Evgeny Smirnov
bsadsensedynamick
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Business with China
In 2015, a Chinese construction company built a 57-story skyscraper in 19 days.
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370 thousand new businesses over the past 50 years. First place among all countries in the number of plants and factories. Production of components for Apple, Dell, HP. This is China - a country with a billion people and an economic center on a planetary scale.
The influence of Chinese industry affects all sectors of the Russian economy without exception. And goods from China are one of the most popular startups among aspiring entrepreneurs. Having access to the Internet, anyone can easily contact Chinese manufacturers.
Many brands whose products are known all over the world have moved their product production to China. Opening a clothing factory or a high-tech smartphone manufacturing company is equally easy. For this purpose, the territory of China is conventionally divided into economic zones, which provide excellent conditions for each industry. For example:
A bright representative of the Chinese economy is Guangzhou, the third largest city in the republic. Population – 10 million people (more than the population of the entire Belarus). The region is extremely popular among foreign investors and businessmen. Light industry and electronics are highly developed here.
Factories and factories in Guangzhou mostly specialize in the production of products made from silk, cotton, jute and artificial fibers.
Interestingly, Yekaterinburg has been one of Guangzhou’s sister cities since 2002.
From an economic point of view, the benefits of manufacturing in China are due to the following aspects:
Resale of Chinese goods is the most accessible business with China. Opening your own production facilities requires serious investments. If both options do not fit your business model, there is a middle ground - ordering production in China.
The point is the following. For example, you decide to sell copies of Nike sneakers. To do this, you need to send a sample (original) of the shoes to the factory. Specify the desired scope of delivery and find out the cost. The Chinese produce goods at a price below the market price, you sell at your own markup.
Also, cooperation with Chinese manufacturers can be used to release your own brand or modernize products already available on the market. How to do this?
Another way to cooperate with Chinese factories is contract (or OEM) manufacturing. The bottom line is that the customer has the opportunity to manufacture goods in the Middle Kingdom under his own brand, of which he is guaranteed to be the copyright holder. The low cost of the goods received and small initial investments make such cooperation beneficial for the entrepreneur.
The main benefits of contractual cooperation:
If it is expensive to search for a manufacturer using an intermediary, you can try using the online catalog of Chinese manufacturers.
Almost every fifth thing in the world is made in China. In many industries, China holds the lead in production volumes. Here is a list of products that the Chinese produce more than any other country.
Name of product | Quantity | Share of world production |
Personal computers | 286.2 million | 90% |
Air conditioners | 109 million | 80% |
Energy-saving lamps | 4.3 billion | 80% |
Cell phones | 1.77 billion | 63% |
Cement | 1.8 billion tons | 60% |
Pork | 1.5 billion tons | 50% |
Coal | 1.8 billion tons | 45-50% |
Shipbuilding | Total displacement 766 million tons. | 45% |
Despite the lion's share of global exports, most Chinese brands are unknown to Russian and European buyers. This is due to the fact that most of them are focused on the domestic or Asian market. But there are also companies that have made a name for themselves throughout the world.
Here are the most famous and largest factories in China.
The primacy of the People's Republic of China in many industries is ensured by many factors. We will consider the main ones in detail.
Cheap labor. Chinese villages are the main source of labor for the entire country. More often, workers from the villages are used in low-skilled and low-productivity professions. At the same time, wages are mere pennies on a metropolitan scale. About 120 million Chinese live below the poverty line.
The highest salaries are in Beijing and Shanghai. A simple factory worker has an average salary of $500. In the provinces, you can expect a maximum of $250 for a similar position.
Interesting fact: one of the highest paid professions in China is modeling. Girls with European appearance can expect a salary from 300 to 770 US dollars per day!
Another factor that influenced the sharp growth of the economy is the development of the southeastern part of the country. Mass production, high concentration of specialists and money in this region contributed to billions of dollars in influx of foreign investment. Economic and political centers are located here - Shanghai, Beijing, Guangzhou, Ningbo and many others. Around these cities there are a huge number of auxiliary plants and factories. Thanks to this, enterprises have every opportunity for low-cost production and logistics.
