On the surface, China Sourcing sounds risky. Working half way around the world, with a completely different culture and system, with  a very difficult language, sets off flags in many a CEOs mind. But we all know that if you are stagnant and not expanding you are at risk in today’sbusiness environment. We also know that China in not only the quality manufacturer to the world, but now the second largest market. So where is China in your business plan? I said it before; China is either a place to cut your manufacturing or distribution cost, an emerging market or a direct competitor. Sometimes all three.
Chinese Symbols meaning "Risk".
The China Sourcing factor:
So if you are not factoring China Sourcing in your business plan, there is a good chance that you are putting your company at risk by playing it safe. China Sourcing companies like Avela Corporation can help you develop your China strategy, but regardless of how you approach China, you need help. Some see risk as a four letter word but, I equate risk with positive outcomes like opportunity, stability and growth. And the safe way to manage risk is through your business plan.
China Sourcing missteps:
Many companies realize that they need to be in China and spend a lot capital making missteps along the way. I hear too many stories of someone who “knows a guy” in China who can help me with my China Sourcing. These stories always start off well, with some success. But too may times end badly. Or countless stories of developing internet relationships that result in bad outcomes. Business in China is about finding the right fit and building a relationship. And knowing a guy or working through the internet is how I define risky business.
My over all point is that you need to include China in your business plans, and when you are ready to act, get professional help. Experts hire consultants, athletes have coaches and seasoned travelers hire guides. So do the safe thing and take a risk. And if you are considering China Sourcing in your business planning, manage the risk by getting help. Contact Gary at Avela for your China Sourcing business strategy.
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{ 76 comments… read them below or add one }
Hi Gary,
This is a great article about business in China. I had never realized that they had such a large market. I enjoyed reading this.
Cheers,
Shanae
it is clear, businesses will need to be involved in one of the largest markets in the world but it is quite scary. Having a knowledgeable person or company lead the way will cut down on the risk of expanding into this market and may even increase its benefits. Thanks, Sybil
Hi Gary, Â I agree, it’s better to consult with a professional, to minimize the risk. Â ”the guy you know” doesn’t necessarily know what he’s doing. Â regards from Julieanne
Hi Gary, Â I agree, it’s better to consult with a professional, to minimize the risk. Â ”the guy you know” doesn’t necessarily know what he’s doing. Â regards from Julieanne
Hi Gary,
I really ‘get’ that China needs to be factored into everyone’s business plan. Our world only continues to shrink or ‘flatten’ if you will. While I am not yet sourcing anything from China, I will definitely seek your council when I’m ready to do so. Thanks for your words of wisdom.
Thanks for this post and your great website. I’ve already learned much about a topic I knew little about. But there is so much talk in the business sector about China, obviously, that I think it’s important for all of us to know more than we do. Now, when I’m ready to bring my own products to manufacturing, I know where to turn :) Thanks again.
Yiva,
Thanks for the comment. If you have any questions about China just let me know. Happy to help.
Thanks for this Gary. I’ve always wondered how people get people from China. It is kind of intimidating but everyone knows China is the place to go for manufacturing stuff. I have a friend that did some searching years back and took her a LOOOONG time to find one to manufacture her watches. I heard the people from China also qualify you as a client before they deal with you.
JC, Good observation. The Chinese do qualify you as best they can before accepting your business. They have their own legendary stories of being riped off by the west and need to mitigate their risks as well.
Hi Gary!
I like the new look! It looks great. Are your sourcing for product only or services as well. I wonder where if at all, childbirth education would fit in.. curious to know.! Congrats on being in the top 10 at TSA!
Lesly,
I asked about childbirth education in China after reading some of your information. My Shanghai VP of operations Nancy in Shanghai was pregnant at the time and she kind of looked puzzled about the conversation. “I think with a billion five people in China, we know how to have babies.” I got the impression that China has traditions and culture pertaining to child birth that are difficult to penetrate. Nancy is fighting the tradition that women should stay in bed for the last month of the pregnancy and stay in bed for a month after the birth. It has to do with a peaceful birth and rest for the baby and mother. Nancy, bucking tradition, worked up to the final week of her pregnancy. She was at work against family wishes last Monday and had her baby on Wednesday. Anyway, my point is that it would be an up hill battle, but things are changing in China at an incredible pace.
Well, I must say…..I am rather ignorant on the subject you speak of. But I do appreciate your post and trying to get the word out about China.
All the best to you!
Lynn,
I was too 11 years ago. But it has been a rewarding experience. I love the people and the culture.
How China sourcing may open doors for all of us.
Irene,
It has for me and my customers as well.
