The Chinese economy is rising through a time of relatively low output costs compared to other parts of the world. This gives you, as a seller, a great chance to make good profits. You can source your products directly from China at incredibly low costs per unit and translate this into high income in your region or market place.
Initially, hat manufacturers manufactured products for $4 in factories in the United States. This was costing them a lot and causing lots of challenges till they discovered that everything had to be done differently (and quickly) to fulfill customers’ needs and, inevitably, to remain a viable business. Their solution was to then cooperate with Chinese producers who were prepared to deliver what hats wholesale wanted. Best of all, the hat factory was able to manufacture hats for just $2 a device there, far less than the original $4 price. This greatly impacted the company’s revenue scale.
There are four major reasons why this is possible in China and nowhere else:
- There’s easy access to resources.
- Wages are much cheaper in China.
- The Chinese are masters of mass manufacturing and production.
- The Chinese have refined and structured manufacturing lines.
The world has come to admit that the Chinese know what to do when it comes to manufacturing. This write-up will address what you need to know to successfully source your items, goods, or products from China.
Sourcing Chinese Hat Suppliers
Realize that your clients and customers don’t know your supplier. So, if your supplier messes things up, you’ll lose money. You want to pick someone who has your back and will deliver. When it comes to locating Chinese vendors, you need good information, so you’ll have to do your homework right. Let’s take a look at some of the most common places to find a major dealer.
Another issue is that you don’t know how authentic all of these wholesalers are. You must apply a stringent vetting procedure to each of them. You can find reliable headwear suppliers using Google, but you must be thorough with your scrutiny of the search results because authentic dealers might be hidden deep within the results.
- Suppliers Directories
The most secure approach to getting dealers from China or anywhere else is using an online suppliers directory, as this is a carefully selected and authenticated list. You might have to pay to get access to one, but it’s worth it. Some of its benefits are reduced risk of cheating, ability to select search results depending on the exact information you need, faster research (you can find commodity goods, and contact details for vendors easily).
- Chinese Online Marketplaces
Alibaba: If you are new to the hat business, Alibaba isn’t the best place to start. Hat manufacturers are the bulk of the listings you will find on this site and not distributors. This means that basically, they do not have a website, do not speak good English, and payments have to be paid by wire instead of by credit card. The major downside of using Alibaba is that there is no assurance that you will get the products you are ordering.
AliExpress: On the other hand, AliExpress is a sister e-market to Alibaba. It permits Chinese hat manufacturers and suppliers to market the items produced locally to consumers around the world. It’s is sometimes called the Chinese Amazon, except that delivery takes 2-3 weeks to arrive at your door, and everything is at the lowest wholesale price.
Made-in-China.com: Founded in 1998 and run by Focus Technology Co. Ltd., Made-in-China.com is also a platform in China with a third-party e-commerce network for B2B. It strives to serve international trade and provide Chinese goods and vendors with high-quality knowledge to buyers from around the world. Today, Made-in-China.com bridges the divide between global customers and Chinese quality supplier is recognized as the world’s leading B2B platform.
- Utilizing a Sourcing Agency
Importdojo.com: This company, owned by Manuel Becvar, currently has over 2500 vendors in almost all sectors to supply virtually any product you want. You will have the opportunity to choose from several pricing options with various features, such as feasibility reviews and other add-ons. Also, if you are looking for a full-time employee in China, you may hire a dedicated monthly sourcing representative.
80/20 Sourcing: This sourcing firm, operated by Gary Huang, is primarily known for its courses and high-quality coaching facilities. Gary also acts as a sourcing agent for Amazon sellers to assist them in selling Chinese goods.
Easy Imex: Providing various services such as – inventory procurement, ordering, negotiations, shipment and logistics, quality management, and plant inspected goods. Easy Imex, which is operated by Adam Gilbourne, functions as the one-stop import facility. It also helps consumers to use an online portal to navigate the process and track their goods.
- Participating in Trade Exhibitions
In China, there are two famous fairs every year – the Canton Fair and the East China Fair.
The Canton Fair: The Canton Fair in Guangzhou (near Hong Kong, South China) is the largest trade fair in China, and it is held twice annually. Tens of thousands of visitors attend this show yearly, with various items on display.
The East China Fair: The East China Fair is China’s biggest trade exhibition and is held in Shanghai once a year. In general, this is fair with the most vendors and the largest number of displays and sales. This fair has the largest turnover seen in China annually and is a good place to source for vendors.
