There's no denying it: China is important in the electronics industry. At a global level, it exports more products than any other country and is second largest when measured by imports.
A variety of challenges, including cross-boarder documentation, licensing requirements, and regulatory compliance, makes doing business in China challenging at best. At the same time, the country remains attractive to electronics OEMs for both sourcing components and manufacturing products.
The infographic below from Amber Road outlines some of the realities. You can also download a full report from Amber Road here (registration required). First, though, let us know what you see as the biggest promises and problems associated with doing business in and with China.
We see China as critical to our success. However we struggle with the time zone, communications barriers, delays due to customs/import bureau and qaulity control. However it is still a net asset to our company.
FlyingScot,
The Chinese are changing or rapidly evolving as we speak.
The latest move of theirs is to move away from Heavily Polluting Industries towards industries which are more Skilled.
Obviously QC will improve as we go ahead.
You can find almost everything, especially in electronics, in my opinion, although there are still some problems (quality, delivery) from the other hand, to have your supplier in China is a must if you would like to keep your costs down. And in many cases you can find the same product in other markets almost 10 times up the initial price.
“delays due to customs/import bureau”
Another key to success is the “free international shipping” if you check on ebay for example only products from China offer that ability and sometimes is really crazy if you consider that orders from nearby Countries charges 15 to 50 euros to transfer 1 kg (the example is from a case within Europe).
“However we struggle with the time zone, communications barriers, delays due to customs/import bureau and qaulity control. However it is still a net asset to our company.”
@flyinscot: You're not the only one facing this. A lot of companies these days are facing the same issue and they've had to change the way they operate to cater to Chinese requirements. These include opening an office in China, hiring people who can speak a little Chinese, paying attention to Chinese norms and culture etc.
“And in many cases you can find the same product in other markets almost 10 times up the initial price”
@Nemos: Unfortunately that's no longer true. China has stepped out from being called a low-cost manufacturer to a manufacturer that can give you the product at the price you want. In other words, they can adjust their quality to match the desired quality and standards and no longer would there be everything for low cost and poor quality. It's amajor change that has taken over the years.
I think the biggest challenge doing business with China is to export to China. You definitely need a broker in China and everything needs to register through their system. Also, the information needs to match everytime and be consistent or else it will be stuck in custom
@TaimmorZ China was, is , and probaply will be always a low cost manufactor otherwise it can not stand as a competitor to the Market. You can confirm my statement just by take a small look at the ebay. Ofcourse you can find quality produts in a very good price but dont expect quality in low cost products.
No matter how proficient Chinese supplier in foreign language there is always a gap between what a native language can buy for cheaper. Also there is a huge gap in culture and social norms which will make importer from West feel uneasy when doing business in China.
I agree that Chinese products are not always of poor quality if one is ready to pay some more bucks. But then the differentiator of buying cheap product is gone as if the price goes up then Chinese products will have to compete with Western produce products. And in that quality war i think China can not win for the time being due to a stigma attached to its products.
“and probaply will be always a low cost manufactor otherwise it can not stand as a competitor to the Market.”
@Nemos: I never said that China does not manufacture low cost products anymore. What I meant was that the Chinese manufacturers were only known to be low cost manufacturers at one point. Now, they can offer you both – quality products and low cost products. This makes them more flexible for companies. Things like iPhones are being made in China but they're of really high quality and obviously not low cosst. This unique aspect of Chinese manufacturers seems interesting to me.
So we agree 🙂 , also have in mind that outsourcing products like iPHONE does not consider as “real” made in china products and we cant consider those as products from Chinese manufacturers.
I feel China's idea is to equate cost with quality. Quality stuffs are made in China at a much extra cost, its just that the low quality stuff seems to gain more ground in the marketplace.
@ TaimoorZ, You are right, I agree with you on that.
@ t.alex, I think that os one of China's secret to stay on top market.
@Nemos, I agree with you on that. The price dictates the quality in China's products.
China can manufacture according to specifications and they can also make imitations at low cost. Simply put, China will give it to you the way you want it at the price you can afford but one thing is certain, China makes both high and low quality products
@ Nemos, Concerning Iphone, China is a contract manufacturer
@FlyingScot, i would add cultural issues to your list–not to be underestimated. Definitely, to make it work you have to put the effort in.