The main role in the growth of the country's economy is played by the internal policy of the state. Tax breaks for businessmen, transparent laws and the fight against corruption are bearing fruit. The attitude towards entrepreneurs in China is completely different than in Russia. The Chinese businessman is seen as the driving force behind the country's entire economy. The most comfortable conditions are created for doing business.
And the last aspect that gives manufacturers an advantage in pricing is the fight against environmental pollution. More precisely, her long absence. In the USA and EU countries, the issues of cleaning and reducing production waste are taken very seriously, investing hundreds of millions of dollars. Chinese industrial enterprises have abandoned expensive Western technologies. Now the problem of air pollution comes to the fore.
The ecological situation in the country is catastrophic in some places, 20% of arable land is contaminated with hazardous substances, and smog on the streets is a common occurrence even in the capital, Beijing.
Understanding the criticality of the current situation, the authorities introduced a number of measures designed to reduce emissions into the ground and atmosphere. In order to reduce the use of coal in industry, a multi-billion dollar gas contract was concluded with Russia. The government has introduced the death penalty for environmental crimes. But hundreds of thousands of factories across the country continue to operate, and at the same time, air, land and water pollution continues. We will find out in a couple of decades what this will lead to.
As a result, we note: production in China is an excellent opportunity to start your own big business. This country creates comfortable conditions and limitless opportunities for investors. Such policies often harm their own people, but increased jobs and wages make it possible to turn a blind eye to shortcomings (such as environmental pollution).
The huge volumes of goods supplied from China to Russia are no coincidence. Chinese suppliers not only offer more favorable conditions than in Europe and the USA, but have also seriously improved the level of service and quality of their products over the past few years. Many entrepreneurs are seriously thinking about trading with the Celestial Empire, but searching for goods in China seems complicated and necessarily time-consuming for them.
We decided to debunk this myth and give our customers the opportunity to find the right product without wasting extra time. The Alfa-VED company, a reliable assistant in matters of foreign economic activity with China, sees two ways to solve this problem:
How to find a supplier? The answer lies on the surface: in our age of information technology and mass trade between countries, everything is on the Internet. Therefore, it is advisable to start searching for Chinese suppliers there. Moreover, all you need for this is a computer, laptop or tablet with Internet access and minimal skills in using this technology.
The most famous resources are alibaba.com, page.1688.com (one of the divisions of the Alibaba corporation) and taobao.com. The first one supports not only Chinese, but also English. In order to filter the results by the desired product, just basic knowledge or the help of an online translator is enough.
But the other two, unfortunately, are only available in Chinese for now. To search for products in China through them, you will need the Chrome browser, since it has an automatic page translation feature. If it is not possible to install it, then the best solution would be an online translator, for example, Bing, since it most correctly translates from Chinese and back. For high quality translation, you need to select the simplified version of the Chinese language in the settings.
Having decided on a resource and acquired the necessary programs for searching, you can move on to the main thing. Each site has a search bar for the convenience of users. And here the first problem arises for potential buyers - will the name of the product also have to be translated into Chinese?
Not necessary. The peculiarity of these sites is that the search for suppliers in China can be carried out using English keywords along with Chinese ones; the system will understand such a request and display all available results.
At this stage, you need to conduct a small analysis - whether the search robot returned the necessary products, how many there are and who offers them. If one of the conditions does not meet the requirements, the search query must be reformulated or clarified. Due to a certain language barrier, a feature of searching for a product in China has become the frequent need to enter several variants of keywords.
If the result is satisfactory, we immediately move on to direct communication with suppliers. You need to write to at least 10-15 companies in order to be able to choose among many different offers and find the most favorable one in terms of price and other terms of the transaction.
The statistics are such that not everyone to whom the letter is sent will be able to respond to the offer and satisfy the buyer’s requests. As a rule, the response is about 30-35% - these are the companies that will send their commercial offers to the buyer. If among them there was a seller who was able to provide the necessary goods on terms convenient for both parties, the search for manufacturers in China can be completed.
The main point in communicating with any Chinese seller is knowledge and understanding of the peculiarities of the mentality and established norms. Before you start looking for manufacturing in China, you need to devote a little time to studying them.
