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How to Negotiate with Chinese Manufacturers

The Chinese manufacturers enjoy a strategic advantage over the western manufacturers due to the fact that the Chinese market is small and so they can afford to invest less in research and technology and more in marketing. In recent years China has liberalized its economy and the foreign companies have been welcomed to participate. This trend is very favorable for the manufacturers because China manufactures most of the world products such as cars, shoes, garments, electronics, and many others. This means that the large Chinese manufacturer can cut down on its production costs while at the same time increase the profits by selling in the low margin segment.

However, there are few characteristics of a good Chinese manufacturer that we should look for before deciding to purchase their products. For instance most Chinese manufacturers have a web site for showcasing their products and the design pattern but seldom give information of the technical specification of the products. Similarly most of the companies do not conduct free-flow trade. Free flow means that the company allows the supplier to sell its goods in the market at the retail price and then take the difference between the original price paid by you and the retail price thus earned by the supplier.

Most of the Chinese manufacturers are small in size and do not conduct free-flow trade, therefore they can afford to charge you less for their products. You can find Chinese manufacturers who have established their own factories in third world countries. Many of these factory owners run their own plant independently and can afford to set up their factory in China with the help of Chinese banks. The products produced by these Chinese factories are sold in the local markets at the price fixed by the factory owner and they make things very affordable for the consumers. The quality and brand equity of Chinese products are also very high, so it is very difficult for us to identify a fake product from a real one.

The Chinese manufacturers prefer to source products directly from the raw material producing countries, such as Thailand, rather than buying raw material from overseas. This increases the volume of goods available from these countries at a much lower rate. They use their expertise in the field to get the best deal from the raw material producing countries and sell them at a much cheaper price to us. Many of the Chinese manufacturers are small operators and hence cannot manage to set up huge production plants, or they cannot manage to pay the hefty freight and delivery charges that we normally have to face. Therefore, they prefer to source products from different places and they use Chinese sourcing companies to make things easier for us.

In our view, the most important advantage of using Chinese manufacturers to source our products is that they are extremely cost effective. Unlike American or European manufactured products, Chinese manufactured goods are much cheaper when it comes to the manufacturing and shipping costs. Chinese factories utilize most of the machines that are used in the West and they can source products very cheaply. Most of the machinery that we commonly see in factories owned by Western companies can only be found in Chinese factories. Moreover, many Chinese manufacturers have an excellent machinery record and the quality of their workmanship and materials are on par with those of the reputed international brands.

However, there are certain aspects of Chinese manufacturers that we will not compromise on, which are mainly their price and pricing practices, their overheads and licensing agreements. The excessive overhead that they tend to incur may make it impossible for them to afford to set up a factory in your country and set up their own R&D and manufacturing unit to produce your products. Therefore, we strongly recommend that you work exclusively with a Chinese manufacturer who can readily commit to your project, who has an excellent management team and adequate funding, and who is willing to work within your stipulated margins and time frame.

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How to Find a Chinese Manufacturer

Over the years Chinese Manufacturers have grown to be increasingly important players in the global economy. Chinese factories are increasingly involved in world trade, trading and are playing a more crucial role in the economic development of China and other Asian countries. China is not only the largest producer of manufactured goods but also the largest exporter of goods worldwide.

In the earlier days, it was not easy for Chinese manufacturers to access foreign markets as efficiently as they do today. For example, in the USA, there were many restrictions and terms and conditions applicable to Chinese manufacturers. But, these days things have changed. Today, most of the barriers have been removed and the possibilities for the entry of Chinese manufacturers into the USA have increased a lot. Chinese suppliers can access both the domestic and the overseas markets easily. The development of the internet has made it easier for Chinese manufacturers to access the markets and the opportunities are increasing day by day.

