Main Obstacles trading with China

• Financially difficult
• Different culture of trading and sale
• Language barrier
• Unfamiliarity with the Environment and Market
• MOQ - Minimum Order Quantity
• Differentiation difficulty between Manufacturer and a Reseller/ Middleman
• More sophisticated practices of scams and con-mans in China
• Misconceptions about the current state of Chinese trade
• Absence of personal experience
• Guanxi - Connections are everything

 

Main Activities and Objectives
Offered Service

Establishment of a Company and Legal Advice Acquisition of Certificates in China and other Asian countries Shipping and Import assistance from China and other Asian coutries Export security from China and other Asian countries Verification of Chinese and other Asian companies Control of cargo loading in China and other Asian countries Inspection and screening of manufacturers in China Transport and Coverage of cargo from China and Asia Ensuring participation in distinguished and reputable trade fairs and conferences in China and Asia Ensuring participation in trade fairs in Europe Translation and Interpretation of and from Mandarin Technological transfer of European technologies into China and Asia or conversely Marketing Guidance in Chinese and Asian markets

Seeking of complementary trade partners in China and Asia Seeking of Venture Capitals and Investors in China and Asia Classification of your product, project, patent, investment plan into the WBTID - World Business Trade Investment Database Professional advice and individual consultations Submission of Projects Superlegalization of Documents Chinese VISA acquirement Legal Services Advertising and PR in Chineses News Outlets Preparation and organization of a trade missions to China and Asia Arranging flights from and to Asia Mediation of travel and accident insurance to China and Asian countries Other Services based upon request of partners

 

Minimization of Import Risks

• Chinese supplier / manufacturer inspection
• Purchase and inspection of functional samples of the goods you buy
• Requesting references, especially from the EU
• Agreement of the communication language in advance
• Finding out the credit rating of Chinese companies
  
• Verification of import conditions into the EU (certificates, etc.)
• Production quality control
• Requesting the necessary documents and business licenses
• Agreement of contractual conditions
• Preparation of contracts with local lawyers
• Price conditions and payments (Letter of Credit, Advances, Customs, Duty taxes and VAT)
• Conditions of complaints
• Inspection of goods before embarkation to transport (Ship, Air, Rail or combined)

 

Theory Vs. The Reality of Shopping on Chinese market

Search for Chinese partners via the Internet

• alibaba.com - Biggest Shopping Portal
• globalsources.com - Reasonable offers
• china.cn - Ministry of Commerce of People's Republic of China
• taobao.com - 500 Million of registered users with approximately 8 Million daily visitors. 800 Million of products on offer, with 500.000 sales each minute ( Price Waterhouse Coopers - February 2013)

Recommended Purchase strategy and procedure

1. Exact idea of the market and transaction
2. Use of an Intermediary
3. Trade fair visit in China
4. Process technicalities and Due Diligence
5. Realization of Transaction

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First Steps necessary for export into China and other Asian countries

Before starting any business activities in Asia, we recommend investing in an in depth market research and also in verifying potential business partners. However, there is no one-size-fits-all guide.

You need to ask yourself these 7 basic questions and realistically evaluate the chances and competitiveness of a product or service in the market in China, Hong Kong or anywhere else in Asia:

 

1. Is the product unique?
   We take into account the quality, added value, brand history, production secrets, tradition, technology, and the like
   
   
2. Is it in compliance with Chinese Standards
   Example - The mandatory CCC certification of quality and safety (China Compuslory Certificate), which is issued by the Certification and Accreditation Administration of China. More information on certification and standardization is available at www.cnca.gov.cn
   
   
3. Is the price of the product competetive?
   This will be shown to us by the price calculation after taking into account the price for transport, insurance, customs duties and VAT on importation, as well as the soon to be mentioned marketing costs
   
   
4. What and where will be the place of sale?
   Should you prioritize large cities or smaller cities in inland China?
   Only top-quality products, that can withstand tough price competition, can be exported to developed areas. In subsequent export activities, it is necessary to offer technically advanced goods and be flexible regarding changes in the products offered
   
   
5. What are the best suitable distribution channels?
   Which distribution channel we choose and how do we get into it
   
   
6. How much of the budget should I allocate towards marketing?
   It is not possible to enter the Chinese market without sufficient budget allocation towards marketing. It is necessary to set aside funds to participate in the many different tradefairs (tickets, accommodation, stand rental, transport of samples, translation of advertising and promotional materials into Mandarin, interpretation costs, etc.)
   
   
7. What is the optimal way of entry into the Chinese market?
   The form of entry into the Chinese market can be direct or indirect and depends on the size of the budget
   
   

 

 

 

SACC is a proud partner of the AEACCIC - Association of Euro-Asian Chambers of Commerce, Institutions and Companies

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