Is price the only factor to buy from China?
Post 1 of 31
Dear Friends
I would like to know are prices only factore China is prefered over other or is there any other factore also.
Madhur Agarwal
I would like to know are prices only factore China is prefered over other or is there any other factore also.
Madhur Agarwal
03 Jan 2008 01:59
Post 2 of 31
Replying to [Madhur_Agarwal]:
In my opinion, it is not the only factor, but it is the most important factor. To strengthen our competitiveness, we shall improve our quality and service facing the act of currency rate's up between Chinese Yuan and US dollars which makes the price higher.
In my opinion, it is not the only factor, but it is the most important factor. To strengthen our competitiveness, we shall improve our quality and service facing the act of currency rate's up between Chinese Yuan and US dollars which makes the price higher.
04 Jan 2008 03:46
Post 3 of 31
Replying to [Madhur_Agarwal]:
I believe price is the differentiator when buying products from China. And this comes way back since Deng Xiao Ping openess to the West in 1992.
Back then The west countries were investing heavily in new technologies to improve the productivity. China policy did not bother in investing in technology, as they said we have unlimited resources of manpower, they thought no need to improve productivity with technology but to build huge factories. So they have socks city, silk city, toys city. In Silk City they produced more than 7 billion silk ties last year (from NY times article) more than people in this world, and they are still planning to build more factories in this city to manufacture more ties.
Maybe that scenario is changing nowadays, as China is realizing the power its trade business has generated. But in any market you will have different segments, some customers want to buy cheap toys, others want mid-price toys, and others will want high quality toys. So chinese business people have mastered the process to produce low-price items and also providing efficient transport routes, flete charges are not expensive considering imports from orther countries.
If you are in the market for low-price items China is a safe bet.
Hope it helps
Vicente Huaman
I believe price is the differentiator when buying products from China. And this comes way back since Deng Xiao Ping openess to the West in 1992.
Back then The west countries were investing heavily in new technologies to improve the productivity. China policy did not bother in investing in technology, as they said we have unlimited resources of manpower, they thought no need to improve productivity with technology but to build huge factories. So they have socks city, silk city, toys city. In Silk City they produced more than 7 billion silk ties last year (from NY times article) more than people in this world, and they are still planning to build more factories in this city to manufacture more ties.
Maybe that scenario is changing nowadays, as China is realizing the power its trade business has generated. But in any market you will have different segments, some customers want to buy cheap toys, others want mid-price toys, and others will want high quality toys. So chinese business people have mastered the process to produce low-price items and also providing efficient transport routes, flete charges are not expensive considering imports from orther countries.
If you are in the market for low-price items China is a safe bet.
Hope it helps
Vicente Huaman
04 Jan 2008 11:34
Post 5 of 31
Replying to [potato flakes]:
Dear Friend
I do agree with you. Quality and services are as important as price.
Madhur Agarwal
Dear Friend
I do agree with you. Quality and services are as important as price.
Madhur Agarwal
04 Jan 2008 22:04
Post 6 of 31
Replying to [Vicente]:
Dear Vicente
Thanks for the interesting and valuable information.
So, every one seems to agree that price and production are only factor China is popular.
Though, It appears that they are now changing there focus to price based competition to more value additions.
Madhur Agarwal
Dear Vicente
Thanks for the interesting and valuable information.
So, every one seems to agree that price and production are only factor China is popular.
Though, It appears that they are now changing there focus to price based competition to more value additions.
Madhur Agarwal
04 Jan 2008 22:10
Post 7 of 31
Replying to [Vicente]:You are right partly.
As I know, more and more factories are willing to invest for know how
and import machines from the States and Europe and Janpan to strengthen their quality and develop new designs as the competitions are so much keen among the trade.
Now, good and big factories normally got enough orders and do not need so many new clients.
If you are big buyers, sure you can find the right suppliers more easier; if buyers like us medium to small sizes can find good factories while you are lucky. However, sometimes it is quite difficult
to locate the good ones especially for those new comers. Thus, scams are easily cheating when we do not have the good connections and know-how.
Agreed that prices act as one of the main factor to attract customers coming to China for buying, but the convenience and concentration
of materials related parts or assembling semi-finished goods are all
one after the other like the silk cities, cloth centers, plastic trade malls or jewelry manufacturing bases and so on. Many buyers find much more conveniences to travel to China and find the stuffs so concentrated. May be the communications are not good for the general public do not understand English. But many business men
ahve no problem at all to travel in China by using their experiences
by employing some local helper, or ask the hotel to arrange some local interpreters to visit the factoies.
With the improving transportations , like the "an hour travelling zones"
for Canton Province, the province government is working hard to target this province for people and goods (logistic) travelling from and to the major cities all witnin an hour zone by 2012 or before. Can you imagine, how fast and convenient to do business in between each major cities in Canton??
While you are well connect with the suppliers, some of us are also interested to develop the business for the China market. many people got the dream of thinking how big the China market for any kind of products and services. Of course it takes time. But it could one of the factors that gives the charms to business people from outside of China.
