China has a reputation as a global manufacturing giant and offers endless opportunities for entrepreneurs from all over the world. However, newcomers are concerned about how to start a business with China. What are the pitfalls and how to avoid difficulties? Today, we are going to tell you step by step how to build fruitful cooperation with China.
Sellers worldwide, from small entrepreneurs to major retailers, sell goods manufactured in China. This is because in China:
1. Massive state support.
I am not surprised that China is among the 10 countries in the world where it is easiest to do business. After all, the Chinese government is actively implementing measures to support local and international entrepreneurs. The authorities provide citizens with subsidies for business, reduce tariffs for water, land, and electricity for factories.
The country's tax and other investment policies are unparalleled in the world. Since 1985, China's export tax refund policy has been in place. On the other hand, China's import tariffs are getting better and better for foreign companies every day.
2. Low production costs.
China is one of the cheapest manufacturers in the world. Chinese factories produce the entire range of products. And they especially developed in the production of low-margin goods: shoes, clothes, electronics. Therefore, I consider it logical that international companies use Chinese production to reduce the prices of their own products, and Ukrainian entrepreneurs diligently sell goods from China in bulk.
3. Access to a large and constantly increasing market.
Already today, China's domestic market is equal in size to the American one and continues to grow. Experts expect that China's GDP will surpass the US's GDP by 2030. If you want to access a progressive market and increase sales, start doing business with China.
Experts expect China's GDP to surpass that of the US by 2030.
4. Favorable environment and flexible conditions of cooperation.
In China, it is easy to find local business partners and investors who are open to negotiations. I saw that it is not a problem for Ukrainian businessmen to agree with Chinese partners on flexible terms of supply and pricing.
5. Technology and the spirit of innovation.
It will not be news if I say that China has become the birthplace of many of the fastest startups. Just think of the global success of the Chinese giants Baidu, Tencent and Alibaba.
China is years ahead of global markets in product innovation, digital technology and retail. Even Taiwan or Malaysia look like the stone age when it comes to the Chinese spirit of innovation. This also applies to the ease of carrying out transactions in everyday life, which facilitates the sale of goods and services in China.
Shanghai in 1989 and today.
6. Extensive business ecosystem.
Did you know that industrial production in China does not work in isolation, but relies on networks of suppliers, component manufacturers, distributors, government agencies and customers?
Imagine that you will work with a technological giant, where all the processes of the production ecosystem are set to automation.
7. Fast delivery.
Ports and road transport in China are almost perfect. Delivery from China to Ukraine is established and works without any problems. Therefore, it is extremely convenient to import from China and export goods.
Doing business with China requires careful planning and attention to detail. Here's a checklist to help you systematize the process and prepare you for a successful market entry.
First, you need to thoroughly research the market to find out the relevance of demand and the presence of competition. Study the strengths and weaknesses of your business idea and who your potential customers are. Choose an area that matches your interests and experience, and select specific products from China that are in stable demand and relatively low competition.
Use platforms like Alibaba to search for potential suppliers. Check their reliability, reputation, and history, and review feedback from previous customers to make an informed choice.
1688.com is a Chinese website for wholesale purchases of goods focused on the domestic market, so prices are lower. To purchase, you need to contact an intermediary.
To be 100% confident in your supplier, it is better to seek the help of specialists. DiFFreight understands all the intricacies of trade with China, so it knows what to look for and how to identify unscrupulous sellers.
Order product samples to check quality and conduct testing to ensure compliance with standards. If necessary, discuss with the supplier any changes or adaptations to the product to ensure that the final product meets your quality standards and market requirements.
Research market prices and standards to prepare for negotiations. DiFFreight's Chinese-speaking specialists will help you establish communication with the supplier and clearly define the key parameters of the agreement (price, payment terms, and delivery terms).
To set up logistics, you need to
It is often difficult for beginners to navigate taxes, delivery times and methods. Therefore, the best option in this case would be to contact a logistics company that already has established transportation chains and knows all the nuances of taxation and insurance.
