China Sourcing – Broken Down Into Straight Up, Actionable Advice

mike bellamy globalfromasia podcast2 v3

An informal one-on-one talk about China business adventures

My good friend, and serial entrepreneur, Mike Michelini is the host of the fun, information and informative “Global From Asia” podcast “where the daunting task of running an international business is broken down into straight up, actionable advice”.

For episode 71 of the podcast, we sat down for a 40 minute exchange of China business stories and advice.

Here is the link:

mike bellamy globalfromasia podcast2 v3

Topics Covered:

  • What brought you out to China in the beginning?
  • Today’s topic – China Sourcing Due Diligence Tactics, Can’t think of anyone with more experience than you
  • Can you share with us various types of China sourcing – wholesale/ off the shelf, tweaked versions of pre-existing products, and fully customized
  • Let’s focus on fully customized today – What are some MOQ amounts normally required to do these?
  • What are the other costs many also don’t factor in that are essential
  • I remember you mentioning you have worked with some Kickstarter projects and other crowdfunding projects – what is the normal process for these guys – should they start to source from China before they list on Kickstarter, or when funded, prototype? any tips?
  • Process of narrowing down the overwhelming list of suppliers in your hunt for the right Chinese factory and supplier relationship?
  • Ways to show you are serious buyer to a Chinese manufacturer
  • Some “buzzwords” or keywords you should know when talking to a factory- FOB, EXW, etc
  • Last tips or things I missed for buyers venturing into China for their procurement

How to Register, Protect, Monitor & Enforce Intellectual Property (IP) Rights in China

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Exclusive Video: How to Register, Protect, Monitor & Enforce IP Rights in China

Speaker: PassageMaker Founder- Mike Bellamy

As presented at Global Sources’ China Sourcing Fairs in Hong Kong (Oct 2014) and Johannesburg (Nov 2014)

If you are unable to open YouTube due to firewall issues, here are some related links for your reference: How to register, protect and monitor intellectual property (Part 1,2 &3 )

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“Pros to Know” award winners have provided the articles and video content listed above

What I told CNN about China sourcing

What I told CNN about China sourcing

I was recently interviewed on camera by CNN at the Global Sources trade show on the topic of what buyers need to know about China sourcing. They put me in the hot seat by asking “give our viewers the 5 most important tips for successful China sourcing” and do it in 30 seconds or less! I wrote a 300 page book on that very topic, so I have plenty of tips, but picking the top 5 and explaining them in just 30 seconds with no chance to prepare was a little intimidating. I must have said something right as CNN aired it right away!

Here are my 5 tips as given to CNN:

Selecting the right supplier upfront is the single most important step in the sourcing process. Starting a relationship with the wrong supplier can be catastrophic. So do your due diligence and verify your supplier BEFORE you place the purchase order.

Use your research skills not your negotiation skills to get a good price/ quality/lead-time. If you know what the fair price in China is for a given widget, you can use that leverage to get a good price from your verified supplier.

Link payments to supplier performance. You may have to give a deposit, but subsequent payments should only be made once the seller achieves pre-agreed targets for ship dates and quality standards. For example, final payment could take place AFTER the final inspection is done by the buyer’s representative.

Make sure the name on the contract matches the name on the bank account and the business license at the production site. If you send money to one account and sign a contract with a different legal entity, good luck getting your money back if things go wrong. Many buyers don’t pay attention to the details and end up sending money to a private account or to a holding company rather than direct to the factory.

Be more than a PO# in the eyes of the supplier. Sell them on why you are a good partner worth of respect. If the supplier can grow with you and likes you as a person, you will find advantage when it comes to lead times, payment terms and quality.

What 5 tips would you suggest to CNN?

Great China sourcing content worth reading from December 2013

Great China sourcing content worth reading

Here is a list of the most popular pieces of content from the China Sourcing Information Center. Much of the content below was created by PassageMaker staff who volunteer at the CSIC.

Best of CSIC 12.3.2013 to 1.13.2014

QC: OK to be picky. But be professional.

Best of Fall at Asia Quality Focus [AQF]

B/L (Bill of Lading) manipulation scam

Top 4 questions asked of the CSIC in 2013

Hong Kong’s Virtual Scammers

Best of Fall at Global Sources [GS]

Sourcing Fair & Conference: Melbourne 2013. Video Recording/ Resources for Buyers

Purchase Orders or Purchase Contracts?

Insider’s look at legal services in China: Introduction to the series (Part 1)

Problems with SD card delivery. Scam or legitimate excuse?

Free tools for due diligence (China’s courts compile first ever blacklist)