“Made In China” goods are all around the world ranging from jeans to television sets. Historically, Chinese exports to other nations were mainly petroleum, textiles, and clothing. But nowadays, the export portfolio has increased to leather travel goods, toys and games, electronics, machinery, footwear to anything you can imagine.

Product is the key to importing. If the product does not have enough demand then it will likely not be very profitable to import. But there are products out there that can sell for a much higher price then what the buyer pays for it. Good profit potential is possible when selling in a different country.

But which are the most profitable products to source from China?

• Toys
• Motorcycles
• Furniture
• Sport Goods
• Kitchenware
• Electronic devices and home appliances
• Plastics and articles etc.
• Footwear and parts etc.

Apart from these top products, you can import many products from China, not for nothing is the world’s powerhouse, but these are the products that generate more profits. Despite the increasing wage and costs, China still holds an advantage in productivity and flexibility. You may find cheaper labor in other South East Asia countries but not many are as well trained. While China is increasingly losing its edge in low cost, China labor is moving up to the value chain and becoming a powerhouse of high-end products.

Never think you have to import from the top products list. It’s almost always better to import a product you’re knowledgeable about and preferably passionate about. Choose items you are passionate about. In order to be profitable you need to sell the products. How can you sell anything that you have no connection with? People need to understand that sales, profits and income don’t just come from using the latest Ebay-analysis tool.

The post The Most Profitable Products to Source from China appeared first on China Performance Group.

Here are ten steps that will explain how to trademark your product in China, so take a look for the step-by-step explanation of the registration process below.

1.    Choose a trademark agent
Unless your company has had a business presence in China, you will need to hire a state-designated trademark agent. These agents will assist throughout the entire registration process. There are over 5,000 agencies and the increasing numbers also gives you more choice in the matter. Despite what you hear, law firms are not allowed to be directly involved in the registration process, but few have qualified to be agents so double check!

2.    Decide whether your mark is eligible for registration
By viewing the booklet of registered trademarks you can see if yours is eligible for registration. The process is not the same as the US because someone else could have registered your trademark if you have not done it early enough and then legally be protected to use your trademark. So do it early! Look at these other tips to know when registering your trademark.

3.    Fill out the Application forms
The letter of entrustment, or the trademark registration application must be fully filled out in Chinese, so you’ll need the help of your agent. You’ll also need a lot copies but this information will be given to you by your agent so don’t fret.

4.    Select the classes of goods you qualify for
There are 42 different classes of goods, along with many sub-classes, that you can register your trademark for, so take a good look and think about what classes your product is used currently and in the future to avoid more work later.

5.    Check for similar trademarks prior to submission
Your agent should preform this step to ensure that your trademark is eligible to be registered but basically what they do is search databases, including Chinese characters, to check and see if there are similar ones.

6.    If eligible, apply for priority registration
A letter of priority showing the international recognition from a international treaty or agreement of your trademark will allow you to get priority registration rights and speed up the process. Note that you should have a translated copy.

7.    Submission of application
Your agent will submit all the required paperwork to the SAIC Trademark office in Beijing to get the ball rolling.

8.    Review by Trademark Office
All the materials submitted must be reviewed and evaluated before you can go on to the next step.

9.    Publication in Trademark Gazette as preliminary step, or rejection of the application
Publication in the Trademark Gazette, along with all other trademarks registered at the same time, is just the first step to the finalization of registration. These gazettes are then shared publically and if no one finds any copycats within three months, you’ve made it. In the chance that your trademark was rejected, you will have a chance to have an administrative review to find out what prevented the registration and get it sorted out.

10. Registration
Now you’ve done it! Congratulations! Now you just need to maintain your trademark registration status and keep copycats from arising.

Source: beijing.usembassy-china.org.cn/iprtrade.html

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Once known for their inadequate intellectual property rights laws, China has evolved and strengthened their policies to better protect domestic and foreign trademarks since they’ve joined the WTO. However it remains vital to understand these laws in order to maintain your brand equity in China and access the extensive market opportunities China has to offer.  Here are five things to know before you register your trademark in China.

