children's goods, chemical products and some other products categories.
There are two options of certification:
- White - ordered test productWhich is sent to the experts. With the receipt of the required document is imported major parties.
- Gray - Party delivered immediately, the certification is carried out afterwards. We can not say that it is illegal, and the right of such an approach is also not called.
The choice is the customer. Most choose gray.
Mediators are usually not involved in the certification themselves, law firms specialize in these services. Some intermediaries have such partners, and they recommend their customers.
3. AliExpress and even Alibaba - is not the best option for the procurement
AliExpress - a retail resource also focuses on foreigners. Therefore, the prices are among the highest in the Chinese segment of the Internet. Alibaba at lower prices, but this platform is also focused on foreigners. From safe sites, where the processes are fully automated redemption and payment of the goods and the money blocked on the account of the supplier until the buyer confirms that he received the goods, and it does not have claimsMore profitable to purchase those that are focused on the Chinese customer.
That's similar resources:
- «1688"- a platform for Chinese wholesalers. If you need more than 10 copies of the product, look for the supplier here. In this case, the sellers may be limited by a minimum party: someone has 10 units, while someone and 1000.
- Taobao - retail resource, like on AliExpress, but for the Chinese. A great option for the purchase of test specimens, which wholesale suppliers often tinker unprofitable. Also suitable in situations where you need just a little bit: five scarves, three swimsuits, 10 packages of different kinds of cosmetics and the like. If you are interested in more party, more profitable to buy at "1688".
- Tmall - retail platform products in the premium segment. Optimal for purchases for personal needs or very small parties of exclusive quality products for the most demanding customers. Of the benefits can be identified free delivery in China and thoroughly tested suppliers, which virtually eliminates fraud.
Businessman ordered Tmall on consignment, but the supplier was not in the presence of the necessary amount. And "1688" similar products was found, with less. Since then, the entrepreneur and purchased at "1688". The cost price of the goods it decreased, and sells at the same price as before.
If you are working with a premium segment, on Tmall you can see if there was something new on your profile. The spread of proposals there is less than on other sites. Also on Tmall can buy coupons or small parties, which do not work wholesalers. In other cases, the product you have chosen on Tmall, better to look for and buy to "1688".
4. If you come to China, you can find a better deal than online sites
Chinese suppliers are trading not only on the Internet. Offline markets where it makes sense to look for them, arranged in particular in the cities of Guangzhou and Yiwu. Market "Futen" Yiwu is the largest in the world and is a "city within a city" with solid rows of shops.
A personal visit to the market - it is an opportunity to find a product cheaper than even "1688". Although sometimes vice versa - on the Internet there are proposals for a lower price. Must be compared in each case.
To come to China is also in order to find a product that not represented in RussiaAnd take with it a niche in their own region or even the country. Or to test business ideas.
Manufacturers of products on the market are usually concentrated in the neighborhood of the same city. Therefore, we can not only look at the goods, but also to visit the factory, whose products are interested. Personal contact with the owner - is an opportunity to reach an agreement on the supply under the best conditions than standard.
To visit the markets and factories is better to find a guide that is well-versed in the area (on the same "Futene" without training it is easy to get lost), and ideally - and owns Chinese. English in such markets, and on targeting local buyers online sites - bad assistant. With the Russian situation is even worse. Machine translation, for example by «Google Translator" is not always help out.
5. If the item is something you are not satisfied before to give it up, it is necessary to talk to the supplier
Precedents, when the supplier on the customer's request makes adjustments in order, occur regularly. Here are some examples.
one customer is not satisfied that the inscription on the packaging of toys and instructions are included in Chinese. At the request of the customer the supplier has supplied these products to the English.
The buyer was ready to take party clothing, but without the stripes with the characters, which were on the test samples. After negotiations, the supplier shipped the goods in the requested form. Another undertaking at the request of the party put products without logo manufacturer.
The owner of a small shop in China decided to order umbrellas with its company logo to sell under its own brand in Russia. On the sample I was ready to take 100 pieces, but I was afraid that because of the logo printing greatly increase costs. Supplier made a counter-proposal: if the order will increase to 150 copies, it will print a logo for free. At that we decided to do.