The outcome of negotiations is mainly influenced by communication style. In China, politeness and tact are highly valued. If the manufacturer notices that the client is “going on the attack” - pushing, trying to put forward his own demands, bypassing the interests of the seller, then, most likely, he will either offer frankly unfavorable terms of the transaction, or simply stop responding to letters.
On the other hand, the main goal of the Chinese side is to impose its interests and gain benefits unilaterally. For this reason, when searching for manufacturers in China, you should not behave at all softly.
When choosing a factory in China, it is necessary to take into account the characteristics of Chinese production. If you plan to purchase a small batch, you need to carefully study the information about a particular manufacturer, since large factories rarely take on small orders. In those places where production is on stream, the minimum batch of, say, clothing will be 500 copies per article. If you choose small-scale production or young suppliers, then you can agree with them on a batch of 50 pieces.
Another feature of trade with China is that real prices for goods are almost impossible to find in the public domain. A detailed price list can only be obtained through negotiations. When sending the first letter to the manufacturer, you must accurately indicate the following parameters of the product you are looking for:
If an entrepreneur searches for a product in China for the first time, he often thinks about its quality, because the reputation of this country is not always positive. Now the views of manufacturers have changed, and they are trying to be responsible for their product, since they are committed to long-term relationships with customers. The quality of Chinese production today is no different from European. Moreover, many Western companies have long had their own or rented factories in the Middle Kingdom.
Another pressing issue is guarantees, because factories in China always take a deposit of 30% of the final cost of the batch. The probability of fraud tends to zero if all documents for the purchase of goods are drawn up correctly. The main guarantee of the purity of the transaction is the contract, which lists all the duties and responsibilities of the parties.
To be confident in the solvency and honesty of the factory, the best solution would be to use the services of professionals. Specialists of the Alfa-VED company will inspect the factory for cleanliness and draw up all the necessary documents, joining in the negotiations at the stage of concluding the deal.
As one of the leaders in the market of customs and logistics services in the field of foreign trade with China, our company offers several options for cooperation regarding the service of searching for goods in China:
Once a suitable seller has been found, the client just needs to provide us with his contacts and detailed information about the product and we will conclude the deal ourselves, and also take responsibility for the delivery and customs clearance of the goods.
If the search for manufacturers and goods in China is difficult for the client, then we ourselves will find the most advantageous offers among those presented on the market. In this case, the customer only provides information about what he would like to find:
The most accurate technical specification will allow us to spend less time searching and provide the client with exactly what he is looking for.
If you have any questions or need to search for products and products, contact us and appreciate how easy it is to establish cooperation with manufacturers in this country.
Why Yiwu
In the city of Yiwu in southern China, entrepreneurs from Russia are attracted by the Futien wholesale market. This is a huge complex of five buildings 3-4 floors high. All of their internal space is occupied by showrooms of factories located in the outskirts of the city. In total there are present over 70 thousand representatives of Chinese factories.
Futien Market in the Chinese city of Yiwu is a huge city within a city. Only instead of regions it is divided into product niches
Without preparation, it is not easy to navigate Futien. You need at least a guidebook, or better yet, an experienced and qualified guide. Well, for starters - recommendations and first-hand information from a knowledgeable person. Your personal translator in Yiwu is ready to take on the role of a knowledgeable person. He knows where and what to look for on the Futien.
A short list of the most popular goods at Futien Market in Yiwu:
Two key differences between the Futien market and online platforms such as Alibaba, Taobao or 1688.com:
Previously, we purchased manicure and beauty products, which we wholesale to Russia, on 1688.com.And now - 20% cheaper at Futien.Bought online from an intermediary. Now - directly from the manufacturer.
Previously, we purchased these and other manicure products from an online reseller. And at Futien we found a manufacturer from whom we buy at 20% cheaper
You can start exploring Futien Market with a virtual visit. Here's how to organize such a visit:
The result of providing the service “Personal translator in Yiwu” - business cards, price lists and photos of goods from 10 to 40 suppliers
If at the stage of ordering a product you want to communicate with the supplier directly, we are ready to provide a qualified, experienced translator. And if you decide to visit Yiwu yourself, help in the optimal organization of the trip.
