Today, China has become one of the leading destinations for sourcing most of the products whatever may be the type of product you are searching for.
If you are looking for any creative products from China then surely you can find quite a few of them however, they will be not as easy to find.
Today, it is no secret that people consider China the world’s factory, and this title has come due to several measures that were taken by the Chinese government. This has boosted an industrial revolution in the country and today China has reached this position.
Of course, there are many product manufacturers for a diverse range of products right from toys to electronic gadgets, you name anything and you can find a certain Chinese supplier available.
Over the years businesses in China have gained a lot of experience in supply chain management, hence sourcing any products from China has become far easier than before.
However, when you are looking for certain creative products from China then you need to make a special effort. Here in this article, we will share a few tips for sourcing such products.
1. Conduct thorough market research
Similar to sourcing any expensive item you must have done good research and evaluated the products of several suppliers and then finally selected your product, here too you need to make a similar effort on the web to do thorough research.
In China, most of the products are based in any particular region of the country where you will find many industries producing similar types of products.
For instance, if you are looking for any electronics products then areas like Ningbo, Shenzhen, Zhuji, and Guangzhou will be the right place to search for.
Or if you are looking for any sportswear then most suppliers are concentrated in Fujian and Guangdong. You must look for cities like Shenzhen, Guangdong.
You must select a good number of companies to start with and read more reviews about them and then shortlist a few biographypark.
2. Appoint a right Chinese sourcing agent
A China sourcing agent can either be an individual or a company that can offer you a sourcing service from China. They will take care of all your sourcing needs, and support your company’s interests.
You can come across many such sourcing agents having the required skills and experience and knowledge about the products that you are looking for in China.
Most of these agents will be local person who has enough experience in their profession and have a very wide network in the country.
There are a few companies available that may be owned by a certain westerner and established their offices in China who may also be having their branch in their home country.
An individual sourcing agent or a China sourcing company both will offer you the same service and both will be able to interact with you in English and also be familiar with the local language. However, depending upon what kind of service you desire, you can either go for an individual or a sourcing company.
If you are operating from the USA or any European country, then you may find language problems while dealing with any Chinese supplier and that is one of the biggest reasons to hire such services.
However, before you appoint any sourcing agent in China, be very judicious and try to know his reputation and track record very carefully.
If you are lucky enough to get a trustworthy Chinese agent then sourcing any creative products from China can become much easier for you.
3. Ensure quality control for your products
Quality used to be one of the major concerns while buying any Chinese products. The same mindset is still prevalent. However, many Chinese companies have made good efforts to remove this negative tag.
Therefore, while selecting your supplier, you must take enough effort to ensure the right product quality. You may do a few things like the following to ensure product quality.
- Have a detailed discussion about your specifications and quality parameters and ensure that your supplier has understood you and that both you and your supplier have the same understanding.
- Visit China and see personally how they assure the quality of the product in their production line and satisfy yourself.
- Go for third-party inspection before product shipping. Many good companies exist in China to provide such services.
- Make a written agreement that payment will be given only after the quality is approved.
4. Draft a thorough sourcing contract
There are several types of sourcing contracts, and a few of them may cater to products having private labels too. This is where your sourcing contract will be useful to protect your intellectual property. The following are a few types of contracts that you must be aware of:
- The Non-Disclosure Agreement (NDA) version of China is actually an NNN agreement that can protect your private labelled product by thwarting the supplier from using your own IP or from making it public.
- A Product Development Agreement (PDA) will be useful if you are collaborating with any Chinese factory for developing your product
- A Manufacturing Agreement (MA) can define the relationship you have with the Chinese supplier, to prevent any wrong interpretation that can backfire on you.
5. Prepare for an unexpected price increase from time to time
Although China is known for offering its products at the lowest price, however, from time-to-time price rise is quite likely due to several reasons.
You must keep yourself updated with the current economic situation like demand and supply situations. Another thing is that Chinese suppliers often increase prices after your first order has been successfully executed and can make an excuse for the current economic situation.
However, if a genuine reason exists like a shortage of raw materials or an increase in labour price, then nothing that you can do about it.
All that you can do is try to negotiate with your supplier or have another alternate supplier available to you.
Sourcing any creative products from China may not be that easy and often you may come into a giving up situation. However, if you can find a proper sourcing partner in China, then your job can become much easier.