This is the first article in the series “How to import from China, step by step”. In this article I would like to show you how to reasonably get down to importing. Importing from China isn't difficult, although you should have a sound approach towards that matter. Below you will find some practival advice on how to start. You'll find out about the next steps into the fascinating world of import from the upcoming articles.

What do I actually need?
If you've already made up your mind on importing, than you should clearly define what would you like to import. I suggest following two criterias. First of all: try to concentrate on goods that you have some kind of knowledge about. If you're an electronics engineer, think twice before importing construction materials. This doesn't mean that a person, who doesn't have any idea on hairdressing goods and accesories, won't be able to sell them succesfully. It just might be more difficult, because your competition will have an advantage. The second criteria would be choosing the product lines which are the most up to date and involve cutting edge technologies. It's good to find an interesting product which is relatively "new" when it comes to features like shape or functionality. Those type of products are especialy recommended to importers with shallow pockets.

A novelty product in most cases will give you a starting advantage againt competitors who posses more financial resources. On the other hand, you should keep in mind that even if you manage to introduce a new product, within a couple of months the competition will also start importing it, and after some time the product itself won't be perceived as "new". If that should happen, you ought to find a different product or... an investor.

How much do I need to start?
This is one of the most common questions asked by BigChina.eu users. The answer is not that simple as the required capital varies depending on what you want to import and how developed is the market share of that product. I.e., if you'd like to import mp3 players, you'd have to face heavy competition which you could tackle with low price or by promoting a brand. Both means are expensive. A succesul brand advertising campaign stands for at least 100 000 euro. Besides that, such a campaign has to repeated every now and then. If you don't posses such financial resources and decide on going on a price war than you'd still need to have a fat wallet. Low sale prices in your country come from low purchase prices in China and you can't count on the latter if you don't buy in thousands. And thousands of pieces is what the competition buys every time.

On the other hand, if you manage to find a product which is new yet cheap and which no one is selling in your country yet, than you can start importing it even you have as little as 2000 euro. At rapid sales and a 120% profit margin, your next shippment from China will be worth 4000 euro.

How do I find the right manufacturer?
Let's assume that you've already looked through the contents of BigChina.eu and found the product, which you'd like to import. It turnes out that the product is manufatured by 4 factories. It's good to read each of the profiles, paying attention to things like: placement on the market, number of employees (large companies tend to boast about their employment), approach to quality matters, activity range, attitude towards customer service, lenght of the profile (a detailed and thorough profile might suggest that the company's customer service department will also do such a job).

You might also want to look up the company on the Internet i.e. google it's name to see their website or information about it on various American or West European b2b sites. You can also order us to investigate the company in China for a nominal fee.

It's always good to find different potential manufacturers. It will give you a better idea of the market, especialy when it comes to prices. The Chinese in most cases will give you a price quote when you ask them for it. The price of the product depends on:

- factory size (the bigger, the older and more renowned the factory is, the prices are higher)
- type of order (a single order or a long-term cooperation)

- amount ordered (this factor has the strongest impact on the price: when you order 100 pcs. the price is a lot different that when you order 100 000 pcs.)

- type of purchaser (the suppliers tend to have a different approach towards small companies than towards the large ones)

How to initiate contact with a factory?
If you're proficient in English, it's good to call the factory to express your interest in their offer and notify that further contact will be carried out via e-mail. A telephone established contact is less anonymous. If you want to engage sufficient financial resources (i.e. hundreds of thousands) you will need to go to China personaly or send a trustworthy delegation. This is a clear sign to the manufacturer that you are serious about establishing a cooperation and that you can afford a visit in a far away country. From the point of view of a European importer the most important aspect is the opportunity to verify the manufacturer and his surroundings. Large scale operations will be subject of separate articles. This time we will focus on smaller import activities. In this case, most business contacts will be done through the Interner. You should start by writing an e-mail. You'll find out how to do it in the next article.