Advantages And Disadvantages Of Importing Products From China: Critical Considerations
Whenever we see the label "Made in China" we are reminded that China is a place where goods are manufactured for a fraction of the US cost and distributed to over a billion potential buyers. Corporate giants such as Wal-Mart are investing heavily in China. Thousands of small to medium sized companies are getting in on the action as well. In fact, it can be said that 2000 was the decade that got thousands of entrepreneurs to investigate how to import goods from China.
China has enjoyed an average 9.5% yearly growth within the past 10 years, and its Gross Domestic Product (GDP) increased from $ 300B in 1985 to $ 1,600B in 2004, higher than the state of California. In the meantime, the foreign trade volume has increased twelve-fold! Foreign direct investment has reached $ 550B during the same period. China's blistering modernization from 1990-2010 made importing goods from China highly attractive to retailers worldwide.
The country's first production census discovered that from 2004 to 2007, the GDP growth rate was of 10% annually. In 2007, the formally recorded GDP growth rate was 11.4 %. In 2008, the global economic crisis began to reduce China's growth rate. To settle the crisis, the government decided to pour Rmb (China currency) 4 trillion into the economy in the form of an economic stimulus program consisting primarily of investments in fixed infrastructure and human capital.
Although in early September 2009 mainland China was engaged in new trade dispute with the US over the imposition of an emergency duty on Chinese tires, a full-blown trade war is almost impossible as this is not in the best interest of both countries. Mainland China is the largest creditor of the US, and the US is the Mainland's second largest export market after the European Union. A trade war between two of the world's leading economies will also be harmful to the global recovery just underway. China import export is here to stay, for now.
Northern Asia in general (Japan, South Korea, Taiwan, Vietnam, and Mainland China) is a fantastic place for manufacturing products (Vietnam is like China fifteen years ago).
The clear value of Mainland China today lies in the low production, labor and better quality control practices, making it by far the most attractive place of the region.
Moreover, bear in mind that Chinese companies will provide you with what you demand, even if it is not within their production standards. They possess a great ability to create a very unique design by blending several existing concepts you might have submitted to them. While Westerners do not necessarily like (or are even able to) adjusting their production standards to special customer requirements, a Chinese company would consider this a standard feature of their service.
Standardization such as ISO or 6-Sigma is not very popular in China, but is implemented by the higher end vendors. However, regardless of your order volume, quality control with China is a MUST. You need to receive what you order and in the exact way you ordered it. From unsophisticated to sophisticated products you have to monitor quality control with Chinese vendors. Implement multiple QC check points during different phases of production. An importer's worst nightmare is receiving a full container load of merchandise that is defective due to a wrong screw size, for example. If you still try to sell them, or sell goods that you don't know was designed wrong and later falls apart, this means massive merchandise returns, angry customers, and an accounting/billing department nightmare. As the Supervisor of your own company, you are responsible for ensuring that your products satisfactorily meet desired specifications.
Importing Goods From China - Things To Consider For Aspiring Import Export Businessperson
Perhaps you've wandered into a luggage store in a local shopping mall and wondered where these people get their stuff. Or, you shop on-line for a portable air conditioner and see many sites with impressive product lines, and you think "how do they acquire these products, and how much money are these people making?"
How Computer Support Experts Can Help You And Your Company
If you frequently work with computers, you're probably no stranger to computer problems. Computer problems, which often come unexpectedly, can slow down the work - sometimes it can put your work off for a few hours. Computer problems can be such a disadvantage, especially if you don't have a computer support expert.
Computer Consulting: Enhancing Your Business' Overall Performance
So what exactly is Computer consulting? Well first off, it is also known as IT consulting or Information technology consulting, computing consultancy, and business and technology services. Computer consulting is a field involving in giving businesses advice
How Internet Marketing Outsourcing Operates
If you have a business you may have considered what internet marketing outsourcing could do for you as there are probably a number of day to day functions that could be outsourced to great advantage right this minute.
Internet Outsourcing For Small & Medium Enterprises Is Very Important So Read Cautiously
The trade process of outsourcing involves a lot of things including outsourcing internet marketing which has become more and more important for businesses. It involves every aspect of your company in order to let your company operate smoothly and efficiently.
Exactly What Network Services Can Do For Your Company
Well not to worry, with the help of network services you can now reach your target audience, manage your business meetings and affairs with ease.
Computer Networking: Exactly What You Should Know
Computer networking, more commonly known as datacom or data communication is the practice of linking two or more computer systems together to exchange data. Computer networking is considered a branch of computer science, information technology, telecommunications and/or computer engineering since it heavily depends on the theory and practical application of these mentioned fields.