A couple of questions about a foreign charger company’ s development prospects have been raised by a user. The content is as follows:
The user asked, “ My name is Tony. Since at present, the information is transparent, the locations of the Chinese factories and suppliers can be found by the foreign customers with ease. Thus, they should be unwilling to cooperate with the foreign trade companies. In that case, will the foreign trade company meet with an awkward and even risky situation in the future?”
We answered, “You also know, of course, that the foreign trade is undergoing a tough time. It is lying at a transitional period to the extent that many factories may not necessarily conduct better than foreign trade companies. Striving merely for the price attraction and quantity has been casting away their advantages, so the present foreign trade company shall not fall back to old practices. Therefore, not only the company but the entire industry is going to find it increasingly difficult to develop.
“Foreign trade company should retain a foothold, namely, it is to clear up how to achieve profit, how to make its place grounded in the industry and how to form a more competitive mode to sustain. For example, when it comes to your service and quality of product, the advantages should be shown up. It should have more prevailing conditions to distinguish itself from factory. Or else, the foreign trade company will never be able to keep pace with the factory.”
The user asked, “ how do you regard the core competence of foreign trade companies and merchants in Shenzhen?”
We answered, “There are many foreign trade corporations operating high-technology and novel products which are at an advantage.”
“For the charger companies like yours, maybe the products are more novelty—when the industry haven’t reached an saturation point, or appeared to be stable.” but we still should change from your position but not just compare with price and quantity only then can we keep up with the economic tendency. You can never compare the price with factory. You can cooperate with some strong factory to provide competitive price for customers which is also a survival way for foreign wall charger company.
The user asked, “If we cooperate with the charger manufacturing factories that provide foreign trade business and export business, will they add more risks to ours? Shall we just move on to the cooperation with suppliers without import rights and trade workers?”
We answered, “Yes, you said it. It is the factories without a foreign trade department that you should cooperate with, since they are very willing to work with you and overall, they also want to explore the oversea markets via foreign trade companies.
The user asked, “I have one more question. That is, when the foreign customers, who are astute with a Chinese interpreter accompanying, audit the factory and notice the differences between the company name and factory name, what do you suggest to handling this case? Thank you.”
We answered, “For this case, if your company is a foreign trade company, you should absolutely acknowledge it instead of contacting with the customers in the name of factory, because the customs today is smart about business and the information is becoming more transparent, and they will also find a translator. Thus, there’s no benefit in contacting with the customers in the name of factory and you should acquaint them with the company’s property at the very start. But you should also be aware that compared to factory, foreign trade company can do equally well as long as you demonstrate the products and services advantages to the customs. These conditions are really helpful to earn trust and long-term dependence from customs.”
“By the way, why do the foreign trade companies in Hong Kong develop better than those in Mainland China? In fact, their cooperative factories locate in Mainland China likewise. But why? It is the more careful quality monitoring, which gains foreign customers’ credence that brings in more order forms.”