Thanks.
As I know, more and more factories are willing to invest for know how
and import machines from the States and Europe and Janpan to strengthen their quality and develop new designs as the competitions are so much keen among the trade.
Now, good and big factories normally got enough orders and do not need so many new clients.
If you are big buyers, sure you can find the right suppliers more easier; if buyers like us medium to small sizes can find good factories while you are lucky. However, sometimes it is quite difficult
to locate the good ones especially for those new comers. Thus, scams are easily cheating when we do not have the good connections and know-how.
Agreed that prices act as one of the main factor to attract customers coming to China for buying, but the convenience and concentration
of materials related parts or assembling semi-finished goods are all
one after the other like the silk cities, cloth centers, plastic trade malls or jewelry manufacturing bases and so on. Many buyers find much more conveniences to travel to China and find the stuffs so concentrated. May be the communications are not good for the general public do not understand English. But many business men
ahve no problem at all to travel in China by using their experiences
by employing some local helper, or ask the hotel to arrange some local interpreters to visit the factoies.
With the improving transportations , like the "an hour travelling zones"
for Canton Province, the province government is working hard to target this province for people and goods (logistic) travelling from and to the major cities all witnin an hour zone by 2012 or before. Can you imagine, how fast and convenient to do business in between each major cities in Canton??
While you are well connect with the suppliers, some of us are also interested to develop the business for the China market. many people got the dream of thinking how big the China market for any kind of products and services. Of course it takes time. But it could one of the factors that gives the charms to business people from outside of China.
Thanks.
05 Jan 2008 06:56
Post 8 of 31
Replying to [Madhur_Agarwal]:
I am very surprised by this quesiton and it is very simple.
Most chinese products are not what you expect. Living in china and working with chinese workers and factories every day i have to day they just do not care about anything. Products have no meaning to them. Workers cannot even handle products right. Foreign companies try to get chinese companies to make goods according to specs but it works only in less than 5% of all cases. Which means 5 percent of prodcuts are good and the rest is junk. Mabye not junk, but they are truly garbage products which last a short time and then get thrown away. So the answer to your question is that in 95 % of all cases, yes product is the only reason. Remark 5% is in my opinion a high number.
Take care,
Michael
I am very surprised by this quesiton and it is very simple.
Most chinese products are not what you expect. Living in china and working with chinese workers and factories every day i have to day they just do not care about anything. Products have no meaning to them. Workers cannot even handle products right. Foreign companies try to get chinese companies to make goods according to specs but it works only in less than 5% of all cases. Which means 5 percent of prodcuts are good and the rest is junk. Mabye not junk, but they are truly garbage products which last a short time and then get thrown away. So the answer to your question is that in 95 % of all cases, yes product is the only reason. Remark 5% is in my opinion a high number.
Take care,
Michael
06 Jan 2008 07:31
Post 9 of 31
Replying to [RealDeals]:May be you are not lucky and just got 5%
as a whole. My personal experiences are around 60% if you really
know how to source the right ones.
Good luck!
as a whole. My personal experiences are around 60% if you really
know how to source the right ones.
Good luck!
06 Jan 2008 09:06
Post 10 of 31
Of course a customer that pushes prices down is also going to be pushing the factory to find ways to cut corners to meet those prices. So I would suggest that anyone who is having 95% quality problems may be trying to get a square peg to fit into a round hole here.
The lowest of the low prices are of course going to be offered by the factories desperate for business. Why are they desperate? Perhaps they are new and have no experience and no customer base - which would explain the quality problems. Perhaps they are just a low quality factory. Either way you get what you pay for.
So to my mind while price is a big consideration in choosing suppliers, buyers need to exercise commonsense and not always assume that the cheapest price is the best deal.
Use the same logic that you use back home when getting contractors to do work on your house - get at least three quotations and all else being considered probably choose the guy in the middle.
The lowest of the low prices are of course going to be offered by the factories desperate for business. Why are they desperate? Perhaps they are new and have no experience and no customer base - which would explain the quality problems. Perhaps they are just a low quality factory. Either way you get what you pay for.
So to my mind while price is a big consideration in choosing suppliers, buyers need to exercise commonsense and not always assume that the cheapest price is the best deal.
Use the same logic that you use back home when getting contractors to do work on your house - get at least three quotations and all else being considered probably choose the guy in the middle.
06 Jan 2008 16:56
Post 11 of 31
Replying to [Madhur_Agarwal]:
As you know,Comparing with other factors,price can play an important role,but not only one,which depends on industry characteristic. very important for labor intensive industry ,not for knowledge concentrated industry.meantime,with upgrading of an industrial structure and introducing science and technology."made in china" products with high quality and best price become popular all over the world.
As you know,Comparing with other factors,price can play an important role,but not only one,which depends on industry characteristic. very important for labor intensive industry ,not for knowledge concentrated industry.meantime,with upgrading of an industrial structure and introducing science and technology."made in china" products with high quality and best price become popular all over the world.
06 Jan 2008 18:14