Basic Guide to Importing From China

Importing From China
Wensheng Li, MBA, CPSM, CQA
Andrew Rizzo
8/28/2009
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Agenda
Opportunities and Challenges
How to Get Started
Finding Reliable Suppliers
Strengthening the Supplier Relationship
Minimizing risk
Q & A
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Opportunities & Challenges
The Success Stories
iPhone & iPod
Nike
Laptops and more
The Horror Stories
Toys with lead paint
Unsafe tires
Tainted pet food, toothpaste …
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Getting Started
Self assessment
Budget
Import volume projections
International trade expertise
Language skills
Product assessment
Get help!
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Product Assessment
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Critical
Strategic
Risk
Non-critical
Leverage
Value

What Strategy to Take?
Indirect
Trading company/Intermediary
Direct
Deal with factory directly
Hybrid
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Direct vs. Indirect
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Direct
Partnership
Find substitution
Risk
Indirect / Direct
Indirect
Value

Identify Suppliers
Alibaba.com, Globalsources.com, …
Trade shows
Industry clusters
Referrals & contacts
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Four Types of Suppliers
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Price
Foreign invested
Trading company
Domestic with int’l experience
Domestic with
no int’l experience

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Industry Clusters
Beijing-TianjingHebei Region
Yangzi River Delta
1% vs. 18.8%
Pearl River Delta
0.4% vs. 10.2%
National Bureau of Statistics 2006

Evaluate Suppliers
Past performance
Capacity
Time in business
Financial factors
Service
Price (total cost analysis)
International experience (CPSIA, ROHS)
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Total Cost Analysis
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Minimize Your Risk
Develop a good supplier relationship
Quality control
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A Good Supplier Relationshipis an Investment in your Success
Face to face meetings
Top management involvement
Timely payment
Incentive program
Get feedback from your supplier
Educate your supplier
Learn to say ‘nihao’
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Deal With Quality
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Detailed specifications
Production sample
Packaging details
Contract
Foot on factory floor
Inline inspection
Subcontracting??
3 Party Quality Control
Inspection
Cha Bu Duo??

Completing The Transaction
Freight
Payment
Customs clearance
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Conclusion
It’s easy to find a supplier but it takes effort to find a good supplier.
Do your home work and plan well.
There is no substitution for face to face meeting.
Quality is ultimately buyers’ responsibility.
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谢谢!
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Contact: Wensheng Li
www.linkedin.com/in/wenshengli