1. Register your trademark early– China uses a system called “first-to-file” which differs from policies like those in the US or Europe. This difference is important because evidence needed to show prior use or ownership is not needed and therefore your trademark could “squatted” by someone else, and worse you could have to buy it back from them or have them legally use your trademark with their goods. Chinese infringement enforcement doesn’t protect those who haven’t registered their trademark, so it’s up to you to be proactive.
2. Your trademark needs to be distinctive and not conflict with any Chinese trademarks– In order to have your trademark approved by the SAIC Trademark Office in Beijing, your trademark must be distinctive. Not only is it better for marketing to have a trademark be unique, but with the 2,760,000 other registered trademarks there could be similarities.  Even if there is not immediate plan to do business in China, the future business plans may very well depend on the uniqueness and timeliness of registering your trademark.
3. Register in the jurisdictions of “Greater China” including Hong Kong, Taiwan, Macao, and Singapore– This step is also a recommendation for preemptive measures because it will help if you expand or it can just keep impersonators from trying to confuse customers with their products and yours. While you are making smart legal choices, don’t forget to include this one.
4. Create a Chinese version of your trademark– The Chinese equivalent of your name is important so your product preserves its identity.  Local knowledge and extensive understanding of China and the language will assist in finding the best Chinese version of your trademark. Some companies chose literal translations, like Apple, while others find transliterations of their names work best. Huge potential problems can be avoided if usages of words with negative meaning are prevented.
5. Create a system to look for infringers– The next smart step after you’ve registered and been approved in the trademark process is to create a system that will find potential products that are too similar and infringe on your copyright. This should include looking at the Trademark Gazette that displays all the trademarks that have been approved on a preliminary basis. If a possible infringement is found, the next legal action is administrative adjunction, but then civil litigation and criminal prosecution follow.  The earlier these are found, generally the less expensive they are to deal with.

Looking ahead is the best policy and these forward-thinking tips about registering your trademark will guarantee just that. Knowing these five important things can help your brand equity and save you from potential time and money-costing problems.

Sources: thenewaegis.com & beijing.usembassy-china.org.cn

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PPI – Pre-Production Inspection
PPI stands for Pre-Production Inspection. This inspection is performed at a factory in order to check if the facilities meet the customers’ desires. Especially when doing business with a certain factory for the first time, this step is highly recommended.

IPI – Initial-Production Inspection
When the first products are produced, an Initial-Production Inspection has to be conducted. If any inconveniences are detected, adjustments will be made as soon as possible in order to guarantee the quality. In particualr, this happens frequently with new and tailor-made products.

MPI – Mid-Production Inspection
Quite similar to IPI, Mid-Production Inspection is executed to ensure the quality of goods. The MPI is conducted in a later stage than the IPI.

FM – Factoring monitoring
Factoring monitoring involves a QC (Quality Control) expert, that monitors the factory during the production of high cost goods.

PSI – Pre-shipment Inspection
Before products are shipped to their destination, a predetermined percentage of the goods are inspected. This is called the PSI-the pre-shipment inspection.

FSI – Full Shipment Inspection
An FSI indicates that all  goods are checked individually, before being shipped.

CLI – Container Loading Inspection
When a Container Loading Inspection is conducted, a Quality Control expert will be present during the loading process. This particular inspection is seen as an added precaution to the PSI.

When making measurements agreements it is very important to ensure that all parties have the same system of measurement.. The International System of Quantities (registered as ISO/IEC 80000: Quantities and Units) is a recognized tool to use. Below, a list of the most common numerals is displayed:

This blog displayed the most important abbrieviations, as well as the most common mathematical entities in the field of sourcing. The mathematical entities  used in Chinese texts, are usually displayed in the English mathematical entities. Nevertheless, it might be useful to study the Chinese characters for the entities as well.

