For the new millennium, international trade has been considered as a hot industry. However this is not a new venture since trading has been in existence since the beginning of time. Consider the trading of shells and salt to faraway tribes during the prehistoric years. Then there were the trading caravans during the biblical age that brought spices and silks from one tribe to the other. Marco Polo himself was doing trade too. The existence of trade came to be because of the excess supply of one group which as it happens is the demand of the other. With the technology advancement, trading becomes a more rewarding venture that is equated to bigger profits and business success.
Reasons and factors why importation existed
Importation came to be as a big venture in most countries around the world due to the following basic reasons:
- Availability: Even countries that are self-sustaining still needs products that are not grown in their own backyard. Take for example in the Middle East countries, they have more supply of oil but still lacks the manufacturing of clothes and basic products which are considered as a primary need for their existence.
- Importance: Even though you may have similar products within your area, still there are others who are producing better, finer, tastier, healthier, grander, more efficient products compared to the one that you have; making importation a necessity.
- Cost: There are countries that produce the same quality products as those made locally but if it is cheaper to import, then that will be a better option.
The most important factors in importation are the resources and the technology of another country which may not be available in your own country.
What is expected when importing products from China?
There are many businesses around the world particularly in Australia that have considered importation in order to remain competitive, thus they must look for other sources of products beyond the seas and towards the shore of China. But to venture into the importation business particularly in China requires the company’s sufficient preparedness in all areas relative to the task. Sourcing is the first and the most difficult undertaking.
Many companies that went on direct dealings with suppliers from China discovered many drawbacks. Projected savings, expected profits and even original investments were lost as a result. This mainly shows that in order to be successful in doing import from China, it is best to gain the right tools to conduct business following the right route, understanding the language, building a relationship as well as developing trust.
Areas considered when importing products from China
In importing products from China here are the most basic requirements that you must validate:
Supplier – the authenticity of the supplier as a direct manufacturer of the product you require. Check legitimacy through permits, certificates from local government agencies
Capabilities – the quantity and quality of the products that they are capable of producing. Quantity and Quality can be based on actual production review, Plant Standard Operating Procedures related to quality and certifications from International organizations for standardization (ISO)
Flexibility – are they capable of supplying your needs in case of higher market demands?
Trustworthiness – can they comply with your requirement and deliver the goods as stipulated in the contract.
Shipping of products – can the manufacturer provide the ideal shipment method for the product that is both reliable and cost effective. Can they protect the product from damage during handling and shipment?
Importing is not basically for adventurers alone who have the skills and wits to turn products into cash, rather it is for those who have the determination to succeed and the willingness to learn and experiment. There are many videos, books, articles and even companies that can supply information, data and recommendations to help in this endeavor. Remember success can be achieved with great planning, greater effort and greatest belief.