Wholesale Sourcing Secrets to Keep You Cool and Dry

For me, these are the early days of Summer here in Hangzhou; the ones that torture you with seemingly random intervals of hazy, hot, humid, and suffocating air that clings to you like a sheet of oily plastic wrap. There are a few merciful sporadic moments of cloud cover and a drop in temperature… but it’s short-lived. One is faced with the fact that it will simply be a long, hot, and wet Summer this year.

Just like every year.

So, what better way to beat the unbearable humidity than to indulge in a little reading of some bone-dry material? That’s right, while I’m all about having a bit of fun and enjoying my down time as much as the next guy… it pays to invest a little of that time towards something that will give you the advantage, as you traverse the often-hazardous terrain of China’s wholesale trade industry.

My recommended reading for you this week is none other than the somewhat hard-to-swallow monthly newsletter series published by the good people at The Beijing Axis. Although it’s got a thick and slightly crusty exterior, there’s a valuable and tasty reward at the core, if you’re willing to curl up with this one and chew on it for a little while. Be sure to keep a nice tall glass of water nearby.

Of particular interest to me was the October 2008 issue, with a section titled the “China Sourcing Strategy” on page 14. Not exactly a lot of entertainment, but a very good commentary about the economic crisis, and its impact on the area of foreign trade in China. There’s a few words about the “immediate fallout” that could be attractive to the savvy wholesaler, since this spells o-p-p-o-r-t-u-n-i-t-y for anyone who wants to capitalize upon a sagging market condition, in order to gain some unprecedented leverage. In other words, it’s time to wheel and deal, as China struggles to keep up the façade of a cool, calm, and collected empire-on-the-rise… but gladly takes a seat next to you at the bargaining table, if you’ve got something of immediate value.

Don’t be fooled, China may appear to be the new bully on the block, but the truth is that she needs us as much as we need her. Global markets are far too intertwined for anybody to have the ultimate winning hand, and for anybody who wants to have a go at making it in the wholesale business, these bad times might just be the best ones to get started in. No need to work up a sweat, though.

SINOCES Is On The Way

No, it’s not a name for another airborne illness that makes the swine flu look like a case of the sniffles… it’s a trade show that wholesalers and buyers of electronics should know about. It’s also coming up very soon.

So… you consider yourself to be a big electronics freak, and you love checking out all the new toys on display, as manufacturers and distributors are whipping out the latest and greatest in high-tech gadgetry? If you’re going to be in China early next month, you might want to check out the China International Consumer Electronics Show (SINOCES), because it’s touted to be the largest consumer technology show in the Asia-Pacific region. Among the 450 exhibitors, approximately 70,000 attendees are expected to join the fun. Over 300 media representatives will also be there, hailing from press outlets around the globe.

Some of the latest CE Products will be featured during this show, ranging from categories such as home entertainment, mobile solutions, software application, automotive and storage solutions, to name a few. TechZones Industrial Design will also be promoting some new environmentally-friendly concepts and applications for green technology-driven design, home safety and security, 3G telecommunications, and e-commerce.

Here’s the necessary info:

SINOCES China International Consumer Electronics Show

Venue: Qingdao International Convention Center, Qingdao China
Date: July 09–12, 2009
Organizer: China International Consumer Electronics Show organizing committee
Tel: +86 532 8197 8683

In case you don’t know the geography of China very well, let me just say that it can be a little nerve-racking for newbies, but with good planning you’ll do fine. Beijing travelers can take the overnight train from Beijing Railway Station to Qingdao and arrive around 07:30 the following day, while Shanghai travelers might want to fly from Shanghai Hongqiao Airport, since the ride will be less than 2 hours by plane, but considerably longer by train.

Now, I could show you a picture of people browsing aisles upon aisles of electronics, or I could give you a big panoramic shot of the front entrance of the exhibit hall… but I thought I would throw something in that would make any doubts about visiting Qingdao melt away… and it would probably be worth mentioning that Qingdao is the country’s most famed spot for beer production as well. Hey, who said it had to be all about work and no play, right?

As China continues to learn its new role as a world player, watch for events like these that are portals into the realm of electronics design and development in Asia. Sometimes it really pays to get in on the ground floor of something, and you could find yourself making connections with people who will shape the future of electronics in the years to come.

Sourcing Your Wholesale Operation, with China? (part 03)

If you’ve been following my posts for the last two days, you can see that there is a lot of stuff to consider when doing business with China, but it’s not really a mystery… it’s just a serious exercise in patience, common sense, and due diligence. I can’t stress the last part enough: due diligence. Many a hopeful businessperson has run away screaming, after getting sucked into the never-ending spiral of being forced to do business the Chinese way, while foolishly trying to do it the Western way.

