OPT from China with detailed instructions and links for Starting a business

Chapter 1. Getting some are beginning to search for products from China.

Let's start with the search techniques of Chinese goods from the office or at home with the so-called "desk research».

The most radical people start looking for Chinese manufacturers and wholesale from China directly into Google or Yandex in Russian. Perhaps one of these people looking for Russian distributors of goods from China. And someone is trying to find Chinese suppliers such an extravagant way.

Quote: If you sit in the office of a small Chinese company, you can see search methods by the Chinese companies, their component suppliers or marketing materials. For example, you need to find a new printing press, suppliers and etc. Manager or assistant recruited in a search engine is what you need and begin to ring. But they are not looking at Yandex and Google, the existence of which they can not even guess, and in their national search engines, such as www.baidu.com.

The basic way to search for Chinese suppliers at the moment are: b2b-portals, exhibitions and markets (in Guangzhou, Beijing, Shanghai, etc.), advice, friends, competitor analysis. Exhibitions, markets, recommendations, and friends - you're doing it yourself. I especially try to develop a theme b2b-portals and recommend their services to verify the Chinese suppliers "in place».

Conclusion of Chapter 1:

Pointless to look for in a Russian-language search engines Wholesale from China, Chinese suppliers of goods from China. You will get a 99% chance to sites resellers polurabotayuschih strange product catalogs or websites of people working on a "wait, I'm naroyu for you the Old».

Chapter 2. Alibaba - Alibaba.com or "Open Sesame!».

Certainly the early years (2002-2005) the existence of this b2b-portal can be considered well-being for years on alibaba.com. Were real wholesale Chinese manufacturers and sellers, there was little scam. Chinese scammers were just beginning to explore the Internet. Now, as in the ancient Arabian tale, this (and other) trading platform appeared robbers who "want to take away money Alibaba»

Fraudulent business in Chinese on b2b sites
It's very simple. Chinese fraudulent business is based on the fact that a trip to China are not cheap (especially in the south of China), and many small and medium-sized companies and entrepreneurs prefer not to go personally to the Chinese manufacturer or supplier, and buy goods wholesale from China remotely.

The scheme is as follows: "Lovers freebies" from other countries motivate low prices. Client asks samples. Scammers buy retail quality products (they know where to buy them) and expelled the victim. Buyer holds a "sample" of China, feels the it tries to break in, etc. etc. and concludes that the goods quality. The client is glad to have found a quality Chinese manufacturer, not the seller "Chinese junk" that has bothered in the nineties. Customer victim sends money for wholesale party of Chinese goods to people who sent him samples. The client is not aware that the money goes to nowhere, and no one was going to send him a commodity, as there is no explanation and no production. And when receiving money - no longer and office phones and that "the Chinese manufacturer / supplier».

In addition to Alibaba, there are other international b2b marketplaces, such Made-in-China.com and GlobalSources.com.

Chapter Summary 2:

1. The first estimations by producers from China can be done through b2b portals in English.
2. You must be able to properly formulate search queries in English.

Chapter 3. What are the "Chinese manufacturers».

I share the Chinese wholesale suppliers in the following groups:

1. Chinese manufacturer - the organization that owns the means of production (machinery, equipment). The equipment is located on owned or leased production space. Chinese manufacturer can produce the goods of its own design and brand or do OEM-products for customers. In this case OEM-product is proprietary Chinese manufacturer, or OEM-product drawings (or electronic files, programs for machine tools or other raw materials) from the customer. Ie customer - developer of Chinese goods, which then write «Made in China», although the goods developed in another country. Sometimes the opposite situation, the country-product developer becomes the "manufacturer." And in the future, goods made in China and shipped it to the developer to Germany, it is purely "German." In this case, usually written on the package: "Traditionally, the high German quality».

