While personal relationships are key to long-term success in China, most experts agree that meeting with possible suppliers is by no means the first step when importing from China. In this interview, we asked the two founders of the Swedish company Migyston Group AB, Erik and David Steijner, when is the best time to visit their supplier(s) in China.
Erik and David, what does your company do and how did you get started?
Migyston Group AB is a startup founded in 2012 together with our Chinese partner, Yang Zhang, whom we met at Karlstad Business School, where all three of us were studying for our MBA.
We took the opportunity to establish an international network in order to help those who wanted to trade or relocate their production to China. Later we also started working with the public sector. In particular, we specialize in connecting Chinese and Swedish public organizations. In recent years we have also started to export to China, especially food and cellulose. In short, our interests are quite varied.
Suppose you want to import LED lamps from China. How should I prepare before contacting possible suppliers?
First of all, you need to create a list of product specifications that clearly defines materials, components, dimensions, weight, colors, other physical characteristics (which will vary depending on the product), quality standards, certification standards, packaging and packaging for transport.
Then you have to contact the possible suppliers to understand if they have the capacity to make the product you are interested in or not. Communicating clearly is, perhaps, the most difficult problem to solve when importing from China.
In your opinion, what are the key factors to understand if a supplier is qualified to make the product you want to import?
First of all, we need to make sure that the “supplier” we are dealing with corresponds to a company duly registered in China. It is therefore necessary to check the legal status of the company, the bank account and the certificates of the products owned. Payment fraud (but not only that) is very common when importing from China; You must therefore check that the supplier is honest!
Do you think it’s important to visit your chosen supplier before placing your order?
Yes. Normally, before placing the order, we offer our customers the opportunity to visit the production line of the manufacturing company they have chosen. During your visit it is important to spend some time with your supplier (lunches, dinners, etc.).
Although this is not an essential factor for success, we always recommend visiting the factory (as long as the order is large enough to justify the cost of a trip to China). We also recommend visiting more than one supplier.
Suppose you decide to visit some suppliers in China. What is the best way to prepare?
Because only %-10% percent of Chinese manufacturing companies that engage in exports are qualified to sell their goods in Europe or the United States. This means that finding a suitable supplier is not easy at all. While you can discard most unqualified suppliers before you visit, there’s always a chance you’ll be disappointed with a given supplier. So having a plan B is always a good idea.
Suppose you decide to visit some suppliers in China. What is the best way to prepare?
Visit the production line, not just the supplier’s sales office in Shanghai or Hong Kong. Prepare an itinerary to optimize your time (China is as large as Europe) and, unless you can speak Chinese, hire a translator.
Isn’t it more efficient to go to a trade fair if my purpose is to visit a large number of suppliers?
Yes, if you visit a trade fair like the Canton Fair or Yiwu Permanent Wholesalers’ Fairs, you will have the chance to visit a large number of suppliers without having to travel too far. The problem is that, without visiting the production line, it is difficult to really understand what kind of suppliers you are dealing with as the Chinese are masters at appearing. A trade fair is no substitute for a factory visit!
Need help importing products from China?
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