Hi Gary, Thank you so much for sharing your post and knowledge about sourcing in and from China. Growing up on an Island with a large community of Chinese people, and 20 other cultures, I have learned at a very early age, that the Chinese culture are great developers and one of the best business Networking communities. They are helpful and a hardworking culture.
Social Networking, and building relationships will give each of us the opportunity to learn how we all can work together for great abundance and success.
I belief Gary, that by challenging ourselves, we will overcome the negative input we have lived so many years. It is all about widening our horizons, and learn about the qualities of other cultures. Stepping into the unknown, gives us a opportunity to overcome!
Thank you again, for sharing your experiences and expertise, and opening many doors.
Enjoy Your Road To Success!
Irene
Hi Gary! The future of our business relationship with China definitely looks bright and holds many possibilities. It really is the right time to be planning our future business connections and considering strategies that will best suit us and our Asian partners. I don’t yet know what line my relationship with them will look like, as it is only beginning with learning their language, however, I sense the possibilities will be endless. Thanks for sharing this valuable piece of knowledge.
Loren,
Thanks for the comment. How interesting that you are learning Manderin. If you have any questions about China, please ask. We are happy to help.
I am glad I visited your blog Gary. It is great to have a reliable source to trust. I don’t know yet where China comes into play in my business but it’s been a few years that I have this knowing that one day it will. I’ll keep on following you and learn from you. Great To know you.
Warmly,
Sigal Zoldan
Clinical Hypnotherapist & Master Results Coach
Still Single? http://AttractYourTrueLove.com
http://blog.sigalzoldan.com
Sigi,
Thanks for the comments. China is exploding in all conceivable directions. f you have any questions, feel free to ask. Happy to help.
There are many misconceptions about products and businesses in China. You seem to be doing a good job dispelling some of those myths and answering important questions. In a sense, we help our country by working with other countries in positive ways. Thanks or the information.
Nicole,
Thanks for the comment. Positivity is key and negativity is counter productivde in the long term. This much I know.
China is such a massive player in the global economy. I agree that you should be utilizing professional services when dealing with another countries cultures, customs, and laws. It is good points you make about enlisting services for future planning as well as present implementations.
Adrian,
Thanks for your comment. Like they say, f you don;t know where you are going, any road will take you there. Planning is essential.
You know Gary, I always thought that business was all about who you know. You have dispelled that idea. It is not all about “knowing a guy” in China. It is much more about contacting someone who understands the risks and is an expert in the area.
Trevor,
In addition, it is about taking the time to build a relationship. Thanks for the comment. Appreciated.
Gary
Hey Gary,
I happened across your blog through the TSA spreadsheet. You raise some interesting points and some considerations worth noting. I believe that many Americans (although we buy many Chinese goods due to the low cost) feel that the quality of the manufacturing is lacking coming from China. In fairness, this could be that the Americans who are importing goods into China are only purchasing the low quality products to save pennies while it could very well be that China has some very high quality products and they just don’t make it available in the United States?
My comment is not intended to offend you but the fact is many Americans consider Chinese manufactured products to be “junk”. What do you attribute to as the reason that a majority of Americans feel this way (even though they will still purchase the goods due to the low cost)?
~Scott Manesis
Scott,
You are absolutely right about the quality. The buyer controls the quality not the manufacturer. It is like the old saying, you get what you pay for. There is no lack of quality in China, it is just a mater of the buyers standards and what the market will accept.
Thanks for commenting.
Gary, not being a person who has a need for your services, I found this post very interesting. Especially when I read your reply to Beverly McGregor Monical about why USA loses business to China. The world has changed and outmoded thinking needs to change when are people going to wake up? I have copied your reply and will be sharing with many of my friends.
Perry,
Hi praise. Thanks for that. And the world is becoming so small in our lifetimes. Governments around the world are being tested right now including here in the US. Interesting times. Thanks for the comments.
I would like to learn about China Sourcing, however I’m sorry I don’t know enough to comment
Ross,
In China it is about building relationships, setting standards and never stop listening.
Gary
What a life you are living. Working and living in a foreign land and being able to introduce others to a new culture and way of doing business. Awesome.
Steve
Thanks Steve,
My only regret is that I did not start my China adventure 10 years earlier in the late 80′s. I just got back from Shanghai and thinking about when I can go back again.
You are so right. Everyone needs to ask themselves how they can expand their market and reach new people. It’s essential to have a guide you can trust that can smooth out the path and manage risk.
Debbie,
Thanks for your comment. Appreciate it.
