In part 1 of this blog series, we gave you a glimpse behind the scenes of our sourcing process. Would you like to source parts and LCDs in China yourself? In this article, we give you four tips for successful sourcing in Shenzhen. Read and enjoy!
There are many snags to sourcing the best quality. In the last blog you were able to read about our sourcing manager Wen’s daily search for the best parts and why it is so important to always check the parts. These are the most important tips for entering the electronics market in Shenzhen yourself:
Make sure you speak Chinese and are familiar with the culture
First of all, most Chinese speak little or no English. So being able to speak Mandarin or Cantonese is a must before your visit the electronics market in Shenzhen. It is much appreciated and makes making contact easier.
The Chinese have their own (business) customs, so it is important to be familiar with these and to apply them when you do business in China. The public holidays in China differ from those in the rest of the world. For instance, Chinese New Year is on 25 January 2020. Around this time, the Chinese market stagnates for about a month and almost everyone travels to their home town to spend time with relatives. Entrepreneurs respond to this by purchasing larger volumes one or two months before the holidays, so they have enough in stock. As a result of this, prices often rise in November/December and continue to be higher up to until March. The market often stabilises in March and the prices drop.
Take time to build up stock
It is not only important to build up stock around the time of public holidays. Unfortunately, our sourcing manager is often faced with delivery times or delivery conditions not being met. This is because Chinese dealers would rather tell you what you want to hear out of courtesy than tell you the truth. For this reason, buying small amounts is not recommended because it means you get through your stock too quickly and have less time to select new batches.
Check your delivery for quality!
As a tourist on holiday abroad, you often pay the highest price at markets, for instance. The same applies in the electronics market in China. As a foreigner, you often pay more for parts. If you are offered a good deal, chances are you’ll get a mixed batch. This means that different qualities are mixed, even though you only ordered A quality. For instance, say you order 100 A quality Refurbished screens. Chances are you’ll get 70 A quality LCDs. The other 30 will be B, or even C quality. Checking the screens is time-consuming but essential to filtering the right quality from a delivery. We recommend creating a standard way of working and place in which to do this. It’s very hard to check all the screens well at the electronics market because of the light and it being so busy there. If you would like to know more about the various quality gradations on the Chinese market, read our blog.
Make sure you have one regular supplier and build up a long-term business relationship
In China, people attach great value to building up a personal and long-term business relationship. We recommend asking detailed questions about the production or stock during your contact with a dealer at the market. That way, you will be able to distinguish between a reseller and a manufacturer. Our sourcing manager Wen also discovered that this way it is easier to make agreements concerning the quality requirements of LCDs and small parts that you as a customer demand. This enables you to offer your customers consistent quality and reduces the chance of mixed batches.
If it’s not possible for you to follow-up on these tips then we will, of course, source for you and you can visit our online store for all you need.
If you have any other good tips for successful sourcing in China, or if you have any questions, let us know in the comments below.
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