Advantages of buying from within China

Very often, companies that decide start selling in China were previously importing components or materials from China.

When we take the step of entering China to sell offline, it is necessary to create our own branch to be able to operate in this country. One of the positive collateral effects is that this gives us the option of replacing our former imports from China by local purchases as a Chinese company.

In this blog, we introduce the economic advantage this means compared with purchasing as an overseas company.

This advantage is mainly due to three reasons:

We pass to communicate with our suppliers in their own language.

They stop seeing us as a Western company that imports their products and we become one more Chinese customer. We have the same access to buy from one Chinese supplier or another. Normally we will have our own Chinese staff which will facilitate communication especially if our interlocutor lacks staff who speak English.

Not all Chinese companies are willing to export.

Very often, and especially in small size companies, the supplier of the material we want is using an agency to export their products and thus getting rid of this cumbersome bureaucratic process. If we buy from outside, we will only be able to access those agencies or suppliers that have their own export team. In either case, the price becomes more expensive compared to simply buying within China.

Control from local authorities.

If we are exporting from China we are exposed to a more exhaustive control by the Chinese authorities, both in terms of knowing what we are exporting and that we do it well, and in terms of taxes. If this control is being born by our supplier, he will apply an increase in the price of products that I can buy cheaper on Chinese soil.

From Wandermate we are going to take charge of exploiting to the maximum the opportunities that arise in the project that we start together. Although these exports might not be the main objective of our mission, we are aware that any help is welcome and we must take advantage of all the synergies that appear along the way.

In another blog we will discuss how the export process is carried out with customs to familiarize ourselves with the process, the documents that apply and how to resolve difficulties that you may encounter.