Hey Gary, I completely agree with your fundamental values. Its awesome that you see risk not as just a four letter word, but also an opportunity for ultimate success. I view it the same. Thanks for your awesome value here. I’ll try to connect with some Chinese Business Men for sure after reading this. God Bless, Curt aka CBiz
Curt,
Thanks for commenting. I am in Shanghai right now. This is my 38 trip to China I think and I am just as excited about this trip as I was on my first trip. So much opportunity here.
Good information there. I must say that I have never had any luck with outsourcing. As you say, it usually starts well enough and then unfortunately the tendency is to either work less efficiently or rack up the prices to coincide with market value of the place where the client resides rather than where the outsource employee works from. Kind of defeats the purpose. But you may right. I probably have never found the right outsourcing company.
Stevie,
Thanks for the comments. It is all about relationship. I am in Shanghai right now doing customer relationship management stuff. It is important to be working as transparent as possible to prevent some of the price creeping and quality issues from occurring. Transparency is the basis our our business model.
Gary, I enjoyed the information in your article. Very well written. You allow your readers to consider other areas(of the world) in which to prosper and grow in business. Before reading your article I would have never entertained the idea of business in China. As a leader in the seizure support service area I don’t have a China plan at this point. As the National Seizure Disorders Foundation grows and expands into product sales, the information you shared in your article will be the power needed to consider a China plan.
Tonya,
Thanks for commenting. Perhaps someday China will be a customer of yours. I have a friend who has found consulting success in China with his physical therapy techniques that he shares with universities. Perhaps there is knowledge that you have you could share with China. They are thirsty for knowledge. You might start investigating those kind of connections. Who knows!
Gary I was thinking about the whole manufacturing in China topic and I have a few question. I figured that you would be the right person to ask. What is the savings one can expect through manufacturing in China and what is the lead time for the products to arrive in the US. Thanks for your insights.
Karin,
Those are great questions.you can expect 12% to 45% off the top of what you would pay wholesale here. On average about 30%. In some cased 80%. It just depends on the item. But another big advantage is that working directly with the factory allows you to create your own custom brand and to tweak existing item to your specification to help you differentiate form competitors.
The lead time is variable, depending on the item and size of the order, burt in general terms, it take an average of 3 to 6 weeks to manufacture and 4 weeks in transit.
In addition, the factory will want 30% payment up front and the balance upon shipping. And we do the quality control to insure that there are no surprises when you receive your goods.
I feel bad for the American business that lose business to China but maybe if they took a lesson fromChina they wouldn’t lose as much. A great post Gary.It makes me think…
Beverly,
I feel bad too. And I see this more than most. The three big reasons the US business loses to China are; Taxation, Litigation and Regulation. Cheap labor is a distant 4th. Other than Japan, businesses in the US pays more taxes than anywhere on the planet. And the dirty little secret is that businesses really do not pay taxes. They pass that cost along to the consumer as they would any other cost. So while some think they are getting even with big business, all this kind of thinking does is raise prices, and the consumer votes with their wallets. So a company, out of necessity has to look to another country to manufacture where taxes are lower, or go completely out of business. And now that the world is so interconnected thanks to the internet, you can order anything from anywhere.
The wold has changed and outmoded thinking needs to change. If the US wants to compete, we need policy changes that reflect reality. (IMO)
Hi Gary,
I was actually thinking about outsourcing some of the aspects of my internet business soon. Maybe China is a solution… I’ll consider it when I feel ready. Many entrepreneurs I know work with guys from the Phillippines, but it is always possible to find quality people you can trust.
George
George,
If you want to source products in China, we can help. But if it is internet services like SEO work, you are probably better off with the Philippines as the language is a pretty big barrier for hands on work.
Yes, I was thinking about SEO stuff or things like article writing, spinning and so on. I’ll think about it and I am sure I can find a decent solution (maybe even american people even though they charge a lot more but at least I have no doubt that they can write in perfect English).
Have a grat day,
George
Hi Gary. I don’t think I’ll be doing business with China any time soon, but I always find your site interesting. My husband was in the Navy and has always had a love for the people in the Orient. I know that a lot of people find the Chinese kind of scary, and it is good to know that there is someone like you to help them navigate the waters.
Wishing you a song in your heart,
Miss Leslie @ Music with Miss Leslie.com
The people and culture are wonderful. One of the big factors that keeps me going back.
Gary wow the internet and TSA are amazing. I never thought I would know a guy that lives in China and could help me if wanted to outsource business in China. It takes away a lot of the hesitation I would have.
Steve
Steve,
Thanks for commenting. China and business is my passion.
Hey there Gary; this is my first time really checking out your site, and I must say that the information you’re providing is amazing my friend. I’ve never really thought seriously about anything like dealing with China in business, but you’ve shed some good light on the benefits of it. Thanks so much for sharing.