Now, I would never tell anyone not to give it a try… after all, I live in China, and I have been doing just fine for 3 years… but the truth is that there are a lot of things that can go wrong , and it can result in some big losses for both sides if you aren’t up-to-speed with how this works. I’ll be addressing some of the more specific Chinese business strategies for the laowai (foreigner) in later posts, so keep watching.

For now, I’ll share some insights dedicated to the last item of my little list, and as you can see, this is perhaps the most important one:

- the biggest Trade Fair in China
- the Internet and you
- Networks and Connections (aka guanxi)

Industry Associations and Groups

What better way to get fully immersed in the world of wholesale and trade with the PRC, than to start a search on some of the trade associations and networks that are already out there? One caveat: most of the really useful ones are in Chinese, so unless you have a translator nearby, they won’t be of much use to you. I’ll be covering some of the English-based sites that you can peruse on your own, in order to give you a good starting point.

Aside from having some good guanxi (the impossible-to-define word for ‘relationships’) there are some great ways to get to know who’s who on the scene, aside from just randomly starting a search on Google. Looking for these can be like hunting for a needle in a haystack, and since this is the Top10 Wholesaler Blog I figured I’d save you a little time by letting you in on a few of them below… my own personal top ten:

- ShanghaiDaily

- China Economic Review

- PKF International “Doing Business In China” Guide

- DiligenceChina

- chinaSMACK

- Stylites in Beijing

- Meshing Consultancy Service Co., Ltd

- ChinaSOLVED

- Go East – Outsourcing to China

- Global Sourcing Council

Do you notice a pattern here? That’s right, there isn’t any. In order to make the most of your attempts to build connections and learn how things flow in China, you must become a bit of a ‘China expert’, and that’s the awful truth. Besides having a trusted counterpart to handle things for you, there is no substitute for holding the cards yourself. Take some time to explore these sites, and make sure to take some notes as you begin building your database of tips to help you along the way. I’ll be here to lend a hand, so don’t hesitate to comment!

Sourcing Your Wholesale Operation, with China? (part 02)

In yesterday’s blog post, I touched upon some of the important details about setting up your wholesale connections in China, by making use of the amazing Canton Trade Fair. Of course, there’s more than one way to get yourself up and running in the race to buy/sell goods, and I hope to shed some light upon the darker mysteries surrounding your interest in making a first-time connection with China.

Since we’ve already covered the first point on my list, now it’s time to do what some of us do best… and surf the net for a little while!

- the biggest Trade Fair in China
- the Internet and you
- Networks and Connections (aka guanxi)

Using B2B Websites and Search Engines

Everybody in the industry who knows anything about trade with China is using at least a few of the online resources available to people who want to buy from manufacturers and distributors all around the world. Trouble is, some of the big ones have become so bloated — or rife with scams — that a decline in quality has become apparent to many unhappy users. Take industry giant Alibaba.com for example; this is a company that was hailed as a leading mover and shaker during China’s ‘miraculous’ years, but now has become the target of some rather unscrupulous con artists looking to make a quick buck. Most sites offer a forum to discuss these issues (like this one) but the bottom line is: due diligence. In other words, don’t go grocery-shopping on an empty stomach, or you’ll just end up coming home with a bunch of junk food.

Had enough bad news for one day? Fortunately, there’s a lot of competition in the market, and with the ever-tightening noose around the necks of manufacturers during a global financial downturn, it’s actually getting easier to point out some of the bad guys, as competitors and partners alike are reaching a form of solidarity amidst the peril.

If you want to hit the ground running, try a search engine like our very own www.toptenwholesale.com for a start. Other resources include China’s BAIDU, and of course the venerable Google. Try a little variety in your search term, to get as many relevant leads as possible. Also keep in mind that pay-per-click advertising is still pretty new tech in China (not for long) so looking for those little ads on the sidebar won’t help you as much when sniffing around the Chinese sites. Since Google is the current champ in the search game, try plugging these in to find some additional leads…
- made-in-China
- globalsources
- tradekey
…and see what happens. Grab another cup of coffee, and prepare to spend a little time investigating the possibilities. After you’ve looked at everything the Internet has to offer about search, get ready for tomorrow’s blog… where I will cover some basic things that everyone in the wholesale and retail business should know about making connections and establishing relationships with China.