The Top Five Rules of Doing Business in
China
 1. Be Flexible and Maintain Diversity of
Sourcing
China is a great place to source consumer
products, but there are still plenty of
risks. Occasionally,
manufacturers go bankrupt, which will create
tremendous disruption if you're doing
business with them.
Therefore, it's smart to be flexible and
maintain some diversity when it comes to
sourcing your consumer
products. This is where having All China
Sourcing working with you to establish
relationships that work.
2. Partner with an Established Sourcing
company like All China Sourcing, LTD!
This sounds like we're only self promoting,
however, most of the reputable sources will
tell you that teaming up with private local companies
provides many benefits. First, they offer
tremendous cost savings
if you outsource manufacturing. Second, they
will serve you better by being your friend
rather than your
competitor. Finally, their access,
distribution channels and know-how about the
domestic Chinese market
are extremely valuable for your market
entry.
3. Look Beyond Lowest Costs
This may seem counterintuitive, since most
companies look to China for lowest-cost
sourcing. But keep in
mind it may not be lower than some of the
other emerging countries. Government
incentives, reliability,
speed of distribution and proper
infrastructure are important factors to
consider when choosing your
sourcing location. Certain provinces may be
good choices for your type of products
because of upcoming
major events or China's strategy to boost
business in up-and-coming inland regions.
4. Use Sourcing as a Tool for Market Entry
and Access
Although exporting to China has become
easier, there is no substitute for being
close to the 1.3 billion
Chinese consumers. Besides, World Trade
Organization rules will make it easier to
distribute goods made in
China to local consumers.
5. Understand Cultural Differences
Although smart and progressive, most Chinese
people lack global business experience.
People over the age
of 35 grew up in an era in which the
government provided everything. Use patience
and flexibility to build
good relationships with both central and
local governments; without financial
drivers, decisions traditionally
were made based upon power and
relationships.
(See Cultural Rules!)
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