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Benefits And Drawbacks Associated With Importing Goods From China: Necessary Factors
Each time we see the tag "Made in China" we are reminded that China is a place where goods are manufactured for a fraction of the US cost and sold to over a billion potential buyers. Corporate giants including Wal-Mart are investing heavily in China. Thousands of small to medium sized businesses are getting in on the action as well. In fact, we can say that 2000 was the decade that got thousands of entrepreneurs to investigate how to import goods from China.
China has enjoyed an average 9.5% yearly growth during the past 10 years, and its Gross Domestic Product (GDP) increased from $ 300B in 1985 to $ 1,600B in 2004, larger than the state of California. Meanwhile, its foreign trade volume has increased twelve-fold! Foreign direct investment has hit $ 550B during the same period. China's blistering modernization from 1990-2010 made importing goods from China very attractive to retailers around the world.
The country's first production census revealed that from 2004 to 2007, the GDP growth rate was of 10% annually. In 2007, the officially recorded GDP growth rate was 11.4 %. In 2008, the global economic crisis started to reduce China's growth rate. In the face of these forecasts, the government decided to pour Rmb (China currency) 4 trillion into the economy as an economic stimulus program consisting largely of investments in fixed infrastructure and human capital.
Although at the beginning of September 2009 mainland China was engaged in new trade dispute with the US over the imposition of an emergency duty on Chinese tires, a full-blown trade war has a very small possibility as this is not in the best interest of each of those countries. Mainland China is the largest creditor of the US, while the US is the Mainland's second largest export destination after the European Union. A trade war between two of the world's biggest economies will also be bad to the global recovery just underway. China import export is here to stay, for the moment.
Northern Asia commonly (Japan, South Korea, Taiwan, Vietnam, and Mainland China) is an excellent place for manufacturing products (Vietnam is the same as China fifteen years ago).
The clear advantage of Mainland China today lies in the low production, workforce and better quality control measures, making it by far the most attractive part of the region.
Moreover, bear in mind that Chinese suppliers will provide you with what you request, even when it is not within their production standards. They have an outstanding competence to create a very unique design by combining several existing ideas you might have submitted to them. While Westerners do not normally like (or are even capable to) adapting their production standards to special customer requirements, a Chinese company would look at this a standard feature of their service.
Standardization like ISO or 6-Sigma is not very popular in China, but is adopted by the higher end companies. However, regardless of your order quantity, quality control with China is a MUST. You need to get what you order and in the exact way you ordered it. From unsophisticated to sophisticated products you need to monitor quality control with Chinese producers. Apply multiple QC check points during different stages of manufacturing. An importer's worst nightmare is receiving a full container load of products that is defective due to a wrong screw size, for example. If you still try to sell them, or sell merchandise that you don't know was designed wrong and later falls apart, this brings considerable product returns, angry customers, and an accounting/billing department nightmare. As the CEO of your own company, you are responsible for making sure that your products satisfactorily meet desired specifications.
Importing Merchandise From China - Points To Consider For Would-Be Importers
Perhaps you've wandered into a luggage store in a local shopping mall and wondered where these people get their stuff. Or, you shop on-line for a portable air conditioner and see many sites with impressive product lines, and you think "how do they acquire these products, and how much money are these people making?"
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