2. China manufactory - a kind of Chinese manufacturer. Manufactory is characterized by manual labor, at least automation of the production process. Raw materials and components are supplied ready-other Chinese suppliers. The task factory - to collect all the hands together, or produce from raw hands some object, such as a souvenir. Manufactory often to assemble furniture, simple tools, devices, production of souvenirs. Manufactory, can be placed anywhere - on the first floor of residential buildings in the barracks in rural areas, etc. A key feature of manufacture - low price of the finished product, manufactured in manual labor. You'll be disappointed if you visit at a "production" personally. The Chinese are not very whimsical. The main disadvantage of manufacture - limited the maximum volume of production. That is, if your business popret uphill, the manufacture can not cope with your volumes. Or manufacture can get another big customer, and you will not be able to produce goods at the right volume. You will have to seek additional manufactory, and this is again neponyatki with quality and working conditions.

3. Chinese manufacturer with dopassortimentom - a kind of Chinese manufacturer. In this case, a Chinese manufacturer makes their own main product range, as well as to the main range offers an additional range of other Chinese manufacturer. This often Chinese manufacturer does not mean that it does not produce data Marking of goods, and produces the entire range of Chinese goods at his own.

4. Chinese developer - is a small company, especially in IT, which can develop a device or group of devices similar in functionality. However, the company does not have a property and does not own the means of production (on loan or lease) and leased office (possibly with furniture), which houses the development department and sales department. The device, in particular if its foundation - the printed circuit board, ordered from a Chinese manufacturer. For example, on the "contract manufacturing of printed circuit boards." Next to the "assembly production", which may belong to other Chinese manufacturer, there is equipment products, packaging in retail packaging (retailbox / giftbox) and shipping container (gofratara). Chip Chinese developer - it offers the customer the finished product, in this case he does not own the means of production.

5. Chinese major wholesaler - Wholesale trade organization offering from China. Chinese wholesaler can sell small wholesale goods other Chinese intermediary organization.

6. Chinese small wholesalers - Trade Organization, which offers wholesale from China, and mostly does not work directly with Chinese manufacturers.

7. "The Chinese manufacturer", aka "Chinese fraudster" - when viewed from a distance, for example, from another country, it is very similar to the Chinese manufacturer or Chinese wholesalers. Judging by the fact that the activity is not dying, it seems, still there are people who want to make their first bumps when dealing with foreign trade. In particular when working with Chinese manufacturers. The experience is really worth the money. And sometimes experience are expensive.

Now, when I finished writing this classifier and reread it, I see that turned out even with the prefix "Chinese", but almost classical classifier commercial companies involved in the product distribution chain.

The main innovation of the classifier my - I'm trying to identify a group such as "Chinese developer." From the point of view of classical economic view, apparently, mostly Karl Marx, a sign of possessing or not possessing the means of production makes it possible to separate these Chinese companies in different groups. It annoys me when Lammer talk on the forums (in my market) "manufacturer, producer, manufacturer, factory, factory". And these "producers", "plants" and "plant" is only rented an office with rented furniture and their 5-10 computers and a small staff of salaried employees. And no one machine.

The site Alibaba and the Forty Thieves (alibaba.com) data group of Chinese suppliers turn into one group "Chinese producer". Few buyers consciously wants to work with a mediator. Everyone wants to work "directly from the Chinese manufacturer." That has large and small Chinese wholesalers, as well as Chinese developers impersonate "the Chinese manufacturer».

Chapter Summary 3:

1. Not all Chinese suppliers - Chinese manufacturers. Trading companies more than Chinese manufacturers. Still there is the Chinese software companies.
2. It is important to understand: "What you are birds of a feather, or more precisely, what is the size of your business?" Is it possible you buy from a Chinese manufacturer, or work with large wholesalers - your option. With textiles, of course, small and medium businesses can work directly, without wholesalers.
3. Of all the groups of Chinese supplier you can actually work with all, except for the group of swindlers.
4. Small Chinese wholesalers (the third link in the chain of goods movement from the manufacturer) - the least profitable option from Chinese suppliers.

P.S. And yet there are Chinese production owned by foreign companies.

Chapter 4. Chinese wholesalers are not that bad guys - they work favorably.

All want or dream to work with Chinese manufacturers directly. But since there are Chinese wholesalers, so that someone so necessary.

