4 ways U.S. companies import from Chinaericvreenen
1. General import and export companies are traditional, mostly are small or home-based enterprises, size : 1-5 people, the feature of their trade opportunities is to make good omissions and deficiencies and make small profits from the gag. They often obtain free information through non-profit organizations such as foreign business organizations, and obtain customer resources through participating in the Canton Fair, Toy Fair, Houseware Fair and Hardware Fair to open up channels.
2. China Import and Export Company is an extension of the restaurant industry and groceries industry. The major customers are Chinese and Chinese restaurants, most products are dry goods, spices, daily necessities and other supplies ect. In recent years, the business of China Import and Export Company has also expanded to the industries as handicrafts, Chinese-style furniture and bookstores. These companies are the result of painstaking efforts by overseas Chinese over the years. Their feature are small scale and pool. Carton fairs and friends help laid the foundation for customer communication for its initial business.
3. US medium-sized manufacturers, large and medium-sized retailer traded by agents, It is the main way of China’s exports to the United States. These enterprises, which have a certain strength and focus on the United States, do not set up overseas import companies themselves. Instead, they purchase from China in the form of agents of trading companies in Hong Kong, Macao, Taiwan and the U.S. East-West Port Trading Company. According to the requirements of US customers, these trading companies use their own design and technology advantages as well as customer resources in contact with more than a thousand manufacturers all over China. With the help of processing trade (design, samples, incoming materials, packaging design) and product quality supervision , Delivery of goods, bank checkout and other service advantages for all types of enterprises in China set up an export channel. Most of the U.S. companies that use this way are medium-sized manufacturers, trade wholesalers, and giant retail chains of the scale such as Walgreens and ACE tools. American enterprises are characterized by the use of Hong Kong, Maucao and Taiwan enterprises across the Taiwan Strait and international trade operations experience, and its continuous tracking of the needs of the United States market and convenient and flexible offshore financial services system to complete imports from China.
For example, a trading company in California has 25 trading and design personnel in Hong Kong. In China, 250 personnel have established supply operations with nearly 2,000 manufacturers. According to the specific requirements of US customers, the company tailors the principles to the Chinese market On the organization of sources, to help US customers for product quality supervision, bank settlement and shipping business. the prospects are very optimistic. In addition, the OEM (original commission processing and manufacturing), ODM (original commissioned by the design and manufacture) suppliers has become part of China’s machinery manufacturing trade.
4. Large-scale chain retail and manufacturing companies set up purchasing department in China, the procurement company. With reduction of restrictions for foreign trade and business enterprises after joining the WTO, It will be one of the mainstream of my product exports. Through some ways, they set up purchasing department in our country and determined procurement plans in China according to the cross-border chain sales arrangements. The main feature of this way: a large number of orders, more stable, but the price pressure is lower, the style and packaging of goods are updated more often. Such as the one of the top 500 companies ITT Chicago valve manufacturing company’s cast iron parts, is purchased by its import department in China through contact Shenyang, Dalian, southern Jiangsu and other nearly 10 cast iron plants. Our enterprises should pay attention to the first and second ways, which are traditionally used by import and export companies in China. Due to the limitation of professional quality of such importers and exporters, the slow market demand, the small-scale advantages and the high transaction costs, they are gradually being replaced by the third and fourth ways. Specific trading procedures often have payment methods, transactions are not standardized phenomenon. Therefore, it is suggested that domestic enterprises should raise their awareness of risk when they choose to export in one or two types of ways, clarify the form of arbitration in the contract, and adopt the method of payment by letter of credit.
The third and fourth ways are trade patterns that have been developed in recent years and have become the main means of China’s export trade now. It is suggested that all relevant domestic enterprises make full use of this route to expand exports so that our country’s exports can more effectively target the aesthetic standards of American consumers and enter the mainstream sales market in the United States. Our enterprises can hold a professional exposition to contact the merchants in US, but also contact these companies in the country’s branches and agents. In short, all kinds of companies should select suitable ways and formulate their export strategies in light of the current characteristics of the U.S. goods imported from China, the scale of the Company, the operating conditions and the status in the complex and ever-changing market.
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