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Why do we source products from China?

Discover Liz Group insights articles on the import from China.

Why do we source products from China

Table of Contents

Source products from China Introduction:

In recent years, China has emerged as a global manufacturing powerhouse, offering businesses around the world access to a vast network of suppliers and manufacturers. From low production costs to advanced manufacturing technologies, sourcing in China can provide businesses with a range of benefits. In this article, we’ll explore the advantages of sourcing in China and provide tips for successful procurement from this dynamic market. Whether you’re a small business looking to reduce costs or a large corporation seeking to diversify your supply chain, sourcing in China can offer significant advantages and help you stay competitive in today’s global marketplace.

Benefit of source products from China

1. Cost savings:

China is known for its low labor costs and production costs, which can result in significant cost savings for businesses.

2. Large supplier base:

China has a vast network of suppliers and manufacturers, providing businesses with a wide range of options for sourcing products.

3. High production capacity:

China has a high production capacity, which means that businesses can source large quantities of products quickly and efficiently.

4. Access to advanced technology:

China has made significant investments in technology and innovation, which means that businesses can access advanced manufacturing technologies and techniques.

Chinese suppliers are often willing to work with businesses to customize products or make small production runs, providing businesses with greater flexibility in their sourcing strategies.(Unlocking Success: The Advantage of Flexible Production Options for Importing from China

6. Quality products:

While there have been concerns about quality control in China, many Chinese suppliers have implemented strict quality control measures to ensure that their products meet international standards.

7. Strong infrastructure

China’s strong infrastructure and logistics network makes it easier for businesses to transport goods and materials, reducing lead times and improving overall efficiency. Moreover, China’s status as a global manufacturing hub means that businesses can benefit from economies of scale and access to a wide range of specialized suppliers and resources.

8. Investment policy

By sourcing in China, businesses can also benefit from the country’s strong government support for foreign investment and trade, as well as its favorable tax policies and incentives for businesses. This can help businesses reduce their overall operating costs and improve their bottom line.

What are the channels for sourcing products from China?

When sourcing products from China, there are several channels you can explore. Here are some common options:

1. Online B2B platforms:

Websites like Alibaba, Global Sources, and Made-in-China.com connect buyers with a wide range of suppliers in China. These platforms allow you to search for products, compare prices, and communicate directly with suppliers.(Unlocking Sourcing Success: Navigating China Import B2B Platforms)

2. Trade shows and exhibitions:

Attending trade shows and exhibitions in China provides an opportunity to meet suppliers face-to-face, see product samples, and establish direct contacts. Events like the Canton Fair and the Global Sources Exhibitions are popular for sourcing products.

Hiring a sourcing agent or working with a sourcing company can be beneficial, especially if you’re new to importing from China. These professionals have local expertise, and supplier networks, and can assist with product selection, negotiation, quality control, and logistics.

4. Factory visits:

If feasible, visiting factories in China allows you to assess their capabilities, production processes, and quality control measures firsthand. It also helps in building relationships with suppliers and gaining a better understanding of their operations.

5. Referrals and networking:

Seek recommendations from trusted business partners, industry associations, or other importers who have experience sourcing products from China. Networking events and online communities can also provide valuable insights and connections.

Consider your specific product requirements, budget, and preferred level of involvement when choosing the most suitable sourcing channel. It’s often beneficial to combine multiple channels to maximize your options and find the best suppliers for your needs.

Source products from China Conclusion:

Overall, sourcing in China can provide businesses with a range of benefits, from cost savings to access to advanced technology and flexible production options.

Learn more

Frequently Asked Questions

Despite the development of online platforms such as Alibaba, Global Sources, or Made in China, finding a reliable supplier in China is not a simple task. Indeed, you have to take into consideration the distance, the language barrier, and the different commercial relationships.

This is where your LIZ GROUP sourcing agent comes in. We offer a SOURCING service in which we identify potential suppliers and propose a complete sourcing solution in China.

There are several ways to find a supplier in China:
1. On the Internet with Alibaba, Made In China, Global Sources
2. In trade shows such as the Canton Fair
3. With the help of a sourcing agent who is an expert in finding Chinese suppliers

Sourcing in China (finding a supplier in China) alone is a risk that buyers sometimes take thinking they can manage the whole relationship with their Chinese supplier and save money. However, there are still many obstacles in the purchasing process in China:
1. Misunderstandings due to language or culture
2. Uncertainty about the reliability of the manufacturer
3. Considerable loss of time due to lack of knowledge and visibility

Many buyers end up using a sourcing agent to support them and manage the process for them. The sourcing agent represents your eyes in China since we can visit the factory and we speak the supplier’s language.

LIZ GROUP proceeds in 5 phases to find a supplier in China:
1. Analysis and understanding of your needs
2. Prospection of suppliers in China
3. Study and analysis of industrial offers
4. Evaluation of Chinese companies
5. Estimation of transportation costs
Our relationship with the manufacturers in the market allows us to limit the risks at each stage of your purchase project, from its introduction to its conclusion.

LIZ GROUP has listed the top 5 most important questions to ask suppliers in China.
1. Are you a manufacturer or a trading company (an intermediary)?
2. What are your production capabilities and product offerings?
3. What is your MOQ (Minimum Order Quantity)?
4. What is your delivery time?
5. What are the payment terms?
These questions will allow you to have a global idea about your Chinese supplier but are not sufficient to consider this supplier as reliable. You can call upon an agency specialized in sourcing in China like LIZ GROUP. We offer a sourcing study service in which we identify and validate suppliers in China, you get a complete sourcing report that allows you to place an order directly.

The 5 main steps to find a best supplier in China are:
1. Write a precise product specification
2. Find Chinese suppliers on the internet, via import-export trade shows, or via a sourcing agency in China like LIZ GROUP.
3. Launch a call for tender
4. Analyze the feedback from Chinese suppliers and compare them to select the most suitable offer for your needs
5. Validate the supplier in China (make sure the Chinese supplier is reliable) by going to the factory or by having a factory audit done by a sourcing agency like LIZ GROUP.

1. Finding different products becomes difficult and frustrating due to the existence of numerous suppliers.

2. Communication inefficiency arises as suppliers frequently fail to respond promptly or completely.

3. The prices tend to be high since the majority of suppliers are middlemen or trading companies.

4. There is no assurance of product quality. Certain suppliers offer substandard items, leading to disappointment while lacking the possibility of compensation.

5. Suppliers are reluctant to assist with goods from other manufacturers.

The process for customs clearance in China involves submitting the necessary documentation, such as commercial invoices, packing lists, and customs declarations, to the customs authorities. Liz Group can assist you with the customs clearance process.

1. We are not just your eyes and ears in China, but also your heart.
2. We are not just a sourcing agent, but also part of your team and family.
3. We enact a scientifically transparent business model to line our interests with your interests.
4.No need to rent space, register a company or hire staff in China but with us, you can have almost all of them.

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