A Chinese manufacturer should focus on developing a strong clientele base in the USA. The services that he can offer to his clients from China will depend on the services that he can offer to his clients outside China. So it is important for the Chinese manufacturer to locate his manufacturing capacity in the right places. For example, a manufacturer located in Michigan can also service products required by clients in Texas and so on. For any business, location is the most important factor and Chinese manufacturers should ensure that they are able to locate their manufacturing capacity in the best possible locations around the world.

Another way to find a manufacturer in. is to conduct research online. You can easily locate a large number of websites that provide you with quotes from different Chinese manufacturers. Comparing the quotes that you receive from these websites will help you find the best manufacturer in.

One of the most important factors that you should consider when looking for a Chinese manufacturer is the lead time required to manufacture your products. Chinese manufacturers have to be able to produce products quickly because there are so many things that require immediate attention in the manufacturing process. For example, an electronic product is usually produced using low quality workmanship, and a manufacturer who produces his goods in less than six months will not last long in the business. Chinese manufacturers who produce in less than six months will have experienced staff, and they will know all about quality control. Chinese manufacturers will usually have an excellent quality control team.

There are many Chinese manufacturers available on the internet. Many of these manufacturers and trading companies are also registered with the Chinese government. It is very easy to find a Chinese manufacturer or a Chinese trader if you follow the tips that have been mentioned in this article.

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Chinese Manufacturers Are Open For Business

For the Chinese manufacturers the Chinese New Year was a time of full glory. It is said that in the spring of 2009 China had new manufactures. This can be a correct assessment, however it is not so in the case of some manufacturers such as those from China. This does not mean that Chinese manufacturers are not manufacturing; it just means that not all of them were participating. We are still waiting for the Chinese Manufacturers to join the European Union, which is an indication of economic hardships in the US and in Europe and it may not be too late for the Chinese manufacturers to come to terms with the reality.

A very important part of the Chinese economy is the IT industry, and this industry will definitely suffer as a result of the slowdown. The fall of the market share for many IT businesses has been as a result of the inability of Chinese manufacturers to compete with their western counterparts on price and quality. However, the reality is that there is no way that the Chinese manufacturers can compete on price with their western counterparts. They have a number of advantages over the western companies and we will see the impact in the market share as the years go by, but the main challenge will be to continue to attract new customers to their brand name while maintaining good sourcing companies.

Some Chinese manufacturers have already started to look at the UK as a market, and it may be a wrong step to take. As far as the Chinese market is concerned, the question is – what will be the next step? Will the Chinese manufacturers be able to compete with the likes of Cisco, Microsoft, Red Hat, Sun Microsystems, etc. in the high-end market? The answer might be “No” if the Chinese manufacturers do not develop the competence to compete with these multinational companies.

In order to build the competence, the Chinese manufacturers need to make sure that they develop their own in-house IT products. For that, they will have to improve their lead time. To improve their lead time, they will need to focus more on quality control, and less on cost reduction. The biggest challenge is probably when the company has a lot of internal staff. The managers should be able to manage the manufacturing process, eliminate waste, reduce costs, and increase the quality and productivity. This is a very big challenge for many foreign IT companies, and this is why they tend to concentrate on lower-cost countries where labor is cheap, and then use subcontractors for the tasks that are not considered to be low-cost, such as designing and maintaining the internal network.

On the other hand, if you are considering importing the goods from China, you should consider taking advantage of the opportunities presented by China. It is a fact that the Chinese manufacturers are quite flexible and open to changes, especially when it comes to the products they are selling. So don’t hesitate to take the chance of building relationships with the Chinese suppliers. It will be beneficial for your business and you will definitely gain a competitive advantage.

Another option for Chinese Manufacturers is to establish direct relationships with distributors and wholesalers. With this approach, you don’t necessarily need to build a local office. You can save a lot of money for marketing and distribution, and you can also save time for international trade. The best thing about doing business with Chinese suppliers and distributors is that they will often help you if they have contacts in high-tech enterprises. As a result, you can enjoy a more comprehensive marketing campaign that will make it easier for you to penetrate the markets and increase the profit margin.