How to run a business with China during a crisis?

Now you can feel the decrease of the economy around the world. The rate of purchase power also dropped and the demand for products, too. In such situations, it is easy to panic and lose control. It becomes difficult to make business since any efforts will have little efficiency.

People become more apathetic and lose motivation to work. However, in reality, nothing changes dramatically, just increases demand for other types of products. Everything continues to be produced in China but at new prices.

The only change can be in the error rate. It can increase. However, this happens only if you are working with not experienced sourcing company or agency. Our company has been working in this sphere for more than 10 years. We don’t guarantee a 0% error during the importation. But if you use our service the risk rate drops dramatically. Because we have relations with hundreds of factories and shipping organizations. Our customers save their budget on product prices, shipping costs, taxes, and others.

What is the main advice for your anti-crisis business with China?

1.    Create an anti-crisis product line.

Demand never dies, just some parameters change. People will try to buy cheaper products, so the main focus should be on making the goods affordable.

For example, you can optimize expenses on packaging, accessories, delivery, etc. Decomposition can help to manage the price of products; you can replace elements of products.

2.    Don’t lose any client

The main aim during the crisis should be not to lose main clients that purchase regularly. Discuss with your supplier the terms of cooperation and try to make compromises. Make individual decisions for each client, sometimes you may need to work at a loss to keep your sales. Setting lower marginal profit can help to increase the overall profit. But sometimes lower prices can’t work bring profit, then you should make combinations of two or three products. Then sell as one product. For example, combine shirts and t-shirts.

3.    Consider new markets

During the economic changes, one market shrinks appear other new niches. For example, personal safety products were in trend during the whole past year. In business with China, it is never late to discover a new business niche and begin. You can enter the growing sphere that will steadily bring you profit.

For some people entering other countries can be the solution. We are in the era of the Internet and e-commerce. No one stops you from working with other neighboring countries. Markets of other countries have different requirements. Maybe you will need to change the logo, packaging, or quality rate. But Chinese manufacturers can do all of that. You should just stop thinking about the impossibility of making money and work.

However, before entering the market of another country you may need to consult with specialists that have experience in importation. They know all the details and pitfalls of importation. Our experts are ready to help you in the importation of various products from China.

For further information, please, contact us.