How to Export Manufacturing to China
China has transformed itself into a powerful economy, with few European companies able to compete with its ability to manufacture and export cheap goods. However, the country’s wealth has been constantly growing, and is now a very attractive destination for export manufacturing to China. But the trick is to choose trading partners carefully, or you’re liable to get your fingers badly burnt. Several British companies have already had success, such as Jaguar Land Rover, who now exports more cars to China than anywhere else. Smaller companies can also take advantage of this new market, so let’s start with some handy advice on how to start trading with this much misunderstood country.
Do Your Research
It might seem that China has the ability to be self-sufficient, but this is actually far from the truth. Over recent years its economical and industrial growth has been astounding. Small villages have transformed themselves into industrial towns and towns have become bustling cities. China’s population is more than 1.3 billion, and at least 274 of the cities have more than 1 million residents. There are gaps in the market, and with a bit of careful research good opportunities to export manufacturing to China can be found. When a gap in the market has been discovered it’s important to follow up by communicating with organisations such as UK Trade and Investment, the China-British Business Council, and local Chambers of Commerce.
Look at Building Long Term Relationships
If you think that China is the place to make big profits quickly then you’re barking up the wrong tree. To succeed means showing that business will be done over the long term. Chinese businesses are very interested in working with investors from overseas and growing the level of imports, but want to do it by building long-term relationships, that will grow over time. To avoid any pitfalls and open more doors, forge a relationship with a trusted and respectable distributor. Some businesses have chosen to do this by opening Chinese offices and employing staff that are natives. Whichever route is chosen it’s important to carefully pick your partners.
Online Searches are Made Using Baidu not Google
To be successful in today’s modern world means appearing on the first page of Google, but in China Baidu is the most popular search engine. To achieve good placing on this search engine means you need a good web presence. Using a European website with pages added in Mandarin won’t mean your website appears in web searches in China. The website must be registered in China and operated with the Chinese government’s firewall.
Protect Your Product
China may be a dominant force in the manufacture of everyday goods, for example electrical appliances and clothing, but there is an expanding market for more specialised and advanced products. However you must tread carefully, protecting intellectual property and picking partners wisely. Fraud and corruption are still widespread in China, and remember that there are people who will try and steal your trade secrets. When you export manufacturing to China take legal advice to ensure any patents are valid, and guard your secrets as much as possible.
Strathclyde Design Services can be your Supply Chain Managers in The Far East. Our experienced team offer rich experience in sourcing, supply chain management, product cost management, project management, and operations excellence. The objective is to assist companies to operate in the far east, and maximise the potential to deliver products. Find out more.