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The furniture business is what you would call a quiet industry in the business world. You won’t see headlines about furniture on a daily basis, but everyone’s subconsciously talking about it. Everyone uses a piece of furniture on a daily basis, whether it be a chair, a table, a bed or some other thing commonly found in a normal household. There are so many players in the furniture business and yet only a few come to mind. Ikea would probably stand out the most. The success of the furniture industry in China paved way for many manufacturers to rise in the land. These manufacturers basically offer their furniture at the same price as with everyone else in China, but they vary in terms of build, style and quality. In China, there is not one style that is the same with another because the manufacturers produce something different every day. So if you are seeking for good quality unique furniture, China can provide your requirements.

China is among the leading exporter of furniture in the world. Its success in the furniture export industry can be pinned down to many factors as cheap labor in the country, a wide consumer market, low export tariff costs and most of all, the support of foreign businesses. Aside from that, China is very rich in resources; the land has all the materials that it needs to sustain and supply its production of furniture.

Another important reasons to source furniture from China are that you have a wide selection of materials to choose for the type of furniture you want in the different Chinese factories. You can choose to have wood, metal, plastic and even paper furniture. You can choose your own design to make and usually there are factories that are quite capable of doing it for you. A large production of your furniture is the beginning of you creating your own brand.  There are many more reasons for you to consider outsourcing furniture from China.

An important thing about sourcing furniture from China, if your product looks good and is functional, people won’t normally care where it was manufactured or how much it cost. They’ll just take it home with them and it’ll become a conversation piece that could eventually lead to an effortless sale by referring your furniture to their family and friends. Also China has the biggest wholesale market and distribution center in the world, Shunde Market, just 10 kilometers away from Foshan City in Guangdong province, which is also knows as China’s furniture capital and is home of China National Council Light Industry Council and China National Furniture Association. Shunde Market extends more than 5 kilometers and is arranged by 12 rows and 20 streets. There are over 3,300 domestic and foreign furniture dealers and more than 1,500 furniture manufacturers.

Every office, house or even a room needs furniture. Furniture comes in different sizes, shapes and forms. For decades, China owned the furniture-manufacturing scene and provided most of the world with their low cost yet good quality furniture. To date, there is not one country that can compete with China’s low cost furniture most especially, if ordered in huge quantity. On top of that China’s export tariff is decreasing every now and then, which makes the trade even cheaper as the tariff drops.

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China is the biggest stone producer in the world. On top of that, China is one of the world’s biggest stone exporters. To illustrate: the total transaction value of stone imports and exports in 2012 reached an amount of more than 8 billion USD and includes an export value of more than 500 million USD (stone-product.com). This blog, describes the basics of the Chinese stone industry, and the ways in which foreign industries invest in these stones.

Main Industry Areas

China’s main focus concerning the stone export industry is processing raw stone materials into products with decorative functions (garden pavement, gravestones, granite counter tops, etc.). Examples of materials commonly used are granite, marble, slate, and sandstone. These stones have either local roots, or are imported from countries like Brazil, India and Turkey. Currently, China exports to more than 130 countries.

Industry Location and Types of Companies

Most of the Quarries and factories are concentrated in Fujian and Shandong. Fujian focuses primarily on the processing of natural stone. The province covers around 70 % of the natural stone industry in China. Shandon, in addition, is growing drastically as a stone producer and processor. Its natural harbors, logistic possibilities and solid industry basis have caused a rapid grow and ensure an even more dominant role in the future. Furthermore, most of the Chinese stone export goes via the harbor of Xiamen.

There are over 5000 quarries and over 10.000 factories to be found in China, and the companies come in all shapes and sizes. Some of the factory halls are equipped with the finest machinery. Others are small, open-air workshops with relatively low-standard cutting machines, and self-employed individuals. Quality standards as well as safety- and environmental standards vary highly as well, causing the need for Western importers to choose their Chinese producers/processors carefully.

