Author: 露露

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Elksourcing：Skills Quality Control Specialist Should Have

Apr 17, 2021 , by 露露

As we know, for China sourcing, it is very important to check the quality of your products before shipments leaving China. From manufacturing to packaging to any other process at your supplier’s facility, having a skilled quality control specialist checking every step can benefit your business. These specialists use their knowledge and skillsets to help your company to run your sourcing business well, and you’re your time and money.

1) It All Comes Down to The Team

One of the most important things in any business is the workers themselves. Having a team that works harmoniously means things will run smoothly like a well-oiled machine. Specialists in quality control in China will check that each team member is doing exactly what they need to do for the business to deliver the best product. Finding ways to save time and help each team member work at their best will ensure a high-quality standard throughout. The company will surely have needs that should be met and ensuring everybody has the appropriate amount of responsibility and is sharing the workload will make for a cohesive team.

2) Communication and Leadership

The teamwork doesn’t just mean those working at entry-level positions. Any leadership positions at the company should also be checked to ensure they are effectively communicating with their teams. Staff members will be at the most productive when they have a manager who is inspiring and knows how to lead the team on a daily basis. Ensuring the staff has a good support system in their leadership team will help everybody work to the best of their ability. Having leaders with a positive attitude and who are willing to learn new ways to help the work output be at the highest standard will also help inspire the rest of the staff to follow suit.

3) Problem solving

If a problem arises in the workplace, your staff should know what to do. Quality control specialists can ensure everyone has the training to work through common problems that arise in your type of industry. Having a team and leadership who have the knowledge of the industry is important, but even better is when they know how to strategically approach a problem to come up with effective solutions.

4) Working with data

You likely have a lot of data that can be analyzed to help your company grow and be the most productive. Checking that you have high-quality information that your staff can work with is the best way to use the research for your benefit. Having employees who have the skills to work with statistics, data, and research is key.

Using quality control specialists in China to benefit your business helps keep your company on the right path forward. Finding where your processes need extra help can benefit you in the long run.

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Elksourcing：Background Check on Chinese Suppliers

Apr 17, 2021 , by 露露

I frequently hear the stories about importers who take high risks by not doing any quality control and end up with bad results. In my opinion, the most under-rated tool to reduce risks in China is certainly running a background check on potential suppliers.

1) Choose the right target

Do not waste time searching information about the company mentioned in the salesperson’s signature, or on the trade shows’ booth. They might actually steer you toward another company when time comes for payments.

Ask for the company name and address that will be mentioned on the invoice. Or, better yet, ask for a pro forma invoice (if both parties already have a good idea of the products & pricing) and look at the company name on that document.

2) Scare unscrupulous companies away

Tell potential suppliers that you’ll have their factory audited before any PO is issued, and later their production inspected before any shipment is authorized.

Mention it right away, from the first email. If the supplier refuses it or looks flaky, it is a red flag!

By the way, factory audits are the right tool to verify a supplier’s claims about their production capability. Most quality control firms, and some sourcing agents, can audit a factory based on a checklist that corresponds to your needs. Prices range from 200 to 500 USD for one day of work, in the main production areas.

3) Spend 5 min on Google

Open Google and search” [company name] + scam”,” [company name] + dishonest”, and a few variations. Importers who got a bad experience often try to leave a trace about it on the web.

While searching the supplier’s company name, you will likely find the profiles they created on several B2B directories. Look at the addresses and phone numbers associated with the supplier’s company. If they are not the same, or if the supplier does not respond when you give him a call, he will have some explaining to do. 

You might also see that they participated in trade shows recently. This is a good sign. A booth is an investment to get new customers. And repeated presence in the same trade show is the sign of a company that cultivates relationships with the same customers.

4) Use B2B directories

As mentioned above, the supplier has probably created profiles on several directories. And, if they have a paying account, some information on their profile might have been verified by the company behind the directory.

For example, Global Sources checks important data (depending on the amount of the contract) such as start date, number of staff in each department, factory ownership, amount of sales, brand names, and so on.

The tendency is to show more and more of these data out there, in the open. It contrasts strongly with China’s culture of opacity, and I think it is a very good thing.

However, if this method doesn’t help, you can pay for a background check and get information first-hand.

5) Background checks, together with professional advice

If you do not like DIY solution, a sourcing company that works in China can help you. If you are not familiar with Chinese business practices, they can smell inconsistencies or red flags and warn you.

