Let's say you have an idea for a product or you think you have channels in the market for certain goods and you want to find a supplier in China thanks to product development and low cost manufacturing. If you google the product name or concept, you will find tons of Chinese suppliers / manufacturers. However, you are by no means sure to proceed, as you want to do business with a capable and trustworthy firm that would meet your specific needs and are keen to set up a business with you. Many people are frustrated because they communicate with suppliers in China for months and then get stuck in getting to the point. The reason is probably that they haven't found the right ones from the start. To successfully identify the right Chinese supplier for you, you need a strategy. This tactic is made up of awareness, knowledge and a good dose of study. In this article, you will find some practical steps to find the perfect Chinese supplier for you.
Steps
Step 1. Understand what you need
Before you begin, you need to know what's available and have a way to categorize this information. Here are some categories to help you distinguish between Chinese suppliers: manufacturer versus third party supplier; large corporation versus small family business; third party supplier with the ability to develop the product internally versus third party supplier who buys and sells only; vertically integrated manufacturer versus manufacturer dealing only with the assembly line, etc. Properly categorizing suppliers will help you understand what you need. For example, if you need to import products in a limited range, you need to choose a manufacturer in addition to a third party supplier. If you have a small business and need scrupulous attention, you should develop a good relationship with a small family business.
Step 2. Do some preliminary research on the internet to further develop your category system in relation to your specific needs
Create a data table to help you record your search results so the work can be done more efficiently and effectively. The table should include columns including the company name, contact information, the type of business they do and the purpose, category (important) and additional notes.
Step 3. Use search engines to search for information related to your product name
The top 100 results would be the most relevant websites linked to the asset you are interested in. You can also find information about your competitors and develop a better perception of the market segment and marketing channels.
Step 4. Use popular websites with business directories to get very accurate information on Chinese suppliers
These online pages are also excellent resources for gaining industrial knowledge.
Step 5. Narrow down the list of suppliers you want to work with consistently
At this point, you probably already know what your real needs are and what you have available. Engage in contact with the suppliers you want to work with and then develop a relationship with them. Next, you will find the right one. The process can be a fun experience and will allow you to get to know a lot of people.
Step 6. Find a local Chinese business to help you
People living and working in China know how to control supplier and business approaches unknown to foreigners; found a guide on the spot, all your business work will be simple.
Advice
- Describe your product in the most effective and complete way possible. 3D and 2D drawings, bill of materials, photos, samples and prototypes are all good ways to do this. Sometimes, words aren't enough.
- The email is useful for exchanging specific details on products, catalogs and price lists. To establish a deeper relationship, a phone call is 10 times better than email. A personal meeting is 100 times better than a phone call. Many people want to start a business, so you have to make it clear that you are serious. Provided you can communicate with the other person (in Italian, English, Chinese or another language), you can come forward and call. No matter how much you understand each other, you can always resent with an email.
- The information also comes from apparently insignificant data; for example, email addresses can reveal useful information about Chinese suppliers. However, don't judge an address too quickly. You never know where useful data can come from.
- Work with suppliers who have already exported their products to Europe or the United States. Pay attention to the relationship with representatives. Many manufacturers could export a good deal of their products to the West via a third party supplier without an exclusive supply agreement. They may want westbound channels, and that could mean more business for you.
- An independent third party can be an excellent idea for a quick, effective cost review of potential suppliers before choosing one. There are many Western-run companies in China that do this work and can provide a good bridge between you and your supplier early on.
- Consider accessing your supplier's customs records for an independently verified list of its cargoes in the West. This will tell you who their customers are, what their loyalty is, and what the volume capabilities of your establishment are. Import Genius offers this hard-to-find information at an affordable price.
- Remember that while the person making the decisions doesn't speak your language, establishing a good relationship (guanxi) with top management is crucial for long-term success.
- A visit to your supplier's manufacturing site in China is the only reliable way to truly know what their capabilities are, to check that the data you have collected about the company is 100% correct, and to see if ISO principles are applied. and those concerning quality standards. Evaluate the organization of the company, the flow of the process, the quality of the goods produced, the packaging, the level of training of the workers, the general working conditions, the maintenance of infrastructures, etc. This will give you some guidance on how the company is run. A face-to-face meeting with the supplier's management team will also give you an insight into their experience and willingness to embark on your project. Plus, you'll be able to establish a friendly relationship, which is crucial to your plan!
- Analyzing the types of suppliers is of strategic importance. It will help you understand where they are, what kind of results to expect and what kinds of things you will need to take care of in mutual cooperation. You may need an expert to help you analyze the information. In your tactic, you will also need to include consideration of future contracts and operations. You may want to seek advice from Chinese professionals who understand Chinese mindset, culture and business practices. You may face a misinterpretation if you visit the provider's website in English or you may omit the data that contains key information.
- Just because a site ranks higher on Google's results list doesn't necessarily mean it's more serious. Some very good Chinese providers do not know how to rank in the top published results, while others do and get their sites placed in the top search results. Use your industrial judgment.
Warnings
- If you send inquiries, you will receive multiple responses from suppliers of all kinds. Some of them may continuously send you data about their products for years and can dodge all kinds of spam protection. You don't want to use your primary email account for these sites. Get in touch with a trustworthy outsourcing company [1].
- Pay attention to suppliers who subcontract your order! When you are faced with an accumulation of deliveries, you should know that Chinese suppliers usually outsource them partially or totally, without bothering to inform their customers! Most of the time this leads to substandard deliveries.
- Beware of sellers of cheap electronics products from China. Many online sellers of Chinese electronic products are fraudulent. Unless you buy large volumes and the products are legally passed through customs, then you are likely to buy the good from a retail or wholesale seller who does not have an export license. This means there is no way to know if the product is real or a fake, unless you are an expert. Famous brands do not allow the supplier to sell below their normal market costs, so the suppliers are either selling illegally or it is, in fact, a copy.