 Complexity of import/export

Dealing with the Chinese stone industry can be complicated for foreign investors. For example, many processors source their raw materials from other quarries. Also, they often outsource part of the production process. This makes quality control from a distance complicated and sometimes merely impossible. Therefore, a large majority of orders are handled by trading agencies and agents that provide a connection between the buyer and the supplier. When sourcing in this way, the production process, quality control/assurance, ethical management and logistic activities can be arranged by the sourcing agent.

Conclusion

In conclusion, the Chinese stone market is huge and will remain so. Although the financial crisis has decreased the demand by foreign markets, the huge domestic market ensures a steady position of the industry. Furthermore, a province like Shandong keeps on improving its logistics, technology, and supply chains. The seemingly endless resources in China combined with the huge domestic market, ensure a sustainable dominant position of stone production/processing.

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There are many considerations one should take when sourcing goods from China, and when it comes to logistics there are many different ways to find the right logistics for you. Choosing the best shipment option is completely dependent on your unique circumstance but this article will give you some helpful comments about what you should consider when getting your goods back home.

The primary modes of transportation are air, land, and sea. Each come with unique benefits and it’s often a combination of these shipping methods to get the Chinese sourced goods to your business.

Air is the best bet for the quickest shipment options when sourcing from China obviously because of the distance an airplane can cover is much faster than the other modes of transportation. However, this speed comes at a cost and logistically one must weigh the benefits compared to the cost. Depending on the situation, air shipment could be the best if there are tight deadlines or a tighter control on the security of the sources items are needed because of the tracking which air travel is great at providing. Contrary to this, if the cargo is very heavy, air shipment may be sky high– pun intended.

Land can be divided into two sub-parts: truck or rail. Both are very common in the logistics of shipping products because the final destination is usually not next to the seaport or airport and will need to be transported across land. It also really varies whether it’s a rural or urban delivery area because in remote areas it is more difficult to have trafficked truck routes. When sourcing from China, there is no direction land route the cargo could take, so this mode of transportation must be used in coordination with another mode which complicates the path of travel but is a reality of logistics.

The mode of transportation that is generally the least expensive is by sea and this is the mode most widely used. This is usually because the shipments can take a very long time to deliver their cargos but can carry a massive amount of goods, which drives down the costs. The diversity of cargo that can be shipped by sea is also a major benefit to this mode. Shipping lanes from China to the US are plentiful but things such as inclement weather or nautical conditions can further delay an already slow method of transporting your goods.

source: trans-logistic.com

While considering each of those shipment options when sourcing from China, there should be some deliberation over the time frame you need your products, the security of your shipment, and usually the biggest factor, the cost. This blog should be a jumping off point into the logistics of sourcing products from China, and you can read about the shipping lanes from China here, or the pre-shipment inspection procedure here.

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Trade shows, fairs, and exhibitions in China have exploded in numbers in the recent years. However, the only trade fair you probably can name is the world-famous Canton Fair, but that’s barely scratching the surface of opportunity of trade shows in China. This blog will give you all the information you need to know about attending Chinese trade fairs.

There are several factors behind choosing which trade fair to attend, but the most important is finding the right show for your purposes. Therefore, identifying reasonable goals you wish to obtain is vital, while keeping in mind to be realistic. Be aware that trade fairs are often just initial meetings, with purchases and business deals to come afterwards. The internet has so many resources for trade fairs that doing research prior to arriving is made easy. To find trade fairs you can search industry associations, different trade publications, or even a website specializing in trade fairs, like ChinaExhibition.com where the information is easily broken down for your convenience. After something catches your eye, you can visit the website of the exhibition, see the vendors that will set up shop there, and then make a game plan of which companies you’d like to engage with.

Source: navagear.com

Before you arrive, make a list (written or mental) of questions and have professional business cards for exchange. If it’s your first trade fair then take it as a learning experience, take your time and be patient, talk to people, network, and if things go well you can follow up with your leads and perhaps make a factory visit or facilitate a business meeting.

While at the fair, don’t be a wallflower! Because of the common purpose of coming together for the show, it shouldn’t be awkward to begin conversations. With that said, you also don’t have to think you’ll talk with everyone, not every booth or person is going to interest you. Some large trade fairs will be crowded but it’s best to be patient and to not rush through the crowd otherwise you’ll lose the intended purpose.