DiFFreight's loading calendar. Delivery in the direction of China-Ukraine is carried out regularly
The stage of customs clearance requires a detailed understanding of the customs rules, tariffs, and restrictions applicable to your goods. It is important to carefully calculate all taxes to be paid and prepare all the necessary documentation for smooth customs clearance.
However, to avoid potential delays or problems at customs, it is better to engage an experienced customs broker who knows all the nuances of the process and can ensure that your shipment is cleared quickly and efficiently.
China attracts businessmen with its large production capacity and low prices. However, doing business with China is surrounded by a number of myths that can distort reality and hinder effective and profitable cooperation. Today we will review and analyze the most common ones.
Starting a business with China requires different initial investments depending on the type of business, whether retail or wholesale, and whether you have existing or possible customers.
When it comes to retail in Ukraine, we offer to start with a small number of products by purchasing them in small wholesale amounts, i.e., one type of product per box. Based on our professional experience, the initial budget for small wholesale (depending on the product price) should be approximately $1,000 - $2,000. This amount should cover the procurement, logistics, and additional costs associated with resale arrangements.
f we are discussing wholesale, it is important to determine whether it is small, medium, or large wholesale and whether you have a well-established sales channel. This will help us understand the volume of the first batch required. For a small wholesale, the entry budget is around $3000 - $4000, whereas for a medium wholesale, the budget ranges between $9,000-$10,000. However, please note that these are just estimates, and the final budget will depend on the product type and shipping process.
If you already have a clear idea about the product you need, all you have to do is find a trustworthy logistics company to arrange a reliable supplier, make the purchase in China, transfer money, and prepare cargo for a quick shipment from China to your destination country.
Thanks to cheap production, you can get goods of any quality and at almost any price in China. But it's a mistake to think that all products are cheap just because they have a "made in China" label.
While there are indeed budget products in China, the country is also known for producing high-quality and technologically advanced products. Many global brands manufacture their products in China using modern technology.
It is important to choose suppliers carefully and control the quality of goods when importing from any country, including China.
The irony is that we use high-quality popular goods from China every day. Many Chinese factories make efforts to meet the standards of their products in terms of color, materials, shape, and performance requirements.
The key to success is to find a reliable supplier from China that adheres to international quality standards. DiFFreight can help you find and vet a supplier in China.
Supplier verification is one of the stages of working in the international market
Business communication is always difficult, especially if some of the details of the discussion are lost in translation. Although English is indeed gaining popularity in China, especially among young people and in the business community, it cannot be said that all Chinese are fluent in it. In many regions of China, especially outside of major cities and business centers, English remains little known.
Therefore, it is important for businesses to know the local language or use an interpreter to avoid misunderstandings in their interactions. If necessary, DiFFreight provides its customers with support in negotiations with Chinese partners.
DiFFreight staff can help you negotiate with Chinese suppliers
The Chinese online marketplace shows a wide variety of websites that offer a wide range of goods and services. These sites differ in design, functionality, target audience, and specialization.
From large, multi-functional platforms like Alibaba and Taobao that offer a variety of products for all kinds of consumers to specialized niche sites, each has its own unique identity and business model.
DiFFreight conducts thorough research on sellers in China, including verification of credentials, reputation, and track record. Our professional connections will help you reach the right markets and order goods from China profitably.
Delivery from China to Ukraine can take from several weeks to two months depending on the logistics. Your parcel can take a month or more to get to Ukraine by sea, while an order from China will be here by air in a few days.
DiFFreight has been organizing international logistics since 2020. We know how to order goods from China as quickly, profitably and on time as possible.
The Chinese market is growing every year. So don't trust the myths, believe the facts and use the huge potential of imports from China to develop your business. If you need advice on organizing a supply chain from China to Ukraine, please contact our managers.
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Now is the perfect time to trust the professionals! Choose a convenient way to contact us, and our specialists will help you find, purchase, and deliver goods with minimal risks and in the shortest possible time.
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