Agent services in China, legal support in China, company registration in China and Hong Kong

Methods of gathering information about the manufacturer in China

Methods of gathering information about the manufacturer in China, visiting a partner, evaluation and analysis of manufacturing capabilities, technical evaluation of a manufacturer in China, how to establish long-term business relationship with the manufacturer

What are the better manufacturers to cooperate with in China is a rather difficult issue. Everyone who starts its’ activities in China wants to get more information about their potential partners, mostly manufacturers in China.

Correspondence and contacts obtained on the expo fairs do not give a complete picture of a Chinese company or the factory which is expected to accept an order for the production of a product.

At the exhibitions, many import-export companies present themselves as manufacturers in China, the owners of certain plants, but in fact, they are not, and eventually correspondence and telephone conversations instead of clarifying the situation, on the contrary, make it more complicated.

Even a visit to the plant manufacturer in China can sometimes be misleading – it frequently happens that the person who has introduced himself as an responsible employee of the enterprise, may only be an agent who arranged with the owner of the plant on the production that he would be placed here. Who loses in this case, perhaps , is it clear?

It’s important to emphasize that the majority of manufacturers in China can be divided into two groups: the ones working in the domestic Chinese market and the ones, who specialize on export. We will consider the latter group, which is more lucrative for foreign customers.

It should be noted that some producers in China are working on both markets at once, producing a unified products, such as pipes or fittings.

Usually, some idea about the equipment, technology, personnel, working conditions and so on appear after a visit to the Chinese manufacturing plant. The overall picture can become more complete with the showroom catalogs of manufacturers in China, information about customers of the enterprise and the registration documents.

So what can be seen and heard from the manufacturer in China? Completely different: industrial premises of the Chinese manufacturer might be, figuratively saying, a dilapidated barn, and  a modern, technically well-equipped facilities. The same applies to the equipment: from the out-dated machines to multithreaded production lines, purchased in Europe or made according to European standards.

However, there are distinctive manufacturing facilities, consisting only of finished goods warehouse: sub-orders are placed in the surrounding villages, where Chinese peasants collect components and parts of the order manually. At the same time, thousands of two-three-floured cottages lasting for many kilometers in the open field can also be found here. Each of which is a mini-factory, producing, for example, some fishing supplies. The variety of manufacturers in China is quite broad.

You can also hear completely different reaction from the manufacturer, starting from categorical refusal to cooperate and ending up with the honey-words and vows of eternal love and devotion. We can say that, as always, money decides everything: if the manufacturer in China is loaded with orders, he may simply not answer your emails and refuse in a personal meeting.

Conversely, you might be met  at the airport, placed in a brand new hotel on the account of the company, invited for lunch and dinner, presented gifts … It all depends on the interest of the manufacturer in your order or purchase of your finished product.

Incidentally, this reaction mainly does not depend on the quality of products, the proverb “every product has its customer” is truly about manufacturers in China. Sometimes it seems that  the goods of such poor quality simply can’t  be in demand, but the Chinese factory has regular customers from the Middle East who are willing to buy its products and place orders on a regular basis, that’s why everything must be checked carefully. Only in this way you would get high-quality products.

Methods of gathering information about the Chinese manufacturer, visit the partner, assessment and analysis of the manufacturing capabilities, technical evaluation of Chinese manufacturers, kinds of Chinese manufacturers

… Suppose you have found a suitable Chinese manufacturer who produces the necessary goods of required quality and at an affordable price. Do not flatter yourself and fall for first impression before you got the first batch of samples or finished products produced by the factory. Do not be so sure of the Chinese partner.

For instance, having already placed an order and received the confirmation from the Chinese manufacturer that the bulk would be produced on time and of decent quality, you might be surprised that your product has been sold to other customers, and shipment has been delayed for 2 weeks – this kind of practice is normal in China.

Particularly disappointing is when Russian clients are put at the last place in the priority where the preference is given to European or American partners. Clients from Russia and CIS countries should be blamed themselves: irregular payments for goods, incorrect placement of orders and so on – all of this often prevents mutually beneficial cooperation with Chinese manufacturers.

Even after 2-3 purchases (orders), you might get low-quality goods, as a Chinese manufacturer feeling the profit may reduce attention to you and your order, not appreciating you as a customer. Moreover, he starts to dictate his own conditions, deliberately reducing product’s cost and quality, buying cheaper and suitable materials or poor-quality components.

There are a lot of similar life examples. Of course, not all Chinese manufacturers are the same and not all of them are cunning scammers, but in terms of their evaluation it would be wiser to proceed from the pessimistic scenario of development of relations with them.

Best of all, if the production or purchase of products from the Chinese manufacturer is controlled by your agent – this will help to avoid many unpleasant situations that may arise during the work.

Our company at an early stage may help to analyze the activities of Chinese manufacturers, give our recommendations and build effective relationships and cooperation with the companies in China.

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