China is a country with its own specificity, characteristic of many eastern cultures. Do you want to start a business with China? We will tell you where to start collaborating with Chinese partners if you have not had such experience before.
Search for business partners
First you need to find potential partners. The simplest and most convenient tool for this is Alibaba. To find a supplier, you can use other online platforms - Made-in-China.com, GlobalSources.com, Gongchang.com. For connoisseurs of the Chinese language, the Chinese analogue of Alibaba is 1688.com.
You can also search for data about suppliers from China in open sources. Google, Baidu, Yandex, Taobao are suitable for this purpose. On the last of the listed sites you can see high-quality photographs of products, study which product categories are most actively sold in the domestic market, and determine the most popular suppliers.
In addition, you can resort to the help of consulting companies that will not only help you find a manufacturer, but will also advise you in the future during the transaction process.
Another option is to visit specialized exhibitions in Ukraine or China. For example, in Guangzhou, China, the Canton Fair is held, which has the status of one of the largest exhibitions in Asia. Here you can get acquainted with the latest products, covering virtually all niches on the market.
The most popular types of business
In China, you can work according to four schemes:
- independent collaboration;
- cooperation with a person-company;
- cooperation with a partner company;
- opening an office in China.
Independent cooperation is the most popular scheme among small and medium-sized businesses. It assumes that you yourself will come to China, hire a translator, choose a company and sign a contract with it. There are a lot of risks involved, but this is the cheapest option.
Working with a human company means that you hire your own representative in China, who helps control product quality and reduce the risk of delays. In fact, you are hiring a full-fledged remote employee. This scheme is suitable for businessmen who have experience working in China, but are currently ordering small quantities of goods.
The third scheme involves assistance from professional companies. This is a completely normal approach that can be compared, for example, with outsourcing accounting or legal services. In this case, most of the risks are assumed by the partner company.
The essence of the fourth scheme is that you open your own division in China with an office and staff. In this case, you will have high-quality operational control, but you will have to be responsible for all risks.
First steps
Preliminary negotiations should be held with Chinese manufacturers. First, send out requests: explain to potential partners what you intend to produce, in what quantity and what quality of the product you expect. This will allow you to examine price ranges, minimum production requirements, and production lead times.
Calculate the cost of production. In addition to running the factory, you should include shipping, customs duties, and certification costs in your cost.
Before starting cooperation, you should check your potential partner. Ask him for the statutory documents and translate them, and then check the company in different databases. The most accessible way is the Alibaba open database.
Ask the potential contractor to provide you with a packing list - a document that states the name, cost, weight and volume of the cargo. This data can then be sent to transport companies so that they can calculate the cost of services for you.
To study the quality of a certain factory's products, you should order samples. The best option is to independently visit at least five production facilities to observe the work process and choose the most reliable factory.
Typically in China, factories that produce similar categories of goods are located in the same area and create thematic clusters. For example, Shenzhen is considered the world center for electronics production, Guzhen for lighting, and Foshan for furniture.
If you are planning a visit to China, the first thing you should do is hire a translator. His services will cost $200, but they are worth it. Factory workers rarely communicate in fluent English, and when problems arise, they cannot even put together two words in it. This is perhaps the most problematic aspect of cooperation with Chinese partners, so do not spare money on a translator.
Carefully write down the terms of the contract to protect yourself as much as possible from defective goods. Clearly indicate the requirements for product quality and state that the product must always correspond to the “pilot” sample. In addition, the production period and sanctions for violating it should be indicated. Remember that Chinese manufacturers very often violate deadlines.
You should constantly monitor production. To do this, it makes sense to send your person to China or start cooperation with a company that provides order support and quality control services.
Manufacturers almost never tell the customer about the defect, hoping that he will not see anything. In this regard, you need a person who will constantly monitor the work process in the factory.
If you are unable to monitor the factory on site, maintain constant communication with the supplier. Always ask about the work process, ask to send you photo and video materials.
The last part of the payment must be made after receiving the goods. This way you can once again be safe from defective products.
Choose a transport company responsibly. Remember that she is responsible not only for delivery, but also for the passage of goods through customs and certification.
A little about the psychology of Chinese businessmen
Chinese businessmen behave pragmatically: if you order a product, they will willingly cooperate, but if not, they will treat you indifferently. At the same time, they appreciate when they are given attention. Therefore, offer them business lunches, give them gifts and congratulate them on the holidays. However, you do not need to adhere to any national traditions or rituals.
China has a system of personal relationships called guanxi. It is based on the concept of “face”. For the Chinese, “face” is the outer part of a person. If you lose “face” in front of a Chinese resident, it will turn into a real social tragedy. If a Chinese suspects that you can somehow ruin his “face,” he will do everything to prevent this. It is curious that even the word “foreigner” in Chinese sounds like “laowai,” which literally means “overseas devil.”