The trip will be justified if you are planning:
If you already have suppliers in Yiwu, now is the time to meet them in person. And with a new partner, it is optimal to start a relationship with a personal meeting.
In Chinese business culture, personal relationships between partners are of key importance. Therefore, a personal meeting is an additional protection against marriage and deception. And also - the opportunity to negotiate a personal discount.
Our specialists are located in China, work in the local business environment, and know the realities of the market and the peculiarities of the mentality. All this will allow them to help you get the maximum result from meetings with potential Chinese partners.
If you want to visit Yiwu in person, we will help organize your trip, visits to the market and factories of interest, and provide an experienced translator
During your visit to Yiwu you will be able to:
Our services in Yiwu:
Not all sellers at Futien Market have an export license. And without it, you cannot accept payments from foreign buyers in China. We are ready to take on the solution to this problem ourselves. The money will go to our account, and we will pay the supplier. In this case, you will conduct all negotiations, including personal discounts, directly with the supplier.
You will learn how to find a reliable supplier from China and contact him directly (without intermediaries), as well as who can help in finding suppliers
Trade in Chinese-made goods has made thousands of people millionaires. Right now, many small, medium and large firms, as well as private entrepreneurs, are engaged in the profitable resale of Chinese products. Want to join their number? Read our articles on business with China!
With you is Denis Kuderin, an expert of the HeatherBober magazine on financial issues. I'll tell you what's good suppliers from China and how to look for them correctly, why it is important to attend thematic commercial exhibitions and who to choose for beginners - intermediaries or product manufacturers.
You will also learn what is taught at specialized master classes on business with China and where to find such classes to receive truly high-quality and comprehensive training.
Have you decided to open your own business, but don’t know where to start? Listen to the advice of knowledgeable people - start with trading Chinese goods, and then figure out what to do next.
Business with China is reliable, moderately simple and affordable, while guaranteeing a stable income (if you act wisely and competently). It is likely that you will like this business so much that you won’t even have to repurpose your business - you will simply expand your sphere of influence and develop new markets.
Products with the familiar Made in China inscription make up approximately 80% of all light industry goods in the Russian Federation. A significant part of electronics, household appliances, gadgets and smartphones that are sold in Russian stores are made in China.
Products from China are no longer the same as they were 20-25 years ago. Products have become higher quality, aesthetically pleasing, durable. Some products cannot be distinguished at a glance from their European counterparts. However, their cost is an order of magnitude lower, which opens up excellent prospects for business.
You don’t need to be an economic genius or a graduate of a trade institute to understand how everything works in the Russian-Chinese market.
The business scheme comes down to three key points:
Thousands of online stores on the Runet, which we use more and more often (according to statistics), sell predominantly Chinese goods. In essence, their owners act intermediaries between ordinary buyers and mass Chinese manufacturers goods.
In the diagram presented above, all points are important, but the key stage is the first: find a supplier. The profitability of your business directly depends on the manufacturer, his prices, the quality of his products, and ease of delivery.
Starting a business with China is not as difficult as it seems at first glance. I foresee skeptical objections: But what about customs, certificates, documents, taxes?
In fact, each of these issues is part of the long-established scheme of commercial trade. If tens of thousands of entrepreneurs have succeeded in this, then you will definitely succeed..
And remember: philistine skepticism (and not customs authorities at all) is the main obstacle to successful commercial activity.
Business with China is a long-established and well-established scheme that can bring you a decent income
The number of products supplied from China to the markets of the CIS countries is constantly growing. And wholesale prices still remain low. It is quite possible that your initial costs of starting a business will pay off after the first resale cycle.
I will list all the advantages of trading in Chinese products:
The variety of offers increases the space for commercial maneuvers. You don’t want to sell consumer goods, order exclusive goods or products from brands not yet represented in Russia and neighboring countries.
There are millions of suppliers in China. The product is produced both in large factories in industrial cities and in remote villages in the provinces of Fujian, Gansu and others. The more serious the suppliers, the higher the prices (and quality). And vice versa.
Decide what is most important for you - to earn a reputation as a reliable seller of Chinese goods or to quickly start a business with low-quality consumer goods and “close up shop.”
