December 25, 2008

Making Business in China

There are two phrases that we must take into consideration to do business in China:

  1. China is an intermediaries' country
  2. In China, everything is negotiable
Nowadays, the "chinese price" has become something comparable to the "lowest price available", it is conventional to think that companies can move any kind of work to China and take advantage of huge savings.

In China, business aren't conducted as in USA, Brazil or Germany, where you can find their products through Internet with a certain amount of thruth that they will be what you're searching for and it's less likely that the company is a fraud or doesn't exist.

China, with an uncontrolable increase of businesses and investments, has serious problems to control through the justice agencies frauds of any kind, it is so that electronic transactions with credit cards are highly restricted, specially at international level.


There are many stories of people that have seen videos, brochures and presentations of factories, but when they're checked out they aren't so, doesn't exist or are just the cell phone number of a fisher in troubled waters.


Serious chinese merchants work in three levels of quality: low, medium and high. Products manufactured for USA, Europe, Australia and similar markets are made at the high quality level, for Latin America are usually made at medium level and low quality level for Africa and other countries. This is the common denominator, you must negotiate the quality of your product to avoid annoying surprises at the time of marketing your product. That is why it's recommended to have an inspector in China that allows you to check your products: colors, quantities, quality, in order to pressure the manufacturer to make the product in the terms agreed.


You can sign an agreement, but the execution of the contractual obligations is hard and late in China, often times, it doesn't have a future. It happens a lot with that the intellectual, industrial and property rights and breach of contract claims doesn't prosper.


So, to whom should I buy?. It's a good question, amongst many attractive and interesting offers is not easy to decide. It is important to note that the price offered to you is not only competitive but similar in price, prices too low can be traps for those who are not very observant. Not only your money could be taken away, you can also be a victim of fraud on the quality and/or quantity, or your products may actually be going to produce as requested but not in the time period agreed upon. You may receive your goods after 6 months of payment, while the company works with your money.


We recommend simply assessing how much confidence can you put on that company, if you have representation in their country and if they have a very competitive price. Once you have entered the Chinese market, you will have plenty of time to investigate further, you may be buying from an intermediary but if the price is good and the negotiation conditions are safe, it is perfectly feasible to do so.


It is important that you have a serious contact person, that allows you to know the status of your investment in both production and transportation of it, since your safety is the most important thing in your business.

December 24, 2008

Importing Chinese Electronics

The chinese economy has been always considered a sleeping dragon. In the past decades, China had never actively participated in the global trading. Nowadays, chinese electronic industry is quickly gaining momentum. Electronics importers are sponsoring the chinese MP3 players, digital cameras and other consumer electronics and even the local consumers are taking notice of the chinese electronics.

Electronics manufacturing is the biggest part of China's manufacturing industry. Even if the chinese electronics manufacturers are not identified as having the best quality or adhering to the world's quality standards, it is undeniable that most electronics importers are looking to do business with chinese manufacturers. There are a lot of reasons why the chinese digital cameras, camcorders, MP3 & MP4 players and other electronic products are so popular.

The most atractive quality of these products is their affordability. It's a fact that chinese merchandise have basically lower prices than similar products of another origin. These electronic products doesn't necessarily have popular and extensively trusted brand names. The merchandise is also at a lower quality standard compared with the electronic products of the flagship brands of Japan, USA or Germany. 

However, electronics importing transactions are very popular amongst importers. This is due to the big revenues generated by these transactions. Importing electronics products from China allows importers to distribute products in almost every market at low prices. In the long term, many consumers won't care if their digital camera, MP4 player or any other electronic gadget is manufactured in China because chinese manufacturers are starting now to level up the quality of their electronic merchandise.

Regarding complaints about the low quality standards of the chinese electronics, currently, there are local and foreign quality control agencies that work to help reducing and preventing the production of sub-standard quality products and brand-name knock-offs. Chinese manufacturers are working to raise their operation standards to make sure their products have the qualities to compete head to head with other products globally.

Resuming, the chinese electronics industry is thriving. The country is starting to recognize the potential and promising future of their electronic products, and you can be assured that the quality is quickly and steadily improving while maintaining the lower costs of the bunch.

Introduction

Born as a Venezuelan-Chinese alliance, Gabel Corp has been sourcing chinese consumer electronics for the Venezuelan market since 2001. 

Having been successful in our own home, we decided it was time to open up our market opportunities. eCRATER has given us the opportunity to go global and we will be adding more consumer electronics everyday! 

We offer you a wide-selection of consumer electronic products. This is your best opportunity to directly access the Chinese electronics market. We ship direct from China to major destinations and all the products we sell come with a minimum one-year warranty.

We will be filling up our product categories with excellent and affordable consumer electronics, so stay tuned!