The country represented by the customer does not play a special role for the Chinese. The main thing for them is the scale of the order.
Please note that in China the emphasis is on building relationships, and contracts are concluded as an afterthought and are not given much importance. Chinese businessmen can sign a 40-page document without even reading its contents. Local entrepreneurs do not consider a contract to be the main guarantee of successful cooperation.
Some categories of goods are cheaper to produce in Ukraine. For example, simple clothes. But if we talk about the production of more complex outfits or shoes, then China looks more attractive. In addition, in China it is traditionally profitable to produce equipment and products that cannot be produced in Ukraine due to the lack of equipment and suitable facilities.
Do you want to go to China as a tourist? Our team will help you decide on documents for a visa, travel route, local prices and accommodation.
Chinese manufacturers and suppliers have attracted genuine interest among Russian business representatives in recent years. Many of our entrepreneurs have seen from their own experience that building a business with the Celestial Empire is convenient and profitable.
The low cost of labor in China with its relatively high qualifications, a huge range of products, the ability to choose the optimal price-quality ratio - all this attracts Russian entrepreneurs to China.
Finding a new reliable business partner in China today is not difficult, since Chinese businessmen are always ready to cooperate. This can be done independently or through an intermediary.
Independent search for partners in China
If you try, you can find Chinese manufacturers or suppliers of certain products via the Internet. Many Chinese companies focused on working with Russia have a Russian-language version of their website.
The most popular Chinese sites are www.alibaba.com, www.made-in-china.com, www.exports.cn. These online resources allow registered users to search for manufacturers and suppliers based on specified parameters (product categories, price, region, etc.). On these sites, if you wish, you can communicate with potential contractors.
Information about the most significant exhibitions can be found on the websites www.chinaexhibition.com And www.china.org.cn. During the exhibition, you can not only see and evaluate product samples, but also receive catalogs, as well as communicate with company representatives and even discuss preliminary conditions for possible cooperation. Any travel agency can organize a trip to the exhibition.
Searching for Chinese suppliers through intermediaries
The easiest way to find a partner in China is to use the services of specialized consulting companies that have native Chinese speakers on their staff and representative offices in China.
For a fee, at your request, they will select bona fide suppliers and manufacturers for you, provide contact information, product catalogs, quality certificates, photos of production, etc. If necessary, the list of services can be expanded. So, they can calculate the delivery time and cost, help you conclude a contract on favorable terms, carry out customs clearance, etc.
It would not be superfluous to contact the Chamber of Commerce and Industry of the Russian Federation, whose divisions operate in most large Russian cities. The specialists of this organization will help you establish effective cooperation with leading Chinese manufacturers with minimal risks.
Any business is based on the interaction of several parties, each of which receives its own benefits. To start a business in a new country, or in your own, but purchase goods abroad, you need partners located on the other side of the border. Naturally, various manufacturers are interested in expanding their customer base, but the market is structured in such a way that for each offer there can be several competitors at more or less favorable prices and other conditions. Business partners in China treat businessmen from our country very well and are often open to cooperation.
How to find partners in China for supplies?
If you need a partner who will supply goods from China to Russia, then you need to find a reliable manufacturer. Many enterprises in this country are open to cooperation directly without intermediaries, which simplifies many procedures. In this case, anyone interested can become a partner of China. All you need to do is contact the company’s representatives and agree on deliveries. The main thing here is to find truly reliable people, not scammers. To remove the language barrier, you should use the services of translators from B2B - Translation, who will help you accurately translate contracts and other documents.
A business partner in China can tell you how best to choose supplies and other things if he has already worked with representatives of your country, but he often cannot resolve customs issues. Here you also need to acquire a broker who can handle all the nuances of the customs service. Finding a partner in China to create a business will not be difficult, since there are a very large number of companies here, many of which are not very developed and will be happy to cooperate with foreigners.
Finding a business partner in China to open a business there
If you need a partner in China to open your business in this country, then you should look for a company working in this field. Only large companies can independently enter the Chinese market. It turns out to be much easier and simpler for ready-made companies to make deliveries. The search for partners in China can be done via the Internet. It is enough to send proposals to local companies that work in a similar field. If you need to find a business partner in China, it will not be difficult, but here you also need to focus on reliable people. The main problem is that trusted companies already work with some suppliers from a particular country or from the local market. It is much easier to start cooperation with newcomers.
Where to start a business with China, starting from scratch and without investments? How to make money by reselling Chinese goods and what is better to sell? How to find suppliers and intermediaries?
Hello, dear friends! Welcome to the founder of HeatherBober magazine, Alexander Berezhnov!