Suppliers in China willing to go to meet the customer. But on one condition: if they deem profitable deal for themselves.
And if you want to get exclusive product for your needs, in China you can find a manufacturer who will agree to produce it. We recently launched in China the production of gels, nail polish under his brand. After a pilot test, we have formulated requests that need to be improved, and transmitted to the supplier. The backpack that also produce under its own brand in China, we are not satisfied with the findings. Supplier no problem replacing it more reliable.
6. Goods possible best to check stock in China
Common case: received the goods, but inside the package is not what ordered. Or not quite. This is not necessarily due to malicious intent. More common cause - mess in business processes from the supplier or banal inattention. We can not say that all Chinese are completely inattentive to the needs of customers from Russia, but there are quite a few.
One of our customers decided to buy for the kitchen design project. Requirement was pure white, and the supplier has sent the cream furniture and wondered what is so dissatisfied customer. To convince him that the goods must be replaced, it was possible, but with difficulty. Since the discrepancy revealed more in China, return Supplier wrong variant and get the one that was needed was not too much trouble.
Another entrepreneur from China carries swimsuits. This product is fine, and it is always a lot: the confusion of colors and sizes are inevitable. But since everything is carefully checked in the warehouse in China, all the issues of shortage and marriage solved supplier in place. He quickly replaces the item with which screwed up, and only then sent to the recipient of the goods.
Another regular customer carries radio in Russia, chips and other components. Sell such goods in Russia can be a high margin. But in order to detect errors in order picking provider, you need to carefully inspect every unit of part numbers. This work is done in a warehouse in China translators.
When flaws are detected with a complete set of goods already in Russia, to make them something that is usually impossible. And if we can agree on sending the missing pieces, it is long and expensive. If we identify problems in China, the disputes are removed faster and easier.
7. Supplier glad to provide not only the product itself, but also its photo and video
If you need product photos or videos demonstrating the product in the work, say so directly to the supplier or intermediary through whom are making the purchase.
The businessman decided to open a new business - online store children's clothes from China. Looked offers, ordered coupons interesting goods. When received, looked and felt, I ordered wholesale all that much. It's time to run the site. His issue, it will take pictures - and clearly specify the corresponding parameters of quality, size, resolution. Photographers asked a lot of money. After learning about the customer's problem, we asked the vendor to see if such a photo with him. He has given them for free. These pictures client and designed website, a photographer saving services.
Another customer wanted to buy a business machine. I found suitable for the description of an option, but was not quite sure whether it is suggested that he needs. A correspondence supplier stalled. Apparently, no longer understood what was wanted of him. Here client and did not dare to make and pay for the order - suddenly not buy, and it turns out already in Russia. Break the deadlock helped requesting the provider to remove the machine in the video work. Watching the video, the customer was convinced: this is what he was looking for.
8. Some suppliers are asked to transfer the payment to the card or e-wallet, bypassing the site
This is not always a sign of of fraud, Although it also happens. Online cheaters missing in China, including in protected areas. And if in the Russian owners of online stores are asked to transfer the payment directly to the card, to avoid the commission payment aggregator and taxes, in China it is irrelevant.
Tax lion's share of entrepreneurs who work on Taobao and "1688", available and so. This is the result of policies of the PRC government to support small business and e-commerce, for which they honor and praise. A protected online platform does not take a commission on each transaction. They earn a monthly fee or additional services, such as advertising within the site.
Usually Chinese partners are asked about paying directly for other reasons:
- Worried that does not keep within the period for which promise to produce the products, and then client will request the money back.
- Protected from inadequate customer if the product causes a lot of complaints about the appearance and quality - there are categories where such conflicts are inevitable.
- They do not want to freeze the money in the account at the time, while manufacture products and that will reach the customer. After all, if you pay through the site are blocked on the account of the supplier for a period of production of the goods plus 7-10 days for delivery, and its confirmation by the customer. A provider needs for working capital.
