China is a world leader in supplying a range of manufactured products and is still the largest exporter in the world.
China dominates in exporting products for a good reason. Because of their expansive infrastructure and manufacturing base, they can mass produce almost anything at a lower cost than anyone else, making them the obvious choice for people looking to source their products.
Importing products from China has many benefits – but almost as many risks, particularly for those who may be inexperienced in Chinese business transactions. Here’s a few issues that Australian importers have and will face if they are not careful:
Being Scammed
If you’re starting out in setting up business with Chinese companies, you may fall into the common trap of being scammed. Many people will head to Google and look up “China Wholesale Marketplaces” or something similar, which will result in a long list of websites with factories advertising products. However, not all these websites are legitimate.
Unfortunately, there are many fraudulent listings that look real, and often catch people out. Some businesses have ordered from these companies but never receive their shipment; or they choose a particular listed product only to receive a knock-off item that is inferior and not what they ordered.
It is important to research the companies you are buying from or have someone do it for you. Even better would be to have a contact in China who can visit factories on your behalf so that you can avoid being scammed.
Receiving damaged goods
Importing products is risky. Goods need to travel long distances and are handled by several different people at different points. And unfortunately, this can mean your items get broken, particularly if they are fragile.
If you’re a new importer, you may not know that your items can and should be properly insured. There are different types of insurances that will cover
different disasters that may happen, so it’s best to get advice before you order and before your shipment leaves China.
Communication and Understanding Chinese Business Culture
Communication is vital in business dealings, and it is not just the language barrier that may get in the way when doing business with China. Chinese business culture is unique and is largely influenced by “Confucianism”, which can be a completely new concept to foreign businesses.
The Confucian concept of Guanxi implies that a good relationship network is crucial and must be based on the values of solidarity, loyalty, modesty, and courtesy. Saving and giving face is the most important thing in Chinese business culture. Chinese also hold high respect for elders and pay attention to rankings or position.
It can take years to learn the culture and build the relationships with the factories, and a simple cultural difference could mean the end of the working relationship. It is advised therefore to go through a sourcing agent that already has those connections established.
Get the right advice
TL Enterprises specialises in sourcing quality products and equipment from China to support local businesses. Our Perth-based team are Chinese and have lived and worked in China for many years, meaning we speak the language, know the customs, have the connections, and can create the link you need for your business.
Importing from China doesn’t have to be a risky venture. Find out more and connect with us via our website www.tlenterprises.com.au