If you cannot make it to China for some reason and you don’t think you will ever be visiting the country, there is a trade exhibition in Las Vegas you can attend – the International Consumer Electronics Show. The exhibition allows for Chinese entrants and vendors to showcase their wares. However, the downside to this fair may be that you can only get a limited pool of prospective Chinese vendors (many of them are not involved in these trade fairs, so you can’t get the best deal). You could still be fortunate that the commodity that you want is covered at this trade fair.
Verifying Hat Suppliers from China
There is a need to always verify the dealers and suppliers’ company or firm one is dealing with so as not to run into a scam or bad product delivery situation. The following points will highlight some steps and a few tricks to note when verifying a vendor.
- Google and Background-Check the Company
The next thing to do is check out Google Maps listings to figure out where the shop is located in China. If you can’t find them, then that’s a total no for your business. These are the kind of vendors you should never use. You need to be able to see where vendors are located and get their contact data, tax ID, and more.
- Onsite Checking
- Order Product Sample
- You will see how long the shipment takes (in contrast to the average period on the website).
- You will get a feel of the packaging and then decide if your target market will be okay with it.
- You can see the commodity quality. For long-term success, product quality is very critical.
As a general rule of thumb, samples from at least 3-4 firms should be ordered to weigh your alternatives and compare distribution times, product consistency, quality of communication, and, of course, price.
- Chat with Customer Service
- Contact a Former Customer
Types of Chinese Hat Supplier/Vendors
There are a few different types of Chinese hat suppliers you’ll run into – Chinese hat manufacturers, wholesalers, and drop shippers. Let’s go over the differences with each supplier to better understand who (and what) you want.
- Dropshippers
There are a few other drawbacks like not being able to brand your business and potentially lengthy distribution periods. But it also ensures that inventory, shipment, and packaging are not kept and, in some cases, customer service is not needed.
- Hat Wholesalers
- Hat Manufacturers
China hat manufacturers typically sell directly to wholesalers, including light and bulk wholesalers and liquidators. Thus, in terms of sourcing, most retailers find it difficult to reach manufacturers. However, smaller manufacturing companies often partner with retailers directly. It doesn’t hurt to find out!
Negotiating with Suppliers
However, you need to know that price negotiation should be held at the proper time. It will be an outstanding opportunity to bargain if your company is booming, and you need to order more items to keep your clients happy. If you’re just out to get the best deal, it isn’t yet time for negotiation. Also, don’t forget the supplier has to earn money too).
Here are a few tips to use while negotiating with your hat supplier:
- Compare Prices
Assume you sell earrings, and you feel robbed when you look at the prices of other vendors. Your vendor sells silver earrings for a pair of $20, while another vendor will offer the same earrings for $6. Although you might feel rather cheated, what you must do is ask a few questions. Are these earrings like my supplier’s earrings? Are they both made from genuine sterling silver? Are they made by hand? This is because the time, resources, and energy invested in them will result in varying prices.
However, you should put it up to your retailer if you ever believe that you’re not getting the best value for your money, or you ever feel cheated when buying merchandise. Never conceal your findings from your supplier, or it may get to the point where you find yourself angrily asking about issues that could have been settled amicably. Ask your suppliers questions. They will answer your questions if you put them up early. View your bond as your business partner with your supplier-all of you are there to make money.
- Over-Negotiation Is Not Good
- Email Template for Chinese Supplier
- When reaching them, use simple, descriptive words. You will get your message across by using fewer complex words.
- Try to keep it to a few questions as possible while sending a longer text.
- Split your messages into paragraphs to distinctly help the vendors distinguish your points.
Below is an example of an email you can mirror when sending inquiries:
Dear [name],
My name is Josh Greg. I am the product manager of XYZ company.
I am very interested in your XYZ product. I just have a few questions:
- How much would it cost to order 50 XYZ items?
- Do you have a minimum order limit?
- How many could you produce in one week?
Thanks for your time,
Josh Greg,
Product Manager
XYZ Company.
Now, here are a few take home from the sample above.
The email was friendly, right to the point, and each paragraph/question had distinctly distinct breaks. The tag “product manager” builds credibility and allows you to appear like a legitimate business. Although this is not mandatory, the supplier should take you seriously this way.
Also, don’t limit yourself to email as there are various means of reaching suppliers. Your supplier potentially works with several other customers. You can try to obtain their Skype ID for better communication.