I worked as exporter, trading agent and importer of goods to and from Pakistan.
As Exporter, i face challenges from China/Korea/India on cost bases! we had good quality products but even marginal profit made us incompetitive.
As agent, i face challenges in finding quality product with reasonable price!!! many chinese/korean/indian products were economical but not quality and reliable products. It hurts you badly when you spend your time and money and find out it worth less.
As importer, i face problem with the committment of chinese suppliers especially!!! they made you happy by quoting good prices and short lead times but you remain cautious about the back-up support and channel optimization. You cant give committment on chinese principals words.
The crux of the discussion is that today its a global village and challenging task to work and get marginal profit unless until you are either FIRST, BEST and UNIQUE in market or working in Monoply.
Best regards,
Fawad Niazi, Manager Business Development, To prevent spam, do not enter your contact information - Moderator
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And sometime you might just lose patient with things turn out of hand. I am claim now and the situation has settle down.
And I do very agree you said that " We really need suppliers who are able to addapt, act and think in the same way as the buyer, in what ever country he is in."
But what happen if the buyer ask for too much, are we still obay and follow? it is my doubt.
The damage done is definitely irreversible. But trying to teach the Chinese not to do OEM alone and go for Branding is going to be a waste of time anybody trying to do that including professionals like you and me.
Price is not the only factor in many markets like India where branding is very essential in the marketplace for the product category to survive and thrive over a profitable long period of time.
Not only do you get a much higher price for your Branded and well Business developed Product range, you get more number of Importers and repeat customers as well.
Many western companies know the power of Branding and professional market development and make a good killing by buying from Chinese factories and selling them across the world at their prices.
The chinese definitely have gotten themselves into a mess for themselves by doing that and are not aware of the hole they are heading. But it is an equally big opportunity for visionaries like you who knows the importance of marketing in it.
Rather than teaching them what to do, you should also silently exploit them on their own game and build up your own brands which is not that expensive an exercise also as perceived to be. Also it is always a net positive game from day one.
You can build up an umbrella brand for the product category you are operating in presently and market many products in the same category by buying cheap from China and selling them at your own prices in fast growing markets like India.
We can help you do that and achive the vision i can understand you are gunning for.
Please contact me directly at multilocation@hotmail.com for a further detailed discussion on this.
Regards,
Parikshit@capacity-india.com
Good Thinking but the Chinese do not just have the Mindset for this kind of visionary thinking.
Regards,
parikshit@capacity-india.com
You are incorrect Manu, the std practice in Shenzhen is wrong as they only charge THC and not ORC, ORC is then passed on to buyer later on which factory should have payed for! if you have a FOB shipment then ALL charges are incurred by seller, plz read the international Incoterms - payment of all transportation and insurance cost once delivered on board the ship by the seller. What some ships and factories are doing is verging on illegal if you ask me or they do not understand what FOB really means!
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