A simple idea for those who don’t trust online platforms. Go shopping with products of your profile, study the information about the manufacturer on the product packaging.
Sometimes labels tell a lot of interesting things about the product itself and the manufacturing company. It is not necessary to purchase the product - take photos of labels with your phone and study them at home.
If you are looking for a supplier online, carefully study their contacts, website, domain, details, registration documents and any mentions of the company on the Internet.
Businessmen usually keep the coordinates of reliable suppliers secret. But if you show intelligence and perseverance, you will certainly be able to find out useful information.
Alternatively, play the role of a curious buyer and extract real facts about the supplier from the manager. Or buy the product and study the information in the attached documents. Another method is to ask the seller for a quality certificate or find one on the store’s website.
Thematic exhibitions are held both in China and in the CIS countries. Promising and developing companies spare no expense on promotion and searching for partners: they will definitely exhibit their products at such events.
Why is this method good?: you have a real chance to meet a company representative personally and discuss preferential terms of cooperation. Other advantages are that you immediately see product samples and do not waste time on telephone conversations or correspondence.
The Internet is full of specialized sites for business training, but not all of them offer truly high-quality, useful and professional programs. So that you do not waste time and money in vain, I suggest using expert advice - Necessarily take training from Evgeny Guryev.
Among my friends who trade in Chinese goods, there are people who personally completed training in Guryev’s master classes and built their business on the principles they learned about at this school.
If you want to get off to a successful start, sign up now for free. You will learn where to start, how to sell, how to look for suppliers and how to find an original idea for a business.
Interesting nuances about finding a supplier in this video:
Review of popular and moderately reliable sites for searching for suppliers.
Study the functionality, compare, analyze.
Alibaba is one of the most famous platforms for the wholesale purchase of Chinese goods. The year the site was founded is 1999. It operates on the B2B principle - “business to business”. The range of goods is huge, the prices are low, there is a Russian-language version.
There is also easy navigation and quick search for products, there is information about each supplier and the ability to issue a free trade guarantee.
The resource is one of the leading companies for safe and fast purchases of wholesale quantities of goods in China and some other Asian countries. Almost 1.5 million customers worldwide, including well-known international retail companies. Unfortunately, there is no Russian-language version.
A large platform whose main task is connect buyers from all over the world and Chinese sellers. Huge selection of categories, quick search, trusted suppliers. The site has all the conditions for convenient and profitable e-commerce.
Service comparison table:
To run a successful trading business, you need reliable suppliers from China. To find them and then successfully launch your business, visit specialized sites, exhibitions and take training in thematic master classes.
Question for readers
What trade niches do you think are most promising for the Russian market?
We wish you a profitable and long-lasting business! We are waiting for your comments and ratings. Don't forget to share links to the article with your friends on social networks. See you soon!
Today, a significant number of factories are concentrated in the Celestial Empire, but finding manufacturers is quite difficult. When you start looking for a manufacturing plant, no one can guarantee that you won’t end up with a reseller. Often a promoted site is actually a Chinese reseller who does not have an office and has his own interest. An even worse option is that you will stumble upon real scammers, the number of which is growing every year.
How to contact Chinese manufacturers without being deceived? How to check the production scale and direct quality of the product? There are several ways to find manufacturers to start cooperation.
The best Chinese manufacturers: how to find
The first thing worth noting is information about the plant area, production lines, and number of employees. Not all Chinese understand that a factory is a large-scale workshop with several production lines. Some of them suggest that it can be passed off as a handicraft workshop in which there is not a single competent specialist. Accordingly, the quality of the product is low. Ideally, if you personally visit the plant and see with your own eyes what you have to deal with.
Check the factory for certificates. This document indicates the quality of the product and allows you to identify the real manufacturer. The certificates must indicate the manufacturer of the product - MANUFACTURER. In the document you will also find the actual production address.
When requesting a price and invoice, be sure to compare the company name and their location. Because there are some inconsistencies. If the plant is located in one place, and the invoice indicates a company located somewhere in the province, then you are in contact with a trading company.
For those interested in serious investments, there is one correct and effective option - a personal trip to China.