• ftr_soc1
  • ftr_soc2
  • ftr_soc3
  • ftr_soc4
  • ftr_soc5

Sourcing in China- The Mistakes Everyone Makes

By Jesus David Cano Romano
May 20, 2016
mistakes


Here at China2West we have over 10 years of experience when it comes to manufacturing and sourcing in China. Over this period of time our team have seen numerous businesses make the same mistakes that ultimately lead to a less profitable, more risky, and time wasting business venture. Here are a few mistakes that are made when sourcing in China.

Thinking that cheaper is always better

China and the rest of Asia are known worldwide for their unbeatable prices and cheap labour, so it’s not surprising that businesses with a tight budget who are price sensitive decide to source here. However cheaper isn’t always better. Sometimes it can reflect poor quality and lead to the making of products which aren’t suitable for purpose.

Choosing a partner with no western experience at all

It is vital that you chose a partner who has experience working with western clientele. Do your research and ask around. Speak to other customers contracted to them and ask their opinions. If they’ve never sourced for western customers before then there is more than likely a reason why.

Having nobody in China throughout the process.

It is important that you have someone on the ground in China who can check the progress from start to finish. A lot of resources can be wasted on projects which are completed to an unsatisfactory level. Quality control is essential when sourcing in China as its better to fix a problem as soon as possible saving time, money, and reducing TTM (time to market).

Assuming China is like home

Doing business in China is a whole new ball game. With an emphasis on relationships; its ‘guanxi’ culture is nothing like the west. Agreements aren’t always set in stone and prices can change at any stage in the process. The Chinese attitude to the word ‘no’ can create problems, even if they don’t have the capability to meet your demands they will agree to your terms anyway to gain the contract. Do your research.

At China2West we quote realistic prices, are acquainted with Chinese custom and have the experience to cultivate a successful relationship between you, us and your sourcing partner.