If you are about to place a large order with a new supplier, I highly advise to work with a sourcing agent, both for due diligence and for drafting an OEM agreement.

Note that, in this case, the supplier knows an investigation is under way. Again, I believe importers should not be apologetic about this.

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Elksourcing：Suggestions about How to Promote Your Products

Apr 17, 2021 , by 露露

We all agree, the success of your products on market can vary greatly on how you promote them. In this article, I’ll share you some suggestions, following them will enable you to achieve a competitive advantage in the market and get better placement for your products.

1. Be honest

The best way to promote your products would be to sell them the way they are! Focus on the upsides of your product or service but avoid outright bragging. Market researches show that people are less likely to go for products that just plainly state why they’re the best. Try to spice it up, but be honest about your products. This will not only make a good name for your product, but it will make people appreciate it more.

2. Hit multiple markets

The chances of your product getting more attention will be much better if you launch it in multiple markets. This is especially important if you’re launching a new campaign. Cause if this is the case, you’ll want to position your products as well as possible. You can achieve this by casting a wide net and promoting your products in as many markets as you can. Once you get a decent foothold, all that’s left is to do is to find reliable exporters and you’ll be able to do your business worldwide!

3. Word of mouth

In today’s world, we tend to forget the importance of word of mouth promotion. However, this is usually one of the safest ways of promoting your products and services. A recommendation from a satisfied customer can make your product well-known as well as build up a good reputation for your company.

4. Include your consumers

Whether it’s a service or a product you’re trying to place on the market, talking to your customers is a great idea. Apart from promoting your merchandise, you’ll also be improving it. So, make online surveys, open an email account where your clients can send what they think and try to include your consumers in special promotions.

5. Build up hype

If you’re launching a new product, a great way to promote it is to let people know it’s coming. This way you can get everyone interested before your products even come out. To do this, you can visit trade shows, organize promotions and offer pre order packages. Of course, the approach you choose should depend on the product you’re trying to promote. Be very careful, as this approach may backfire if your product is exclusive or prestigious. If this is the case, you’ll want to promote your products in specific circles and target your market carefully.

6. Optimize your approach

In many cases, you can even find a specialized software made specifically for your market or trade. All you need to do then is choose the marketing program you want and adapt it to your promoting needs. Additionally, these programs can help you not only promote your products, but also get organized. There are so many different software options today that you can even get different software solutions for moving companies. So, just look around for the perfect combination and you’ll definitely find what you need.

7. Tactics

Apart from the long-term strategies we talked about above, there are certain things you can do to get faster results when promoting your products.

1). Social media – nowadays, this type of marketing has become essential for any kind of product placement. The way you decide to conduct it should fit your product and will only be limited by your creativity.

2). Online promotion – apart from social media, there are a lot of other ways to promote your products online, and you should choose the ones that fit what you need the best.

3). Work with an influencer – getting a famous person to use your product can be an incredible boost.

Limited edition – if your product allows this, it’s a good idea to make a limited edition of it with some special additions. It’s a good idea to introduce a “customers’ choice” version of your product which will change according to your customers’ preferences.

4). Flash mobs – and other forms of guerilla marketing are also an excellent way to put your services out there. Just make sure that they’re appropriate for your merchandise.

5). Direct mail – do market research and find those who are the most likely to use your product or service. Send them info about what you’re offering and let them know you’re at their service.

Finally, the best way to promote your products is to use the techniques and tactics that suit you and your business the best. So, don’t opt for promoting solutions just because they’re modern or high end. Instead, choose the ones which are the best option for you. This will vary from person to person and from product to product. So, make sure you research the market and know what your product needs. Hopefully, we’ve given you some interesting ideas which will help you find the best ways to promote your product in particular.

How To Import From China

Elksourcing：7 Tips on Buying from China

Apr 17, 2021 , by 露露

Buying from China is not an easy task, especially for the newbies. The importing process can be extremely complex, confusing, and costly. Expected gains can often be erased by long transit times, rising or fluctuating delivery costs, regulatory fees, and unexpected delays.

Here are 7 tips for how to buy goods from china, and what you can do to make the process smoothly and efficiently.

