The basic principle behind importing is that somebody, somewhere out there, does something better at a cheaper cost than we can do it here. As a business person, your aim is to make profit and this you can only achieve by lowering your operation costs in order to increase you profit margins as well as maintain a competitive edge in your area of business. With the opening up of China’s economy, and taking note of the fact that china is now the second most powerful economic broker in the world, as a business person, it makes perfect sense to do business with this country. In this article, we look at the 5 reasons why any business should engage in import business from China.
#1 Competitive Pricing
Armed with a lower exchange rate in its currency as well as cheap labor, China is capable of producing products at very low costs. As a result, the selling prices of most of China’s products leave you the importer with larger profit margins compared to what you would have made from other suppliers. As a matter of fact, a study in Bloomberg Business Week article indicated that china produced products that were 22 percent cheaper that U.S. produced products. With competitive pricing you stand to stay ahead of your competitors by being the one with the most reasonable prices to your customers.
#2 Lower your operating Costs
Importing products from China provides a whole new way of doing business with more cost cutting benefits. Thanks to mass-manufacturing, china is capable of ensuring that even after factoring in shipping and import duties, you overheads still remain much less than you would have had if you had sought such supplies from your local area. Overhead costs can also be achieved whereby instead of having your orders shipped to you then having to ship them to your customers, the supplier does a direct shipping to the customer’s address at a fee which will obviously be lower than what you would have spent locally.
Other than their industrial nature, the Chinese are also well known for their diligence. This is because most of them make good of what they have by staying motivated and working hard. Therefore, if you import from china, you can be assured of the immediate response to your requests and your shipment will be sent to you in the shortest time possible. In short, once you identify the right supplier, chances of getting disappointed are very minimal.
#4 Exploding Ecommerce
China is on course to being the world’s largest online shopping market. As of mid-2012, China’s total transactional value was USD 319 billion (about $40,000 spent per second). It is now predicted that China’s ecommerce will hit USD 4.89 trillion by 2020. As a business person, you want to align your business with this country in order to get a piece of this vast opportunity.
#5 Expansion opportunities
What a better way to commence import business from China than by having your goods warehoused in Hong Kong, the preferred international trade hub. Besides saving time and money in terms of pricey courier services and longer shipping times, you get more time to look for expansion opportunities. Additionally, having your products in Hong Kong means faster shipping to nearby destinations like Taiwan, Japan, Singapore and Korea. This therefore opens your business to move into Asia Pacific for further business opportunities.