In honor of the anniversary the company organizes the cycle interviews with UCTD experts, each of these interviews will be devoted to specific stages of the purchase of equipment and will include applications for business advice. The first topic is decided to the choice of right equipment manufacturer in China.
It is no secret that an impressive proportion of small and medium businesses in Uzbekistan created with the involvement of equipment from China, in many ways — from perceptions and relations of price and quality. However, the entrepreneur who starts his business and before selecting equipments, there is a whole series of questions. How not to «bump» on unscrupulous manufacturers, how to find a balance between price and quality, whether to work directly with the factory or to order the service «turnkey» company-supplier? The Chinese market is- boundless ocean. Here you can find everything: equipment, raw materials, technology, construction equipment and much other different price categories. But how not to get lost in the ocean, and what pitfalls can expect business? It tells the head of the representative office of the Uzbek-Chinese Trading House Hikmat Abdurakhmanov .
— To what you should pay attention when choosing equipment supplier from China?
— The test can be started with a simple action. First of all, you need to visit the manufacturer’s website. His absence – is a wake-up call. Responsible manufacturer is always striving for publicity. On the site the entire line of products should be presented. You must also make sure to provide information about the manufacturer of the advertisement sites (alibaba.com, madeinchina.com, etc.), Check contacts, in particular, the availability of the exact address of the plant. After collecting primary information -check registration and bank documents. It is important to pay attention to the details in the contract. If you enter into a contract not with the plant, and the Chinese import-export company, carefully check the documents of the latter.
One of the necessary steps is a test plant on the basis of the China Council for Promoting International Trade (China Council for the Promotion of International Trade (CCPIT) The objective of the Council is to promote foreign trade, the use of foreign investment and the development of economic and trade relations between China and other countries. The organization also has a broad base of Chinese producers and can make a recommendation for one or the other of them.
Experience in the organization of export operations
— It is necessary to pay attention to whether there is a company in the English-speaking salespeople — it was convenient to communicate at later stages. And also the fact, not as fast as the factory in their responses — in the future, for example in the event of breakage, the efficiency factor can be crucial.
Before the transaction is necessary to find out whether the manufacturer’s experience in export-import operations. Do they work directly with Uzbekistan and with the CIS countries and engaged in the preparation of shipping documents whether in our country.
It is necessary to clarify all the details on the possibility of taking payment through a letter of credit or by the bank guarantee. Typically, manufacturing plants do not accept these types of payments. But there are situations when the plant responds positively to such a request, and at the final stage of the transaction when the buyer has already spent a lot of time and effort to resolve all questions of accredits of Bank, it appears that there was a banal misunderstanding, and the plant simply misunderstood the customer.
Hidden risks of large discounts
— For any entrepreneur price is almost always the deciding factor. What risks may be encountered in the pursuit of low price?
— To the issue of price you must approach very carefully. Low cost or its significant reduction during the negotiations should alert you. Perhaps the manufacturer understands whereby it will be reduced by the cost of your contract. For instance, on your order costly quality components will be replaced by cheaper and less reliable. Nuances balance search between price and quality in the work with the Chinese market is very complex.
Unfortunately, excessive flexibility of the Chinese supplier in terms of adaptation under the price the buyer expectations can play a cruel joke. If Western manufacturer probably will not go to the meeting and will insist on its price, it sometimes happens that the pressure of the buyer against price inexperienced Chinese manufacturer may agree. As a result, this may lead to poor quality or fragility equipment.
Often, only a long experience of working with the Chinese market and its specific knowledge can help to find the «golden mean» between price and quality.
Components and warranty service
— Many manufacturers at the stage of buying promise the most favorable conditions for the equipment and warranty service, but in the end, not all promises can be fulfilled, how to avoid it?
— In order to avoid receipt of incomplete or faulty goods equipment necessary to carry out inspection of the equipment — either independently or using the services of an independent company.
In case of delivery by a reliable trading company or a local supplier, you service the equipment can be provided to audit or inspection of the plant.
The following warranty question. If you work with the factory directly, it is important to initially understand how organized warranty from the manufacturer; you are interested in the equipment. It is important to pay attention to the timing of the warranty.
When working with a supplier that has an office in Uzbekistan, all controversial points are solved by the warranty company employees. In many ways, it saves time and, of course, much easier and more convenient for the buyer than to solve the problem with the factory in China, which has no direct representatives in the buyer’s country.
-What do you get by ordering the equipment is not directly from the manufacturer, and a supplier?
— First of all you must decide what a supplier of equipment, we are referring to a trading company, is engaged in the supply of equipment and having an office in Uzbekistan. If you choose a reliable and trusted supplier, you get:
The most optimal price and quality ratio, warranty terms are in some cases even better than when dealing directly with the manufacturer. This is explained by the fact that the plant longer cherishes the relationship with the supplier, which is working on a long term basis, rather than a businessman who came up with a one-time purchase. And also the fact is that the supplier company has solid experience in the field of research equipment. It is able to carry out a comparative analysis of competent market offerings throughout China and make the selection of the most appropriate and advantageous offers.
More trust from financial institutions. Banks and leasing companies of Uzbekistan are much more likely, and on more favorable terms to cooperate with a major supplier, which has the necessary human resources to guarantee the quality of the equipment and reduce risky warranty provisions.
Flexible payment .Further not all vendors are willing to provide flexible payment terms. A supplier can convince the producer to accept credit or bank warranty, or take it on yourself, paying the factory another form of payment, including direct transfer, which is much more convenient and reliable for the entrepreneur. In addition, experienced provider is able to offer the entrepreneur the supply of the national currency.
The most important resource in the business is time. The negotiation process may take several months or even years. For the buyer, by purchasing equipment that makes the analysis of their business plans, expects the installment of its new production line, negotiates with financial institutions, partners and potential customers. This requires knowledge of the specifics of the conclusion of foreign trade contracts in Uzbekistan and China, participate in negotiations with the bank, ready to adjust the specifications and details of the contract. The supplier often takes on these tasks you, explain all the details of the contract to the bank, lender, partner, owner, and so on. Believing of full range of services foreign trade professionals, you do not have to spend time trying to understand unfamiliar to you the nuances of logistics, insurance, contracting and customs clearance. You will be able to spend this time on what you understand better — in your business.
If we talk about UCTD, for example, our company for 10 years of existence, collected database of more than 1000 plants tested. The staff conducts regular work to ensure the relevance and expansion of the database.
With regard to inspection of equipment on the site, it is important to note here that UCTD situates offices in China and in Tashkent. The presence of offices in China, working closely with the market of Chinese manufacturers allows us to carry out, including inspection equipment as precisely as possible and in the shortest possible time.
We are often asked for help in the implementation of complex supply, we are the official representatives of CCI in China, have a long association with the Embassy of China in Uzbekistan, China Council for the Promotion of International Trade (China Council for the Promotion of International Trade (CCPIT) and many other organizations responsible for the development of trade relations China therefore understand the intricacies of conducting foreign economic activity of both Uzbekistan and China.