China has been the source of global-based manufacturing for years now. China has distinct advantages when it comes to manufacturing and this is why foreign based manufacturing companies’ tie-up and outsource work to Chinese companies.
But foreign companies often tend to falter when making decisions related to buying from the Chinese wholesale suppliers. This could be because of the lack of experience of dealing with the wholesale market in China or because of changing market trends. Here are certain points that foreign buyers need to bear in mind while outsourcing from wholesaler suppliers in China:-
- It is best to hire a trading company rather than tie-up direct with a factory. While the latter method also works, when foreign buyers keep a middleman involved who is well-aware of the conditions on ground zero and is from the local community, the results are much better. The trading companies, once appointed, act as the agent or representative of the foreign buyer and since they know the exact condition of the industry and factories in the local market, he will definitely get the best deal for the buyer.
- Being fixated on price is never a guarantee of the quality of the products. Cheaper prices often mean the use of sub-standard quality of products that will directly affect the quality of the end product. Also dealing directly with a supplier with cheap rates can land in last minute surprises where the factory might include add-on charges that were hidden before. This can drastically affect the budget of the foreign buyer. Hence it is important to research well and explore all kinds of opportunities before finalizing wholesaler suppliers in China.
- Foreign buyers need to study the different existing industrial clusters in China because every cluster has its own specialization. Often buyers land up on their own in a particular industrial zone and are disappointed when they fail to find impressive suppliers there. The problem is that the buyer does not understand the different zones present in the country and the expertise of each zone.
- Another important consideration when dealing with wholesaler suppliers in China is the sampling. Buyers must ensure that they sample products well and only sign on the dotted lines when the sample meets the pre-required standards and is the exact dummy of the final product.