Why Buy From China?
Not only do Chinese factories make a vast variety of products at very low cost, but many of the world’s major manufacturers are moving more and more of their manufacturing to China.
China has a number of major advantages over most western countries. These all help to minimise the operational costs for Chinese factories:
Low human resources costs because of:
- Competitive job market
- Lower living costs – food, accommodation, travel, etc
- Lower on-costs – superannuation, sickies, leave, etc
- No bureaucratic red tape
- Lower corporate taxes
- Cheap real estate and low construction costs
There are basically 2 ways to buy from China.The first is through middlemen normally based in Hong Kong or Taiwan, although we are now seeing an increase of mainland-based middlemen as the English language is becoming more widespread.
The second way to buy from China is direct from the manufacturer. Normally if you deal through a middleman he will control the whole process, including price negotiation, Very often the price you will pay may look good if you compare it to buying from a wholesaler within Australia, but it may be many times the price that it cost him from the manufacturer.
You can certainly save money even by buying from middlemen, but the real savings come through buying from the source – the manufacturer/factory in China.
Most Chinese suppliers are actively working towards exporting to western markets, especially USA and Australia, and receive Chinese government incentives in terms of tax breaks to do so.
Chinese suppliers are totally open-minded about which nationalities they are doing business with – as long as there is money in it!
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