advice needed on importing from china

[mc-jinx]

I am looking to make a trip to thailand and china early next year with the intention to find a product/s to import over to the uk and the sell.

what sort of items should i be looking for , i have saved alot of money for this trip and am determined to take advantage of this chance!!

any help is very much appreciated.

[mediator]

I was a speaker at an event earlier this year at Leeds University advising on doing business with China.There were two Chinese lawyers on video link from Shaghai. Their message was that it is vital to ensure that, if disputes arise, you do not find yourself before the chinese courts. Apart from the cost and inconvenience, they inevitably find for the Chinese company!

You must never go into international tade without putting in place a policy as to how to handle the inevitable disputes. With China there are significant cultural differences as to how disputes are handled and addressed. Relationships can be damaged at a stroke with threats to sue. On the other hand if there have been misundertandinsg then they need to be sorted out to preserve future business.

Arbitration is a common route to take in international trade but it siffers from cost and the fact that it involves a neutral imposing a decision against the wishes of one party, sometimes even of both. Whatever the outcome you will be unlikley to do business with the other company again. So even the winner in arbitration loses out on future business.

The best solution is mediation. My company is a leading pioneer of online mediation, appropriate in long distance business disputes. In mediation, a neutral does not make or impose a decision but assists the parties,through a series of confidential discussions , to reach a solution to which they both agree. Importantly, he will always try to ensure that the business relationship is maintained so the parties continue to do further business together.

Mediation requires the agreement of both companies. It may be less easy to obtain that agreement after a dispute has arisen. If the terms of business of the Chinese company requires the Chinese court to deal with any disputes then they may perceive an advantage at that time in objecting to mediation. The answer is to ensure all contracts with your Chinese partner companies include a term to the effect that both parties shall agree to embark on mediation before litigation or arbitration.

You can copy a suitable term and condition from our website at www.TheMediationRoom.com

Graham Ross
'See You Out of Court!'

[thomasw98]

Hi MC:

It is a rather broad question and I can only speak to the issue regarding China (where I have lived and worked for 16 years).

A good first step would be to visit one of the smaller wholesale markets. There you will see wide range of products to get an idea of what is available and to get a rough idea on pricing. If you come to Shanghai, your first stop should be a market called "Xiang Yang Market" located on Huai Hai Road. Your hotel front desk should easily be able to give you written directions for the taxi driver.

Xiang Yang is the classic "knock off" market where they sell a bunch of fake rolexes, gucci bags, etc. Obviously, these are not good export items unless you want to get arrested in the UK when you return home. But the market also has a range of non-knock-off products for you to look over. As is almost always the case in China, buyer beware on pricing! Sellers have not the slightest concern about charging you ten times the real price as long as you are willing (or dumb enough) to pay this higher price. So you need to bargain like crazy if you do not know the real cost of something. Even then, you can easily get ripped off as happens to many foreigners who think they get a good deal because they bargained the price down to 300 from the initial asking price of 700, whereas the real price should have been 50!

Short Negotiating Lesson=====

A good rule of thumb in calculating the cost of an item in China is as follows:

1. Take the retail price of a similar NON-branded or NON-famous brand product in the USA (I am not sure if this is valid for the UK, since I am American, but I think the chances are good).

2. Divide that number by 4

3. This should be roughly the factory selling price in China plus or minus 10%.

Here's an example: If a pair of men's shoes in the USA in a shoe discount store sells retail for US$39.99, then the factory cost from China is probably US$10. If you use Walmart as you retail price source, then divide by 3 to get the China factory selling price. Walmart promotion "on sale" retail prices should be divided by 2.

This only works for NON-branded USA pricing. Using a pair of Nike running shoes as an example: These branded shoes might retail for US$110 in the USA but the factory cost in China for a similar non-branded shoe would only be around US$9 or so.

Back to wholesale market advice==========

Now back to the wholesale markets in China: There is another HUGE wholesale market in a city called YiWu which is located 7 hours car drive from Shanghai. When I say "huge", I mean HUGE! This city is nearly filled with wholesale markets with probably 100,000 different sellers or more. The markets tend to be divided into sub-markets by type of product, so if you are looking for men's neckties for example, you would locate that sub-market and spend 3 hours walking around looking at neckties until your eyes glaze over (neckties cost US$2 each in bulk). Yiwu is the real BIG TIME of wholesale markets in China.

But one quick word of forewarning again: The sellers in these markets are 100% sharks with zero ethics, so be very careful and cautious and take everything step by step. Start small and gradually build up your confidence.

Good luck!

Thomas the American in China

[neon2000]

It is up to what line of business you have to put what sort of items you are going to import before asking help so they have ideas what to suggest to you. If you are going to put a jewelry business, then, you have the idea what to buy like sterling silver plus you can also add any accessories like beads, etc. to compliment your jewelry business. If you have sports shop store, you have the idea what to buy. Shoes, sportswear, sports equipment, etc. If on clothing, then you have it. For teens, baby dresses, men and women. Or if you wish you could buy, undergarments. Its up to you.

Just a word of advice, before going to enter any business importation, be sure you know the legal aspect for both sides, the China and UK. You need to know importation duties and other matters. ok?

[Magsite]

All a bit technical. Anyone know any good Chinese business forums (in English LOL)

Lisa

[asiawestclt]

I am currently living in China (Xiamen) Guandong and Hong Kong for over 11 year doing import and export business for almost 10 years. I am agree with above thomas and neon comments. it depend of what do you want to import since in China they are different area of products e.i in Xiamen are shoes, granit stones, in Gangzhou you will fine more on the cosmetics business, in Zhenzhen technical products. have a look on www.alibaba.com to find an idea about products you would like to purchase but as thomas said zero ethic in China so becarefull, me I dont trust anymore any Chinese companies by my experience so.

[thomasw98]

Originally Posted by lisa1979

All a bit technical. Anyone know any good Chinese business forums (in English LOL)

Lisa

Quick reply to lisa about china biz forums:

Try this one: http://forum.tdctrade.com/cgi-bin/fo...er=1&SUBMIT=Go

Good luck!

An American in China for 16 years and counting....

[Magsite]

Excellent, thanks

Lisa

[thomasw98]

Also some good advice and some user comments on the bottom at:

http://www.businessweek.com/smallbiz...104_466114.htm

[steven1008]

I come from Chinese and work for foreign trading company which is invested by englishman.
Everything is very good,I thinks. all depend on how to deal with the relationship between the agency and the maker.