November 29, 2022
Importing -
Why import from China? The benefits and drawbacks that might surprise you | OneLink Holdings
When it comes to importing goods, China is often the first place that comes to mind. But what are the real benefits and drawbacks of importing from China? Check out this article to find out!
In today’s global economy, it’s more important than ever to source goods and materials from the country that can provide the best quality at the most competitive price. For many businesses, that country is China. Here are some of the benefits and some of the drawbacks to consider when importing from China that might surprise you.
Quality Control
When it comes to quality control, Chinese manufacturers have become second to none. Over the many years that China has become the worlds manufacturer they have learnt many lessons in how to improve the quality of their products by implementing stringent quality control measures that are built into every stage of the supply chain, from raw materials sourcing to final inspection before shipment. This attention to detail means that you can be confident you’re receiving products that meet your high standards. While quality of Chinese manufacturing is usually of a high standard, routine checks of factory quality is beneficial.
It is important you receive samples of your products in initial stages to ensure you are working with the best factory which is suited to the quality of product your brand and company require.
Competitive Pricing
China has a huge population and a well-developed infrastructure suited to manufacturing, which combine to give Chinese manufacturers a significant cost advantage over their competitors in other countries. These cost advantages transfer to the business importing the products, with significant profit margins unlikely to be achieved from manufacturing in the importing country. This cost advantage is passed on to customers in the form of lower prices, making importing from China an attractive option for businesses on a tight budget.
China has been purchasing global raw materials for their manufacturing requirements for decades which means they now control the majority of the worlds raw material exports. By having a monopoly on global raw materials also provides China with competitive pricing.
Quick Lead Times
In addition to being cost-effective, Chinese manufacturers also have a reputation for being able to turn around orders quickly—sometimes in as little as two weeks. This is crucial for businesses that need to get their products to market quickly in order to take advantage of temporary trends or seasonal demand spikes. China manufacturers have the ability to produce high volume demands without increased monetary commitment, this is in part to the high level of labour built up over the years.
Large Quantity Orders
Thanks to some of the points mentioned above, China is able to fulfill large quantity orders better than any other country. Their ability to import raw materials, efficiently transport those materials to factories through their world class transport and infrastructure channels, their ability to mobilize trained and experienced staff and the manufacturing capabilities of some of the biggest factories in the world make China a key supply partner when needing to fulfill large quantity orders. As a large business needing to produce large quantities of products in short time frames you cannot look past China.
While there are plenty of benefits of importing from China, it is important to consider some of the negatives that could occur. Businesses should be well informed of potential risks in dealing with the Chinese manufacturing industry before beginning engaging in manufacturing.
Finding a factory
As China accounts for 28.7% global manufacturing output there are countless factories in China, having said that not all factories will be able to manufacture your product to the price or quality you require. Those that may be suited to your requirements may also have too many existing customers to provide you with the quality service you deserve.
The process of finding a factory that can manufacture your product can be time-consuming without the prior research into Chinese manufacturing companies. Developing relationships with these factories are critical as they will have hundreds of potential or existing clients they manage, meaning a good relationship will likely make them appreciate your business and offer better customer service.
Language Difficulties
The language barrier in China can prove difficult and costly for businesses that have only English-speaking employees. The official language in China is Mandarin, with English only having a 1% conversational level in Mainland China. With the low rate of English proficiency, the best way to avoid any errors in conversation is to hire a translator. While more costly for the business, it can save valuable money and time spent lost in conversation with your Chinese counterparts.
Intellectual Property (IP) Breaches
Some factories in China will steal your businesses’ IP and may copy or modify slightly your design to then market and compete with you. To avoid this happening, it’s important to register a trademark for your product with the Chinese Trademark Office in the Chinese language (not just international). Furthermore you should ensure you are only working with a reputable manufacturer and have all contractual agreements water tight.
Shipping
Shipping your products from China can be costly and sometime come with long lead times. Freight from China can be shipped via Air or Sea Freight, with sea freight being the most cost friendly option. The downside of sea freight is the long lead times, with shipments taking anywhere from 14 days to 35 days. Businesses will also need to organise a freight forwarder to pack or consolidate containers on their behalf, for the shipment to be loaded onto the ship and organise all the documentation necessary for import. This process can be done by the business without a freight forwarder however the significant time and knowledge needed to complete this process correctly significantly outweighs the costs associated with hiring a freight forwarding company.
As you can see, there are many reasons why importing from China makes good business sense. While there are several benefits to importing from China, there are some drawbacks that can be eliminated if businesses are well informed. If you’re looking for high-quality goods at competitive prices, with quick lead times, China should be your go-to sourcing destination.
OneLink Holdings has extensive experience with Chinese manufacturing companies. Allow us to do all the hard work for you, with our team of experts who can source, manufacture and ship your products straight to your door, hassle-free. We are passionate about quality manufacturing, ensuring your getting the best quality products for the best price.
Written By
One Link Holding team
With our experience it puts us in a very unique position in being able to take your business from idea to reality, or if you’re part of the way there we can help with a number of individual areas in your business.