It's no secret that many people made their first million by reselling goods from China.
In this article, I will reveal all the tricks about doing business with China from A to Z, analyze expert advice and consider the most effective and profitable business models.
For now, this niche is relatively free: if you decide to start your own business and don’t know what to choose, it’s time to turn your attention towards the East.
Let's get it in order, friends!
1. Business on goods from China - is it realistic to start your own business from scratch?
Chinese-made products account for a significant share of the entire world market. In Russia about 60-80% light industry goods are represented by Chinese consumer goods. Modern Chinese products are no longer as artisanal and low-quality as they were 20 years ago: products have become more functional and durable, and look much better.
Even if you have never been involved in sales and are familiar with Chinese goods only from a consumer point of view, no one and nothing can stop you from starting a business with China and acquiring a new (and very profitable) source of income.
In this area, you can earn from 50,000 rubles every month and at the same time have time for life and rest.
Today, only the lazy do not do business with China. Business with China for resale without investments (or almost without any) is relatively simple and accessible to everyone with basic knowledge and entrepreneurial skills. You don't need to be a graduate of a trade institute or business school to understand how things work in the market.
In essence, the scheme for working with China comes down to three points:
- find goods in China as cheaply as possible;
- deliver it to the Russian Federation;
- sell at a premium.
Don’t rush to object “but what about customs, certificates, document flow, taxes?” Below we will consider this scheme and all related issues in more detail and detail. Exactly philistine skepticism - the main obstacle to any successful entrepreneurial activity.
The second obstacle is lack of necessary knowledge . With the advent of the Internet, information has become more accessible and practically free: an example of this is the article you are reading.
Trade is the most attractive field of activity for budding businessmen. This is much simpler than production: you just need to purchase goods from wholesale suppliers and sell them at retail prices. Learning to do business with China does not take much time, especially if a person has a desire and goal.
So, if you have this very goal and a great desire, then in just 6 weeks you can build a business on goods from China.
And my trusted expert in teaching this area will help you get started -.
I’m already implementing this guy’s tricks in my business and they really work.
2. Chinese manufacturers are more profitable than any other
The interest of Russian business in Chinese goods is steadily growing. China produces everything without which it is difficult to imagine the life of a modern person: clothes, cosmetics, accessories, household appliances, gadgets. Surely your apartment is full of things labeled “Made in China”.
Just 15-20 years ago, plastic Chinese products crumbled in the buyer’s hands; now the quality of goods from China is quite satisfactory, and sometimes even excellent. The stereotype “Chinese means short-lived and wretched” has almost lost its relevance. Even iPhones and other expensive brands are now produced in Chinese factories, since it is inexpensive due to cheaper labor.
This graph reflects the growth of trade relations between China and Russia in 2015-2016:
As you can see, the turnover is not small and it increases over time.
The quality of Chinese products is constantly growing, but prices (at least wholesale) remain low.
What conclusion can be drawn from these facts? Right: You can make good money by buying and reselling goods from the Middle Kingdom.
Wholesale supplies from China can become a reliable and constant source of profit.
Initial costs will be minimal if you use modern information technologies (meaning the Internet) in your business. There are already hundreds of companies operating on the market that act as intermediaries in the delivery of goods from the manufacturer to the consumer: why don’t you join the number of successful businessmen who receive stable incomes using a simple and understandable commercial scheme.
Advantages of doing business with China
Let's list the main advantages of working with China:
- Low prices. When working with local (domestic) suppliers, the markup is usually 10-20% (in the most successful cases - 50%). Buying goods in China and selling them will bring you from 50% to 1000% markup. Cheap labor reduces production costs to a minimum.
- Huge selection of goods. The range of Chinese goods is almost endless and limited only by your imagination. In China you can find absolutely everything, so you can fill your market niche with any goods you like - for example, an exclusive product that has no analogues on the local market.
- The focus of Chinese sellers is solely on sales. Due to competition and dumping, the Chinese value every customer. They are in touch 24/7, you can start working with them from minimum quantities, bargain, request free samples and models, photos and descriptions, and assign favorable delivery conditions. An experienced buyer knows how to reduce the purchase price to a minimum and conclude the most profitable contract.
- Possibility of purchasing exclusive goods. As your business progresses, you can move on to larger, more profitable deals. It is not necessary to work with intermediaries: you can establish direct contacts with the manufacturer and purchase goods from a specific brand that is poorly represented on the market.
Why is business with China profitable?
- Firstly, due to the modern rhythm of life. The buyer today values his time: he will not spend it on ordering and delivering goods from China, it is easier for him to place an order with you.
- Secondly, not everyone will understand the variety of sites offering goods from China.
