Derrick
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- Joined
- Nov 22, 2010
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I don’t know how many of my readers have started their own business of some kind, but there is one thing you will notice when you go online with your business and that is how many Chinese manufacturers contact you directly. This is not the normal spam and phishing emails I am talking about. These are legitimate manufacturers and small distributors in the IT industry looking for footholds in world business.
These people have people who actively seek out and engage possible trade partners who can help their business. It seems as if the secret is volume from lots of smaller companies rather than one big retail outlet.
I believe this strategy has great value to these businesses. It is far easier to setup production in China than many places elsewhere on the planet. It makes sense that they throw their distribution net as wide as possible to increase initial revenue which allows them to grow quicker. Please note this is just my theory as I do not have figures apart from those we know of in general relating to China’s economic growth in excess of 10% per annum. It is phenomenal and human rights issues aside it does seem to make sense to want to trade with the Chinese. You would be stupid not to when presented with an opportunity.
The problem is we don’t easily trust digital points of first contact. What we should realise is that there are countries where the web is like air. It is all around and people have become much less afronted when somebody uses the web instead of a letter or telephone to contact them with important business. One has to be very careful of course in checking out the opportunities though. There are many places online showing what to look out for in terms of suspicious Chinese business practices. I believe if one is careful and has the capital that there is huge value to be had from cooperating with Chinese manufacturers and suppliers. Bigger local distributors of technology are already doing this and the scope for competition is wide open if somebody finds the right deals even outside of the technology sphere.
These people have people who actively seek out and engage possible trade partners who can help their business. It seems as if the secret is volume from lots of smaller companies rather than one big retail outlet.
I believe this strategy has great value to these businesses. It is far easier to setup production in China than many places elsewhere on the planet. It makes sense that they throw their distribution net as wide as possible to increase initial revenue which allows them to grow quicker. Please note this is just my theory as I do not have figures apart from those we know of in general relating to China’s economic growth in excess of 10% per annum. It is phenomenal and human rights issues aside it does seem to make sense to want to trade with the Chinese. You would be stupid not to when presented with an opportunity.
The problem is we don’t easily trust digital points of first contact. What we should realise is that there are countries where the web is like air. It is all around and people have become much less afronted when somebody uses the web instead of a letter or telephone to contact them with important business. One has to be very careful of course in checking out the opportunities though. There are many places online showing what to look out for in terms of suspicious Chinese business practices. I believe if one is careful and has the capital that there is huge value to be had from cooperating with Chinese manufacturers and suppliers. Bigger local distributors of technology are already doing this and the scope for competition is wide open if somebody finds the right deals even outside of the technology sphere.