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China Sourcing, Assembly and Packaging

Beware of this very common mistake when selecting products to buy from China

“XXX famous brand is made in China. I’ll buy them in bulk from a Chinese wholesaler or factory on the cheap and get rich!”

for tax and exclusivity reasons, it is unlikely you can buy famous brands direct from the factory

buying famous brands factory direct in China. TOO GOOD TO BE TRUE!

 

At least once per week, the CSIC is contacted by a buyer that has found a price they worry is too good to be true when buying a famous brand product from China.

The desired products range from Apple computers to Segway scooters to Canon cameras to Whirlpool dishwasher…but the case is always the same- the buyer is about to fall into a scam.

Here is the reality about famous brands in China

FACT:

Even if the above products are made in China (and some aren’t), many people fail to realize that due to the tax system in China, the price of the products at wholesale and retail level is much higher than the pricing back home if you live in the USA for example.

FACT:

These global brands do an excellent job of controlling their Chinese suppliers and product which is made for export isn’t available for sale in China.  It’s silly to think that the Canon factory is going to run an extra shift to make the latest camera and sell them secretly on the internet at “factory direct prices.” In fact, when I need to buy electronics for personal use, I do it in the USA or HK, not China!

 

Why do the scam artist target small scale foreign buyers of brand name products?

Here is an excerpt from the blog post “Genuine products from China?

Most small buyers are working on tight margins and won’t due proper due diligence to verify if the supplier is legit.

Most small buyers don’t come to China or engage a 3rd party inspection agent to check the goods before the good ship out and before the final payment is made. Perhaps the buyers don’t realize it only costs a few 100 USD to have an inspection agent check the goods out.

Most small buyers have grown accustom to buying and selling online back home and falsely assume the same buyer protection is in place overseas.

Small buyers generally will not try to track down the scam artist and pay for a legal battle on a small order.

Smaller and especially new buyers, are too trusting of sellers. If the seller says they have 500 employees, the buyers take it at face value. If the seller says their standard procedure is 80% deposit and 20% at ship date, the new buyer assumes that is the norm, when 30% deposit and 70% after 3rd party inspection is very common.

 

Related Content: How to source safe in China?

(video) Negotiation, Contracts and Payments – The Ultimate Guide

What I told CNN about China sourcing

How NOT to be a test bunny for a Chinese factory

Sourcing Disaster (how to avoid it)

http://chinasourcinginfo.org/2013/02/04/i-think-something-is-wrong-with-my-supplier/

http://chinasourcinginfo.org/2012/03/23/how-can-i-tell-the-real-suppliers-from-the-fake-ones/

 

Wishing you successful China sourcing!

About the author: Mike Bellamy

Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). Author of “The Essential Reference Guide to China Sourcing” and founder of PassageMaker Sourcing Solutions.

 




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