1. Plan your import objective 

Before embarking on the actual importation process, be clear about what you want to achieve. Choosing the wrong products will make the business lose sufficient time and money. All successful importers know the importance of choosing the right products for reselling. Therefore, be sure to gather sufficient informationabout your goods of choice. Also, obtain descriptive literature, product composition, and samples before making a final decision. This is crucial in furthering your understanding of the products as well as what you will get in return. Once you have sufficient information about the products that you want to buy, learn about how they can be imported. As you will be shipping in bulks, outsourcing the work to a freight forwarder is the cheapest way to go. However, if your packages are small and for personal use, courier delivery service will work better in comparison to the use of big shipping agencies.

2. Familiar with all rules and regulation 
Before buying goods from China, research on the rules and regulations that you need to comply with. Usually, import rules often depend on the type of products that you are importing. For instance, children’s products such as toys have regulation on packaging and credibility.

3. Choose reputable Chinese suppliers 
First and foremost, it’s important to understand that the importer is liable for all the goods that they choose to buy. As such, any compliance irregularities will be directed towards you, not your supplier. To avoid any discrepancies, ensure that you work with a reputable Chinese supplier. Also, make certain that the supplier equally complies with all set regulations.

4. Negotiate the right deal 
Understanding your supplier’s priorities as well as your own strengths and weaknesses will allow you to negotiate the right deal. For instance, you could offer to pay your suppliers more promptly in exchange for better prices. Chinese suppliers believe in building goods business relationships. As such, they will be happy to avail products to you regularly.

5. Have a clear contract in place 
As with any other business transaction, importing goods from China should also involve a clear contract between you and the suppliers. Clearly, state the payment and delivery terms that you have been agreed upon, the currency and payment method used.

6. Understand all commodity codes 
Buying from China requires using the right 10-digit commodity code for your goods. This will assist in filling out the paperwork accurately and even looking up important information such as duty rates and restrictions that apply to your goods.

7. Be conversant with taxes and duties on imports
All traders who buy goods from China have to pay a Value-added Tax (VAT) and import duty before being cleared for entry into their country of choice. However, this is usually dependent on the classification of goods. Follow these steps and you will benefit from importing goods from China. Whether you are a first-time importer or have been frequently using this process as a line of trade, these tips will always be applicable. They are exactly what you need to make your business thrive.

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Elksourcing：Tips about Sourcing from China

Apr 17, 2021 , by 露露

For many businessmen, especially for small businesses and first-timers, sourcing from China can be a daunting task, as they might not have the resources to establish full-scale overseas operations as the way big businesses do. 

Here are some tips that can help businesses like yours get an idea about the various options available out there in the market, and zero-in on the right supplier to meet your sourcing needs.

1). Check out various product manufacturers  

Use various sourcing tools to get an overview of the options available in the market.

An internet search on sites like Global Sources, Alibaba, etc. can generate great sourcing leads on reliable suppliers.

Sourcing magazines & trade shows are also vast sources of information on wholesale distributors, manufacturers and suppliers of products. While social media cannot be used in isolation to identify suppliers or for product sourcing, it can be very useful to get feedback on particular suppliers.

2). Short-list suppliers

Visiting a company personally is the best solution for verifying its authenticity, of course.

When that’s not logistically possible, turn to professional sourcing companies that do a series of verification checks on companies listed on their site.

Such reputed sourcing companies provide reliable and verified lists of manufacturing companies – accessing these gives small businesses the advantage of finding the right source and being able to make their sourcing decisions confidently.

Choose the right supplier to suit your business needs – by keywords, by product category, and by region. You can also verify supplier credentials by appointing an external sourcing agency in China for due diligence and quality audit.

3). Negotiate with suppliers

Once you have pinpointed the supplier you wish to deal with, then comes the need to negotiate a mutually-beneficial deal with the supplier. This would involve negotiating the price, payment terms, delivery schedule and contingency plans for unforeseen situations.

At this point, you could also make inquiries about drop-ship product services as these may be drop-ship suppliers as well.

Alternatively, there are local third-party sourcing agents who can represent your firm in all negotiations, easing the process for you. This ensures that there is no miscommunication due to language or cultural differences, and it also reduces the risk of unscrupulous suppliers taking you for a ride!

Common issues like shipping, taxes, customs, etc. should all be clearly spelled out at this stage to avoid later disputes.

4). Establish a long-term personal relationship

Even in business, establishing a long-term personal relationship is very important to the Chinese; hence it should be to you too, to ensure that your sourcing is smooth & hassle-free over the long term.

The cultural, language and business expectations of the East and the West are vastly different and you need to respect these differences in order to maintain a healthy long-term relationship with your supplier.

