Forum, Transport

To prove this fact, let us have a look at the statistics documents of the last largest exhibition fair which was hold in Guangzhou City – Chinese Export Commodities Fair. More than 195 thousand of businessmen – representatives of 210 countries – took part in the Fair. It is 16% more than the visiting data of the previous Canton Fair, organized during the autumn session. The total amount of the contracts having been signed during this spring session became more than 29 billions USD. These are the record results in the whole history of Guangzhou Chinese Export Commodities Fair. These are only the official data reported in the statistics documents. In spite of the recent anti-damping conflict between China and America the number of American businessmen who had visited Canton Fair last time increased more than 25%.
 
The total amount of machinery and electronics production contracts came up to the sum of 12 billions USD, that is 40.8% of the total number of the Fair contracts. Clothes production and textile production contracts made 2.74 billions USD and 2.18 billions USD, consequently. According to the number of deals and contracts, the USA and Europe took the first place of the Fair contracts.
Many Russian countries try to visit different specialized exhibitions around China. China is popular not only for its enormous world-famous exhibitions presenting Chinese manufacturers and export-import companies. There is a large number of exhibition-fairs all over the country which are not so big or famous, but specialized in a certain branch of industry. Actually, the main purpose of visiting an exhibition is to settle direct business relations and cooperation with manufacturers in China.

The increase of economics in China during the first quarter of 2006 surpassed all the experts’ expectations and results. The reason of the Chinese gross output increase is essentially foreign investments and the high increase of export. According to the data of National Statistics Department (Peking), the country gross output has increased by 9.5%, approximately up to 379 billions USD,  that is 9% more than an average prognosis of the country market system. The inflation level during the first quarter of 2006 totally counted 2.8% while the state limit counted 4%. The industrial production index had increased by 16%.

All the following mathematic figures prove the fact of the industry power increasing in China.

Ever-increasing number of factories, plants and manufacturers all over the country is going to lead to the stable and strong price-policy in China. The competition conditions are becoming extremely aggressive. Consequently, this competition requires the goods quality to be up to the highest level.

That is why Chinese manufacturers have to use high-quality and expensive raw materials while producing the goods.

Within the frameworks of so strict competition the price-factor becomes the main reason to start business on the territory of China.

The other two basic factors to interest the customer are regarded to be the Quality and the Management system.

The professional management system serves to help in solving any difficulty in the working-process with foreign customers. Chinese suppliers and manufacturers have an aspiration to get closely to the level of Hong Kong management system. Hong Kong is the third financial center in the world. It has got a very strong and strict economical structure which is available and accepted by many foreign companies working with China. Besides, Hong Kong itself makes a positively strong status that influences positively on the realization of Chinese products with a special sign on – “made in Hong Kong”.

As a rule, many Chinese manufacturers prefer to take part in the exhibitions that are not as large-sized as Guangzhou Chinese Export Commodities Fair, for example. The first reason that can be pointed out is the Price, exactly. The second reason is the specific of the product. Many factories should better take part in specialized exhibitions. Really, exhibitions of this kind attract those customers who are interested in a concrete specialized industry branch, with a certain type of production.

The main method of delivering the goods from China is exactly a container way of delivering. It gives the customer a good possibility to choose the most advantageous suppliers during the exhibition-period. Any manufacturer will definitely praise and appreciate your business approach if you let the supplier have a look at the packing list and count the container’s value. In such a situation a manufacturer considers you to be his potential customer. It gives you a good possibility to reduce the product price, but for the manufacturer – to accept this price.

The most important problem working with Chinese manufacturers is the Quality of the goods. It happens, a factory can make the goods samples of high quality for you to confirm. Moreover, a factory can supply you with all the certificates, photos, pictures, some other materials. Finally, you happen to get the whole container with the goods of inappropriate quality. So, it is very important to discuss the goods quality in details.

What can trouble you more during an exhibition period is visiting the factories and plants.  Manufactures can happen to be situated in different provinces and regions of the country.  However, according to the specific of industrial areas they are mainly situated in certain territories. Any industrial territory is examined first by: its natural recourses, geographical position, transport possibilities.  The maximum attention is paid to forming a system of crediting, tax and legal conditions.  Every manufacture possesses its own management system,
working staff, technology and strategy system, and some other specific features.  That is the reason of the discrepancy between the prices, delivering time, the quality and a system of management in different Chinese factories.  When visiting the exhibitions, have a try to visit some of Chinese manufactures to understand the real working process and see the difference with your eyes.

Material from the Transport Department of the company Optim Consult. Company presents the group of professionals possessing a high level of theoretical acknowledgement, a great practical experience, definite technology schemes and methods.