So often I talk with people who are looking at China as the solution to all their problems. Those looking to sell their products here often view the market as an ATM, while those looking to source items think it’s an endless supply of cheap goods.
They’re both wrong.
Recently I was contacted by a friend working for a large European company. They were having difficulty sourcing their raw materials from Europe. After dealing with delays, they were fed up and hoping to find a quick, easy solution in China.
While I’m not in the sourcing business, I’ve been here a long time. I offered to make a couple calls to people who know more than I do as a favor to a friend.
As it turns out, there were indeed sources of the products in China.
BUT… the costs for the Chinese sourced products were approximately 30% higher than their existing European supplier.
“This is impossible,” my friend said…
China is a competitive marketplace just like everywhere else. It’s not the be-all, end-all easy solution to your problems.
If you want to succeed here, you need to do your homework FIRST.
Take the time to truly understand the market, as well as what your end goals are. When you take a hard look at both of those things, the puzzle pieces may not always be a good fit.
When you go in with clear expectations and a realistic understanding, China can be an amazing place to do business.