While factory visits and product QC are key, building ‘Guanxi’ (a relationship) with your Chinese supplier takes personal time & commitment. But it will definitely be worth your while!

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Elksourcing：Benefits of Sourcing from China

Apr 17, 2021 , by 露露

China has emerged as a hot sourcing destination in recent times. A large number of organizations resort to sourcing activities to reduce their production costs. This will give marketers an upper hand as they can sell their products and services at minimal prices when compared to their competitors.

There are some key benefits of sourcing from China:

1.    Skilled work force: The workers of the China are aware of the latest trends in technologies and more importantly, how to implement it in their operations. The education system in the China is different from most other countries. It is robust, affordable, and emphasizes professional skills like engineering and science. The labor force of the China is more and more versed in the technology development. This is indeed a major advantage for marketers as they can get access to the skilled workforce at lower rates. 

2.    Emerging labor market: This is another factor that is intriguing for marketers to conduct their sourcing activities in the Chinese markets. This is creating an expanding job market. The labor costs are also not high. Marketers are looking to make the most of this opportunity. Every marketer wants to get quality results at minimal costs. This is increasingly becoming possible with China procurement. 

3.    Communication: Although most of Chinese people do not speak English, with help of a professional sourcing agent, language is not a barrier while conducting sourcing activities in China. This creates efficient and effective vendor partnerships. When marketers assess their potential partners, they need to search for a correlation between a lower price and a good communication. This results in smooth workflow and minimal delays from miscommunications.

4.    Access to innovation: When it comes to innovation, China has a significant role to play. In this age of cut-throat market competition, every marketer is trying to adopt innovative methods to boost their businesses. This gains an added dimension with the China sourcing activities of organizations. According to research, innovation plays a significant role in enhancing the quality of businesses while simultaneously lowering delivery costs and improving the user experience.

5.    Supplier chain: If a company decides to conduct procurement activities in China, both marketers and suppliers can work collaboratively because of the complete supplier chain in China. 

6.    Cost-cutting: The average labor cost is significantly cheaper in China when compared to America or Europe. This factor also plays a great hand in reducing the production costs of organizations.

Conducting sourcing activities in China hold an array of benefits for marketers. More often, organizations take the help of sourcing agency while engaging themselves in China procurement activities.

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Elksourcing：Common Mistakes to Avoid When Evaluating Sourcing Agents

Apr 17, 2021 , by 露露

Many importers don’t have the expertise, or the time, to find and manage China manufacturing partners. They typically need help from a sourcing agent to handle these tasks:

·       Identifying, screening, and qualifying new suppliers;

·       Help in developing new products/styles with suppliers;

·       Ongoing management of the supplier relationships (communication, quality control, shipments follow-up).

What are the most common mistakes to avoid when evaluating sourcing agents and working with them?

1. Unreasonable expectations

Even the best sourcing agent will have a hard time getting you low prices, on-time shipments, and consistently great quality. If someone promises this to you, you are not talking to a professional.

Know what is most important to you, and plan accordingly. For example, if you absolutely need on-time and high-quality products, then you cannot work with the cheapest manufacturers on the market.

2. Not clarifying the sourcing agent’s responsibility

Let’s say you work with a third-party service provider that takes care of the sourcing/production side of your business. What guarantee do they offer in case a supplier scams you? If shipments are behind schedule? And if you receive junk product in your warehouse?

Will they at least pay some of their fees back to you? Do you have a contract with them?

3. Failing to consider the agent’s geographical presence

If you purchase products that are mostly made in Guangdong province, don’t work with an agent who is only present in Zhejiang. How often will he have face-to-face contact with suppliers (not to mention controlling product quality)?

This is the problem with individual agents: they generally know only one industry in one area.

4. Assuming that they follow a rigorous process

When you evaluate sourcing agencies, try to understand how they work. Request to see their order management system (if any). Even better, ask for examples of factory visit reports, product QC checklists, and QC reports.

If the agent is more disorganized than the manufacturer, he will give you knew headaches.

5. Accepting an inappropriate compensation structure

Giving a commission to a sourcing company is very common. Finding and managing a good supplier it is a lot of work. But, if you keep re-ordering the same products from the same sources, you will probably pay more than you should.

Another option, which better reflects the agent’s work, is to pay a flat fee for each job: identifying and screening suppliers; following each new product development; managing each order’s production & shipment.