Whether to agree to pay directly - it's up to the client. Not the fact that the supplier is required to cheat, but after the transfer of money remains to rely only on his integrity. Yes, and a refund for any dispute is certainly not succeed. Almost always there is a second option - to buy another provider for protected circuit.
9. Remember Delivery
Usually when buying on-site focused on Chinese goods must first be delivered to the warehouse in China. And then - in Russia. At a warehouse bring the goods, it is desirable to determine already when choosing a supplier. And it needs to take into account the delivery channel.
Their are several: through Manchuria Heihe, Kazakhstan, Kyrgyzstan, sea and air. We use two: through Manchuria and through Kazakhstan.
Through Kazakhstan to deliver profitable cargo of high density, through Manchuria - small (which does not weigh much, but has a large amount). For example, blankets or mats cheaper to drive through Manchuria, machines or bearings - through Kazakhstan.
The closer the seller to the warehouse, the faster and cheaper shipping by China. Therefore, better to take the blankets from suppliers closer to Manchuria. A machine - close to the city of Yiwu and Guangzhou, of which more profitable to deliver the goods through Kazakhstan.
If the products in the order are different in characteristics affecting the price, sometimes more profitable to break up such a burden on a few items. In one case, businessman buy magnetic sand for children. Since this is a high-density load, straighten it turned out to be cheaper than separate from other items in the order, which was less than the density. And was the situation when it turned profitable to divide the parcel into seven shipments. In other cases, however, it came out cheaper to wait for the next batch of goods of the same customer and immediately send it all together, en masse, rather than individually.
But to understand how profitable it is necessary to know all the characteristics of the goods. This is possible when it comes to the entire warehouse. And usually businessmen bought various goods from different suppliers.
10. We can not forget about the time difference
The simple fact that keep in mind not all. Simply Siberians and inhabitants of the Far East, where the time difference with China is less than Moscow. China is in the same time zone as Irkutsk. But in the central Russian entrepreneurs often do not take into account that, when in Moscow or St. Petersburg 10 am in Beijing is already 15.00. If you send a message to the supplier at the end of working hours Moscow time, he will answer, at best, in the morning on the Chinese time when we sleep.
The Chinese, of course, hard workers. But even they can not reply to potential customers around the clock.
Hence - the inevitable delays in communication, which often leads to protracted coordination of positions in the order. Especially if they are many and not all succeed immediately reach an agreement.
Points to remember
- If you've found this great product worth checking out, whether in China the same, only cheaper.
- If the product requires certification, do not bother with the Chinese instruments. All the same, you need a Russian, and this problem can be solved.
- Best Buys are usually resource-oriented Chinese buyers, "1688" for wholesalers and Taobao for retail and small wholesale. On AliExpress and Alibaba are usually more expensive because they are aimed at foreigners. Products of the premium segment for itself and very small lots for sale can take Tmall.
- Lower prices than online sites can be found at markets in China, such as "Futene" in Yiwu. Although not always the case. Visit markets worth to keep an eye on the goods, which are not yet in Russia, and personally meet with producers.
- If the goods are not satisfied in some parameters, discuss this with the supplier. Most likely, the game will make it for you according to your wishes.
- If possible, check the goods in a warehouse in China before heading to Russia. At the site easier to resolve the intermediary supplier all issues. When the goods are already in Russia, make it impossible or very difficult.
- If you need a photo or video product, ask the supplier. Probably, he has such material or he is willing to make them for you.
- Paying for the goods directly, and not through the site, you run the risk of running into outright scams and will not be able to return the money in dispute.
- When choosing a provider, consider how far it is from the warehouse, which will deliver your order. And also - how conveniently placed for the selected warehouse delivery of cargo in Russia.
- The time difference between China and Moscow - plus 5 hours. When communication is necessary to make an amendment to the suppliers for it.
see also🧐
- How to open a business franchise and not go crazy: a comprehensive guide
- 8 stories to inspire you to feats of business
- For the purchase of any goods from abroad, you can end up in jail