I'll tell you a recent example of a small business. In summer 2010, I flew from Ekaterinburg to Beijing. Airplane talked to one guy. Let's call him Sergei. Sergei turned from the regional center, adjacent to Yekaterinburg. Sergey has five shoe stores in the regional center and the region. Shops consume a stable volume of goods. Sergey 7 years in the market of shoes and for 4 years he traveled to Beijing. In Beijing, he works with 3 shoe wholesale Chinese companies. When Sergei arrives in Beijing, he chooses each of the partner of the Chinese women's boots (copies of the latest European models) for the sum of 2 million rubles. But money gives then when merchandise is sold out. Here is a case where credibility becomes a commodity loan of 6 million. Rubles. And just try a Russian bank to take credit for the same amount without collateral value of their property more ...

There are other examples. They are not the essence. And the fact that the mediators for their delta profits can provide the best commodity loans to their customers. A Chinese manufacturer prefers scheme of 30% to 70%. 30% pay - start production, you pay the remaining 70% of the party wholesale from China - shipped finished product. The eternal question of any business - whose money you develop your business. Better - if other people.

Chapter 5. The quality of Chinese goods.

Subject quality requires a lot of attention and it did not disclose this brief article. Certificates ISO, RoHS, CE does not say anything about the product. Goods from China may be poor, toxic and contain harmful substances that are prohibited by the last two mentioned certificates.

I have identified the following causes of the problems with the quality of some Chinese goods:

1. Inconsistency materials

Quote: Or suppose bearings. If an improper type of steel (steel not alloyed), inadequate accuracy class, such a bearing is short, although the size corresponds to his Russian or Western counterpart. But there are bearings in many consumer goods (bicycles, roller skates, tools, etc.) and industrial goods. Such a bearing quickly takes off. All product fails and can not be used to replace the bearing.

Another example. About footwear. I recently flew from Moscow to Guangzhou. Conversation with a girl on the plane. Let's say her name is Natasha. Natasha - Commercial Director of one of Moscow's wholesale footwear companies. Natasha is necessary to spend 2-3 weeks in Guangzhou - control the factory, with which they work. This is the tenth trip to China Natasha. According to Natasha, she has to control everything, including precision manufacturing shoe pads, in the manufacture of it with the European model, threads, leather, etc. Natasha says it used to be better and Chinese partners take more responsibility for the quality, but after a few years of work have become lazy and need to constantly monitor the production - from which it is made, as is done, etc. But really, if at least one of the components - say a thread or glue are unsuitable as the sole material, leather - the best quality and expensive, such shoes or boots still fall apart quickly. Will be complaints from customers. Loss wholesalers. I'd be afraid without quality control remotely buy something from the pictures in Alibabe.com.

In general, materials and merchandising ... And this is a large separate topic.

2. Chinese products are not tested in the desired environment of use
The climate of China and Russia is different. Equipment may not work when cold, does not work as intended, the details may be subject to corrosion of steel. Chinese developers that could not or would not provide. In them there is no such conditions for product testing.
The average weight of one person from China and Russia are also different. Therefore, for example, two-wheeled or four-wheeled vehicles with a metal frame can break under the weight of the Russians, although the Chinese over the years can travel on such vehicles, and the frame does not break.

3. Hardware & Software flaws

If we're talking about computer devices, then we can talk about the shortcomings of the PCB or omissions software - drivers and application software.

Legally, the supply agreement can be laid on quality wholesale items from China. But, there are many nuances. Starting with how to control it is the quality and how to measure it. Ending with the country in which you will deal with conflicts in the courts, in the event of a dispute on the quality and how you will ensure the execution of court decisions.

4. Bad approach to production.

In early December 2010, I met in Hong Kong at the peak of "Victoria" with two girls from Russia. They were "sewers". Then a little corresponded. Once in the correspondence I asked my questions.

Quote: Please tell us what "sewers" are engaged at work in China. I "shoemaker" already communicated. And it appears that they have to control the making of shoes with the European model, which is copied, control thread, leather, sole, etc. And you have a "garment" that? Why not get remotely buy garments in China? Why do I have to sit near the factories in China? What are the specifics? What is the whole point?

"Sewers" have to control manufacturing of clothing with the European model, choose fabrics, accessories, sewing, finishing. Buy does not work, because we have our own brand, its own specifics, in every season its color and so on. Everything is the same as that of the "shoemaker". And in China have to be constantly because many factories, and the Chinese are constantly chudyat: it is shorter, longer, not color, not in time. We've got a month for the year goes.


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