Chinese trade shows come in all shapes and sizes, and in some more specialized fairs instances a translator might be a good idea because of the language difference. Most the time you can hire students waiting outside for a reasonable price but it’s best to already have a translator that you’re comfortable communicating through.

Source: inc.com

There are many guides to ease the tension of going to a Chinese trade fair, and we hope this information was a helpful addition. CPG has a Canton Fair specific checklist which will help to gather the materials needed before you go, while you’re there, and afterwards. These tips from experts are great for newbies to the trade fair world!

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When taking the Pacific lane, the ships will go through the south of the East China Sea. Then they go northward through the Sea of Japan through the Okhotsk to enter the North Pacific Ocean. Via this route the ships can reach the west of Latin America, the west of the U.S., New Zealand, Australia and western Canada.

In addition, numerous Chinese ships will take the Atlantic lane. In this case, the ships will go in a southern direction from China, and sail via the Indian Ocean and the Cape of Good Hope. Consequently, the ships can set direction to Western Europe, the East Coast of the U.S., the Suez Canal, the Gulf and the Mediterranean area. Also, the ships can transfer to the Pacific lane to set sail to the destinations mentioned in the previous paragraph.

A third route the ships are often taking is the Indian Ocean lane. This route is often used for oil transport. The lane enables the Chinese to reach the Persian Gulf, East Africa, Western Europe and North America by setting sail towards the Cape of Good Hope.

Since recent times, China is focusing on a fourth option, namely the Arctic lane. After being fabled for centuries, the route is now accessible due to recent global warming. The ice on the route is melting swiftly and this enables Chinese ships to take quicker routes to the West. The Chinese government is investing aggressively in the newfound option, and have sent their first ship to successfully cross the new lane already in 2012.

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When you’re sourcing from China it is necessary to get your goods checked. After the shipment is done, the transfer is irreversible. Therefore it is wise to do a pre-shipment inspection (PSI). In this blog, the steps that are taken in the pre-shipment inspection will be reviewed.

Before companies decide to do business together, multiple inspections are already finished: Pre-Production Inspection (PPI), Initial-Production Inspection (IPI) and Mid-Production Inspection (MPI). When the contract is signed, the buying company asks its bank for a letter of credit to assure the payment to the seller of goods. Once the licenses are obtained, the down payment (based on a certain percentage of the total volume) is made and the inspection order is forwarded to the particular company.

An independent third party inspection agency will inform the exporter about the date, time and location to execute their expertise. They also provide the exporting company with documentation as a bill of lading, commercial invoice, transportation bill, country of origin invoice, packing list and certificates of quality and inspection. Regulations are strict to avoid delays and customs difficulties.

On the agreed date and time the pre-shipment inspection will be performed. The quality, quantity, marking, packing and loading of the shipments are checked carefully by the third party. The buying company assigns the impartial company the number of goods that need to be checked. Besides the pre-shipment inspection, a full shipment inspection and a container loading inspection are great tools to make sure that you will receive an appropriate batch of goods.

The most important thing is the way the goods are treated. No matter the product, they should be handled safely and correctly. Include all verbal agreements in the contract to make sure that things are clear. A smart move would be to send the other party an email in which you repeat what the exact agreements are. Ensure that the imported goods will arrive at their destination according all technical specifications, quality standards and with the agreed quantity.

If no deviations are detected and all final documents are received from both the selling and the buying company, a “Clean Report of Findings” is issued. This document declares that the content is harmless and that the shipment will pass the border without problems. In most cases this “Clean Report of Findings” only requires a final invoice and transportation bill (bill of lading or airway bill). Now the goods are ready to be imported.

As stated earlier, pre-shipment inspection is an essential part of importing goods. Although China’s announcement to remove some administrative approval procedures, importing demands a professional approach. All things considered, a pre-shipment inspection is complicated and companies should be aware of this.

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