To understand the functionality, check the integrity of the seller, and calculate the cost of the product taking into account delivery, you need skills and knowledge. Most people will prefer to turn to domestic intermediaries operating through websites with simple and understandable terms of cooperation.
It is much easier for an ordinary buyer to choose a product on a Russian-language website: they always have the opportunity to call the seller or discuss the terms of interaction and delivery.
3. How to start a business with China - 10 simple steps from A to Z
Let's move on to practice and learn how to start a business with China from the first step.
Step 1. Studying business models on goods from China
There are several proven and effective business models that you can use in the early stages of your entrepreneurial career:
- dropshipping;
- Joint purchases;
- offline wholesale sales;
- retail sales;
- work through an online store.
Now in more detail about each business model.
1) Dropshipping
Dropshipping– a method that allows you to start a business with virtually no investment. The essence of this model is extremely simple: you receive money from buyers, and then transfer an application for this product to a third-party supplier, who sends it to the buyer.
You receive a percentage for mediation. The client does not even realize that he is purchasing the product from someone else.
Your goal is to attract customers, convince them to purchase goods from you. Commission fees for intermediaries with this business model range from 30 to 500%. Agree, not the lowest profit in the absence of initial costs. At the same time, you do not need to worry that the product you purchased will lie in the warehouse for months - you buy it only when you receive a specific order from the client, paying with his own money.
2) Joint purchases
Joint purchases- this is when several people join a group and buy goods from an official supplier.
The commercial idea of this event is to save money through wholesale purchasing. Another advantage of this option is reduced shipping costs. Typically, the cost of transporting goods from China is much higher than the price of the product itself.
Subject "Business with China" is gaining momentum on the Internet! Every day, many websites, blogs and simply information products dedicated to this topic appear. Our eastern neighbor has always attracted us with its mystery and centuries-old history. Now Chinese business has been added to this list. Just as mysterious. But, like China itself, business from the Celestial Empire is promising, shows constant growth and, characteristically, is itself striving for Russia, Ukraine and Belarus. Why not take advantage of this?
Your favorite project website constantly pleases you with popular business ideas. From various areas of human activity and entrepreneurship. We also did not ignore this topic -. From the point of view of information, it has scale and breadth, which we share with you when we describe the next Chinese business idea.
Therefore, traditionally, in May-June we review the most popular business ideas from China. Make yourself comfortable and, in express mode, briefly, in about 40 minutes, get acquainted with the most wonderful articles on the topic of Chinese business. By the way, if you read all the business ideas carefully, you will become a real expert in this field. And you can sell your knowledge!
In first place, as our regular readers already know, is perhaps the most popular series on the Internet about business with China - Ideas for business with China.
1.
Review of Chinese online stores, recommendations on where you can safely and quite honestly buy goods from China for resale. Valuable advice - what to buy, how, and who to give it to. The statistics speak for themselves. More than 100 thousand people became acquainted with this cycle in literally a short period of time. And, surprisingly, the material does not lose its relevance. Don’t wait, hurry up, as you know, there is nothing more valuable than new knowledge. Especially free ones.
2.
Dropshipping from China is one of the popular initial forms of business with China. Almost all cases and examples of successful “Chinese” businesses are based on it. The idea is simple - we buy goods in China, sell them to those who wish - at retail or wholesale.
The scheme can be constructed in such a way that the intermediary will have no physical contact with the shipment of goods at all. After all, the Internet works wonders. Using it you can search for both suppliers and buyers. Linking them together. Don’t forget to integrate yourself into this chain, as an intermediary. And make money on the simple movement of goods! This business idea goes well with.
3.
Everything is very simple. A list of the most popular product niches, products from which are profitable to sell in Russia and other countries. The list turned out to be very large and voluminous and has not lost its relevance. All that remains is to choose a niche that you understand most fully and start making money in it. The list is structured so that the information in it can be found by anyone, even those without expert knowledge.
4.
Small and easy instructions to start your own business in China. We reveal the features of this business, the form and principle of organization.
Without this knowledge, your business with China will not be as complete as you would like. By the way, this article tells the whole truth about webinars that promise you Chinese earnings with a margin of up to 500%. We strongly recommend that you study it.
5.
A separate review of some Chinese goods and a number of profitable niches for small-scale and operational trade. Suitable for beginners who want to learn business with China.
After all, any successful path is built on mistakes and learning from past achievements. Without understanding this, it is impossible to build success in the future. This article, like no other, shows this path and ways to achieve results in the future.
6.
By the way, any Chinese business is built on this principle. What you undoubtedly already learned from the first articles of this TOP.
Fermentation bedding can reduce costs and improve the quality of livestock housing in enclosed spaces. Its advantages sell themselves, you just need to have it in full demand in a timely manner. And make money from it!