by Mike Bellamy in 'China Sourcing Information Center'
I would like to import bathroom products and other furniture items. I am new in this industry, so would even like to know from which Part of China to get good quality and cheap products which can be used in construction industry. Is it safe to buy products just by ordering online, or should I visit the supplier in person? I would like to know if the import rates from China are the same or different? Would it be cheaper for me to ship a container to Mumbai port, or on the Candla port which is situated her in Gujarat itself?
Let’s look at each question individually.
China is in a state of transformation now as factories are starting to leave the coast due to rising prices and move inland where costs are lower. But there remain many “areas of competency” along the coast that remain cost competitive do to scale, efficiencies, access to raw materials and product understanding for example. So my suggestion is that you try to locate these centers of competency while exploring pricing at a national level. Research where the industry shows are in China for this particular product. The shows are often in the middle of the area of competency. Also, do a quick search at www.GlobalSources.com and note which cities or provinces frequently come up in the search results.
I suspect your problem will not be finding suppliers, to the contrary, I think your task will so become how to pick the best supplier for your particular needs (“cheap and good quality” as you say) from a long list of potential suppliers. For your reference, the following article can walk your through the process of picking a supplier in China: http://chinasourcinginfo.org/2010/04/21/china-sourcing-successfailure-factors/ I think you will find it useful.
In my opinion, based on 12 years in China, I would never buy from a factory unless my team or trusted representatives of my team have recently visited the factory to confirm they are qualified to meet our targets for quality, price and volume. Here is a link to a short video offering some tips for how to safely order from a factory: http://chinasourcinginfo.org/2011/11/19/evaluating-suppliers/ I think you will find it highly relevant to your situation.
That is a good question, but unfortunately it is an India issue rather than China issue and I am afraid I am not experienced enough with India to answer your question. But I can certainly get you pointed in the right direction and help you find an answer. Because the regulations and taxes in India (anywhere actually) can change on short notice, you would be wise to develop a working relationship with a freight forwarder or customs broker based at your local port, who has experience dealing with China imports. They also go by the name “3PL” for 3rd party logistics service providers. These companies are the experts in this area and they make a living arranging shipments. A big part of their job is to stay current on the import taxes and duties. Not only can they quote on the costs of moving your goods to the ports you mentioned, but they can also confirm if there are any import taxes or duties.
Read the article at http://chinasourcinginfo.org/endorsed-service-providers/#3PL to learn how to find a quality a 3PL.
Wishing you successful China sourcing!
Answer written by Mike Bellamy, an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center. Mike is also the author of "The Essential Reference Guide to China Sourcing" and founder of PassageMaker Sourcing Solutions.