China: an enormous emerging market
China is the second largest economy in the world, after the USA. The Chinese economy has been growing rapidly, presenting a very big and rare international business environment. The import market in China is around 25% of its GDP. It is a large market for exporters, who in most cases need a sales agent or local distributor.
How to find the right supplier and how to ensure that you get what you want, without any problems? Follow these guidelines for success.
Buying something and sourcing is something different
Buying something is mostly easy, if you know the supplier already. Sourcing is the process of finding the right supplier, who can either be a manufacturer, importer or distributor. And sourcing is all about getting the right pricing and delivery conditions.
Have a good procurement strategy in place
Procurement is the overall process of sourcing and buying (or purchasing). You should have a process in place, to optimise the balance between the effort in finding the right sources and negotiating a lower price, and the pricing itself. Typically for larger purchases, it makes sense to do a broad search and, especially where it comes to searches abroad, to hire somebody to do the sourcing for you.
Select the right manufacturers and double check
Before you start ordering complex products or large quantities, make sure that you check your source. If you don't go there yourself, then send somebody trusted, preferably who understands the local language and knows the local situation.
Check the export and import procedures
Import duties can limit the financial advantage of sourcing abroad. And customs formalities can further increase shipping times. Therefore check in advance whether the country that you are planning to source from and the applicable duties.
Alliance experts can help you find the right supplies abroad
Alliance experts is a global network of business development specialists. We are active in all important economies around the globe and meet many manufacturers and trading companies. With our international team we can relatively easy look for suppliers abroad who can provide you with a unique product features or a lower cost price.
Suggestions for further reading
- China IT industry: software and e-commerce opportunities
- International business in China – how to sell to the Chinese?
- Successful trade mission from China to the Netherlands and Germany
- Solar energy and environmental technology in China
- Gaming industry in China
- How to market and promote your business online in China?