6. Insisting on going “factory direct”

If a sourcing agent is watching for your interests on the ground, you should try to purchase directly from a manufacturer, right?

Well, not always. If you import small quantities, large manufacturers will seldom be interested in your business. And trading companies might be the right solution to place production in smaller workshops.

7. Not checking the market price by yourself

How do you get an idea of the market price for a given product? You simply (1) request quotes from 10 companies listed on globalsources.com, (2) eliminate outliers, and (3) calculate the average price.

If the supplier’s price is above the market price, your agent might get a hidden commission. Even the multi-billion dollars “contract manufacturers” play this game when they sell to mega-retailers, so it can happen to you as well.

8. Not asking for reporting on production status & quality

A sourcing agent should work for you, the buyer. You should be briefed every time your agent visits your manufacturers.

·       If they only report on production status when a shipment is delayed, you should ask for regular updates on every production run.

·       If they fail to notice some quality issues, you should request them to appoint a professional third-party inspector (at least for final random inspections). And you should be in CC of the report.

9. Micromanaging production yourself

Some importers ask a sourcing agent for help but keep interfering. They show suppliers that they are the ones taking the decisions. Then what happens? Suppliers don’t listen to the sourcing agent anymore.

Make sure that your sourcing partner is involved in all decisions (you pay for their professional advice, right?), and that your suppliers know that.

10. Relying too much on a third party

What happens if your sourcing agent goes out of business? Or if they re-negotiate the deal and they want you to buy from them? You should be prepared for these situations.

Don’t get locked into a relationship with an agent. You need to know the main actors in your supply chain, and you should get regular reporting on the situation on the ground.

China Sourcing Agent

Elksourcing：How to Find a Good Sourcing Agent in China?

Apr 17, 2021 , by 露露

When your start your business of importing from china, it is advisable to find a sourcing agent to help you, but it is not easy. You may not know how and where to find a good sourcing agent. How to sign a contract with the agent? How to pay the sourcing agent? How can you tell if they are trustworthy? 

Here are some tips for selecting a sourcing agent:

1. Trust is everything

I think you would agree with me that to work with an agent, trust is important. I would rather use a reliable and trustworthy but mediocre agent than someone who is capable but not reliable. Ideally, you need someone who is competent and reliable.

How can you tell if your agent or representative in China is trustworthy? In many cases, first impressions can misguide you. You can do some online research to see if there are any comments and feedback about them. Give them some trial tasks to gauge their performance. You can generally understand their work ethic by working with them a few times.

2. Contract versus verbal commitment

Some buyers think a contract is not important, so they work with purchasing agents and suppliers on verbal commitment, binding by morality and virtue. My suggestion is to sign a contract with your sourcing agent no matter how good your personal relationship is with the agent. Ask the help of lawyer to draft and review the contract.

3. Sourcing companies versus sourcing agents 

Sourcing offices normally have experience in more industries while sourcing agents often specialize in certain areas such as apparel and electronics. If your sourcing projects cover many industries, it is better to use a sourcing company. If you deal with a single industry, you could work with an individual agent. 

Sourcing companies are normally legally incorporated companies, so if they breach the contract, you will have somewhere and someone to chase after. 

A sourcing agent is often a one-man show. If bad things happen, he might disappear. So relatively speaking, sourcing companies are more reliable than agents. 

4. Hire an expert, not a secretary

There are thousands of products global buyers are sourcing from China, and each product is different. Sometimes it takes years to understand the production mechanism of a specific product. A competent sourcing agent should be a product expert. If he does not know the product, he will not know how to do quality control, he will not know the costing, and cannot negotiate the price properly. He might not even know where to buy product. 

That is why Li & Fung hires only sourcing experts with more than 10 years working experience in certain industries. The experience gives them the knowledge of quality control, price negotiation, product research and development. They can deliver a solution.

5. Communication is often a problem

First is the language. You should make sure your sourcing agent speaks your language well enough to understand your emails, and to draft and review an English contract. They should also be familiar with the products in your language (parameters, specification, parts and components, etc.). 

You need a sourcing agent who is well prepared to hit the ground running. If you are looking to build a long-term relationship with your agent, ideally the agent should be proficient in speaking, as in many cases, email is slow, and you will need to call them to speed up the process. 

The efficiency of communication is an issue to look at, especially when there is a time zone difference. Your agent should reply your emails promptly. Instant messengers can be used to speed up communication.