Joe,
Thanks for the kind words. It is all about China and best business practices on this blog. I hope you will find it interesting enough to return.
Hi Gary,
Thanks for sharing you tremendous knowledge of sourcing in China.
As an employee of a manufacturing Company for the past 23 years, I can certainly relate to and understand the importance of formulating a business plan that includes China as a strategic partner.
Your advice is certainly sound when it comes to seeking assistance from the experts and not going it alone. The risk may not be as great as businesses fear, but the risk factor will certainly be reduced with a wise decision to get help.
To your massive success,
Marc
Marc,
Thanks for your comment. It is interesting how risk is viewed as negative. We fear flying even though it is much safer than driving, but have no problem moving a mile a minute on a busy freeway.
Hi Gary,
I have sourced a product from China before and it was a little tough. I learned a lot from my mistakes and it could have gone a lot smoother had I taken some different steps in the beginning.
you make some really good points about including china in your business plan and getting professional help. Getting professional help is the best advice you could give.
Thanks for sharing,
Kevin
Thanks for your comments Kevin. It is always nice to hear from someone with China experience.
Hi Gary,
I find business in China fascinating, there are many misconceptions about it and I love to come here and learn more about it!
I think that guidance from a trusted source is essential – I would certainly hire an expert if I was going to do business in China.
Emma :-)
Emma, Thanks for commenting. China’s more than 5,000 years of continuous history is fascinating in itself.
Hey Gary,
You do a great job of sharing how great of an opportunity there is for businesses in China. Thanks for continuing to do that. I can remember in one of my businesses China was considered a place for cheap labor at the risk that they would steal your design and manufacture it and put you out of business. Thanks for allowing us to see what is really happening in that country and how we all can work together for great abundance and success.
Keep up the great work.
Make it a great day!
God Bless,
The GREAT Edward!
Edward,
It is not cheap labor that drives business to China. It is Taxation, Litigation and Regulation that forces business to leave the US. Thanks for commenting.
Gary,
It sounds like China is a great place to do business… of course with the right guidance. This applies in so many aspects of our lives. There is great rewards in many risky situations, and by seeking out the assistance of those in the know, with the right experience, those rewards can be realized.
Thanks,
~ Pat and Lorna
http://TheCoolestCouple.com
Pat and Lorna.
Thanks for your cool comments. It is prudent to remember that “you don’t know what you don’t know” and no one achieves success without help.
Hi Gary,
You have taught me much about the importance of incorporating China into a company’s business plan and I am excited to share with my network that you are the trusted authority on China Sourcing and building business partners in China. Companies need to understand the differences and the risks associated with doing business with China that can be minimized by incorporating an expert like yourself into their plans!
Clare, Thanks for commenting. It is all about planning, execution and assessing or measuring. But vision comes first!
I agree with you that if you are in the manufacturing business, you should consider China. No doubt about it. There is also no doubt in my mind that we all need help when we go into such an endeavor. What better person to approach than you, who has done business in China for many years and understands both the Chinese and American market and culture.
Karin, Thanks for your kind words. It is high praise from someone who as dedicated so much time and knowledge helping people on line.
Gary,
I love what you said, “I equate risk with positive outcomes like opportunity, stability and growth. And the safe way to manage risk is through your business plan.” So many of us think of risk as dangerous and something to avoid because of the potential disaster. But how can we succeed at anything if we don’t risk getting out of our comfort zone? The only business I have done with China is to buy these incredibly beautiful Collector plates. Your explanations in your blog posts about the level of integrity, skill, and intelligence of the Chinese makes it certainly worthwhile for businesses to expand to China.
Erica
Erica,
Thanks for your kind comments. I think we need to redefine risk. So many people are held back from achieving their human potential because they have this overwhelming negativity about almost any risk.
I like how you point out the risk of stagnation. I am not sure if China is always the right answer, but being unresponsive to change is almost always terminal.
Alex, Thanks for the comment. China is not always the answer. Sometimes it is the problem as they are a fierce competitor.
Christine, Thank you for commenting. It is a tricky thing, trying to inform without prosthelytizing. I hope it sounds sincere, that no matter what your approach to China is; get help.
Hi Gary ~ After reading your post, I can understand the importance of having the right connections if a business were to look at adding China to their business plan, you did a great job of conveying that point. I also agree that it would make sense consider China as an important present and future market (for reasons such as you’ve noted). Christine
Gary,
I enjoyed the article and the perspective of including China in the company business plan. Chinese business will be a partner or competitor one way or another.
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